On Feb. 14, Jones Apparel Group
- Earnings per share and margins based on reported GAAP numbers are all affected by the sale of the Polo Jeans business. Adjusting for the writedowns related to the sale, earnings per share were $2.28, only slightly lower than last year's $2.30.
- The small change in operating cash flow also shows that this year's performance is not nearly as bad as it appears on the income statement.
- Jones' share repurchases have reduced the weighted average diluted shares outstanding by a significant 7.2%.
- The balance sheet remains healthy, with strong working capital management helping to offset the loss of Polo Jeans.
(Figures in millions, except per-share data)
Income Statement Highlights
FY 2006 |
FY 2005 |
Change |
|
---|---|---|---|
Sales |
$4,743 |
$5,074 |
(6.5%) |
Net Profit |
($144) |
$274 |
N/A |
EPS |
($1.30) |
$2.30 |
N/A |
Diluted Shares |
111 |
119 |
(7.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
FY 2006 |
FY 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
36.1% |
36.1% |
0.0 |
Operating Margin |
(3.5%) |
9.8% |
(13.3) |
Net Margin |
(3.0%) |
5.4% |
(8.4) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
FY 2006 |
FY 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$71.5 |
$34.9 |
104.9% |
Accounts Rec. |
$412 |
$458 |
(10.2%) |
Inventory |
$636 |
$650 |
(2.1%) |
Liabilities |
FY 2006 |
FY 2005 |
Change |
---|---|---|---|
Accounts Payable |
$316 |
$257 |
23.0% |
Long-Term Debt |
$789 |
$790 |
(0.2%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
FY 2006 |
FY 2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$424 |
$427 |
(0.8%) |
Capital Expenditures |
$171 |
$88 |
94.9% |
Free Cash Flow |
$253 |
$340 |
(25.4%) |
Find out why Fools always follow the money.
Related Companies:
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Ann Taylor
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Liz Claiborne
(NYSE:LIZ) -
Talbots
(NYSE:TLB) -
Dillard's
(NYSE:DDS) -
Polo Ralph Lauren
(NYSE:RL)
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
- Foolish Fundamentals: Valuation
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.
At the time of publication, Nathan Parmelee had no position in any of the companies mentioned. Fool rules are here.