On Nov. 20, after the market closed, upscale department store operator Nordstrom
- Sales grew 12.4% to $1.9 billion, while same-store sales advanced an astounding 10.7%. Good merchandising appears to be making products fly off the shelves.
- Net income advanced 26.3% as lower markdowns enhanced margins, while earnings per share advanced 33.3%, partly because the company repurchased shares.
- Year-to-date free cash flow more than tripled to $524.8 million.
- Management expects full-year 2006 diluted earnings of $2.46 to $2.51 per share and announced that four new stores will open over the next four years.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$1,872,103 |
$1,666,130 |
12.4% |
|
Net Profit |
$135,673 |
$107,453 |
26.3% |
|
EPS |
$0.52 |
$0.39 |
33.3% |
|
Diluted Shares |
261,616 |
277,293 |
(5.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
38.0% |
36.5% |
1.5 |
|
Operating Margin |
11.8% |
9.8% |
2.0 |
|
Net Margin |
7.3% |
6.5% |
0.8 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$208,715 |
$239,943 |
(13.0%) |
|
Accounts Rec. |
$667,748 |
$626,864 |
6.5% |
|
Inventory |
$1,228,230 |
$1,166,471 |
5.3% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$758,402 |
$683,137 |
11.0% |
|
Long-Term Debt |
$624,631 |
$626,978 |
(0.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$712,529 |
$376,446 |
89.3% |
|
Capital Expenditures |
$187,748 |
$205,015 |
(8.4%) |
|
Free Cash Flow |
$524,781 |
$171,431 |
206.1% |
Find out why Fools always follow the money.
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.
Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
