On Feb. 21, Abercrombie & Fitch (NYSE:ANF) released fourth-quarter earnings for the period ended Feb. 3.

  • Total revenues increased 18% despite decline in comparable stores sales by 3%.
  • The company plans to add six Abercrombie & Fitch stores, 67 Hollister stores, 27 new abercrombie stores, and 10 RUEHL stores, increasing gross square footage by 12% for 2007.
  • In Motley Fool CAPS, 396 out of the 457 investors who've rated the company think Abercrombie will outperform the S&P 500. Come let us know what you think.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,138.7

$961.4

18.4%

Net Profit

$198.2

$164.6

20.4%

EPS

$2.14

$1.80

18.9%

Diluted Shares

92.6

91.3

1.4%



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

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

66.4%

66.5%

(0.2)

Operating Margin

27.1%

27.8%

(0.7)

Net Margin

17.4%

17.1%

0.3

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.*

$529.8

$461.9

14.7%

Accounts Rec.

$43.2

$41.9

3.3%

Inventory

$427.4

$362.5

17.9%

*Marketable Securities are considered as short-term investments.

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$128.3

$145.3

(11.7%)

Long-Term Debt

$0

$0

n/a



Learn the ways of the balance sheet.

Cash Flow Highlights

Our in-house stock valuation professor would give Abercrombie a failing grade for not providing a cash flow statement with earnings.

Find out why Fools always follow the money.

Related Companies:

  • American Eagle Outfitters (NASDAQ:AEOS)
  • Guess? (NYSE:GES)
  • Urban Outfitters (NASDAQ:URBN)
  • Limited Brands (NYSE:LTD)
  • Ross Stores (NASDAQ:ROST)

Related Foolishness:

American Eagle Outfitters is a Motley Fool Stock Advisor newsletter selection. Limited Brands is an Income Investor recommendation.

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