On Nov. 9, Pacific Sunwear of California (NASDAQ:PSUN) released third-quarter earnings for the period ended Oct. 28, 2006.

  • Sales dropped by 0.5% to $375.4 million because of a 6.7% decrease in same-store sales.
  • Earnings per share dropped by 75.9% to $0.13 because of an inventory write-down charge of $0.10 per diluted share, primarily for footwear and accessory categories, and stock compensation and pre-opening rent expenses of $0.03 per diluted share.
  • Out of 153 investors, 135 rate PacSun an "outperform" in The Motley Fool's new stock-rating service, CAPS. If you've got an opinion, bring it to CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2006

Q3 2005

Change

Sales

$375.4

$377.5

(0.5%)

Net Profit

$9.0

$40.5

(77.8%)

EPS

$0.13

$0.54

(75.9%)

Diluted Shares

69.6

75.3

(7.7%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

28.3%

38.3%

(9.9)

Operating Margin

3.7%

16.8%

(13.2)

Net Margin

2.4%

10.7%

(8.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$55.5

$121.0

(54.2%)

Inventory

$252.7

$243.5

3.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$77.9

$46.7

66.8%

Long-Term Debt

$0.0

$0.0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2006

YTD 2005

Change

Cash From Ops.

$85.6

$87.3

(2.0%)

Capital Expenditures

$107.1

$77.8

37.6%

Free Cash Flow

($21.5)

$9.5

N/A



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Related Companies:

  • Abercrombie & Fitch (NYSE:ANF)
  • Tween Brands (NYSE:TWB)
  • Charlotte Russe (NASDAQ:CHIC)

Related Foolishness:

Pacific Sunwear is a Motley Fool Stock Advisor selection. To see which other stocks are making Tom and David Gardner's list, take a 30-day free trial of the newsletter.

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