On December 20, 2006, footwear and athletic apparel retailer Finish Line
- Sales only grew 2.7% as same-store sales fell 3.3% for the quarter compared to a 3.6% gain last year.
- It's tough for margins to stay intact with slim sales, and they fell across the board. To make matters worse, operating income turned negative.
- Despite its troubles, Finish Line is a four-star stock in our community intelligence service CAPS, with 45 of 48 investors thinking it will outperform the S&P 500.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$281.5 |
$274.0 |
2.7% |
|
Net Profit |
($3.0) |
$0.8 |
N/A |
|
EPS |
($0.06) |
$0.02 |
N/A |
|
Diluted Shares |
46.9 |
49.1 |
(4.5%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
27.7% |
28.3% |
(0.7) |
|
Operating Margin |
(1.7%) |
0.4% |
(2.1) |
|
Net Margin |
(1.1%) |
0.3% |
(1.4) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$12.9 |
$39.3 |
(67.2%) |
|
Accounts Rec. |
$0.0 |
$0.0 |
N/A |
|
Inventory |
$356.9 |
$311.5 |
14.6% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Other Current Liabilities |
$164.6 |
$152.6 |
7.9% |
|
Short-Term Debt |
$20.4 |
$0.0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change |
|
|---|---|---|---|
|
Cash From Operations |
($22.9) |
($1.2) |
N/A |
|
Capital Expenditures |
$63.3 |
$51.4 |
N/A |
|
Free Cash Flow |
($86.2) |
($52.6) |
N/A |
Find out why Fools always follow the money.
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Foot Locker
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Related Foolishness:
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At the time of publication, David Meier did not own shares in any of the companies mentioned. Fool rules for disclosure are here.
