On Nov. 9, young ladies' outfitter Charlotte Russe
- 2006 was a great year for Charlotte Russe, as consumers seemed to connect with the company's fashion direction throughout the year. Comparable store sales improved 15.3% over fiscal 2005, and the company added 40 new stores in 2006.
- Margins are improving, more as a result of operational efficiency than pricing power or product mix. Management's stated goal is to reach 10% trailing operational margins within the next 12 to 18 months.
- The rapid growth is powered by the company's cash accounts and cash flows, though those reserves are depleting rapidly. Charlotte Russe might need to take on some debt to continue the pace of its buildout schedule.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$688.4 |
$681.5 |
$511.3 |
33.3% |
|
Net Profit Continuing Ops |
-- |
$37.2 |
$16.8 |
121.1% |
|
EPS |
$1.42 |
$1.50 |
$0.70 |
114.3% |
|
Diluted Shares |
-- |
24.8 |
24.1 |
3% |
Get back to basics with a look at the income statement.
Margin Checkup
|
FY 2006 |
FY 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
27.86% |
26.21% |
1.65 |
|
Operating Margin |
8.66% |
5.16% |
3.50 |
|
Net Margin |
5.45% |
3.29% |
2.16 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$90.3 |
$33.7 |
168% |
|
Accounts Rec. |
$0.0 |
$0.0 |
N/A |
|
Inventory |
$44.9 |
$45.1 |
(0.6%) |
|
Liabilities |
FY 2006 |
FY 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$32.6 |
$34.2 |
(4.7%) |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
The company did not provide cash flow details, though trailing-12-month FCF has hovered between $3 million and $28 million over the past year, after capital expenditures in the $40 million to $45 million range.
Find out why Fools always follow the money.
Retail Checkup
|
FY 2006 |
FY 2005 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
33.4 |
45.6 |
(12.2) |
|
Days in Receivables |
0.0 |
0.0 |
0.0 |
|
Days Payables Outstanding |
24.8 |
32.7 |
(7.9) |
|
Cash Conversion Cycle |
8.6 |
12.9 |
(4.3) |
Read up on cash conversion metrics.
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Related Foolishness:
- Charlotte Russe Grows Up So Fast: Fool by Numbers
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At the time of publication, Fool contributor Anders Bylund had no position in any company mentioned. Fool rules are here .
