On March 1, Staples (NASDAQ:SPLS) released earnings for the fourth quarter ended Feb. 3.
- Revenue for the quarter rose 18.5% on continued strength in all three units: North American retail, North American delivery, and international. Excluding the extra week of sales, revenue increased 10%.
- Improved operating margins and continued share repurchases drove EPS 24% higher.
- In January, Staples announced it's going into India with a joint venture with Pantaloon Retail Ltd.
- For fiscal 2007, the company anticipates EPS to grow by 15% to 20% to around $1.43 to $1.49.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$5,285.9 |
$4,462.3 |
18.5% |
|
Net Profit |
$336.5 |
$276.7 |
21.6% |
|
EPS |
$0.46 |
$0.37 |
24.3% |
|
Diluted Shares |
714.7 |
727.4 |
(1.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
29.3% |
29.4% |
(0.1) |
|
Operating Margin |
9.9% |
9.7% |
0.2 |
|
Net Margin |
6.4% |
6.2% |
0.2 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,475.4 |
$1,570.9 |
(6.1%) |
|
Accounts Rec. |
$720.8 |
$576.7 |
25.0% |
|
Inventory |
$1,919.7 |
$1,706.4 |
12.5% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,486.2 |
$1,435.8 |
3.5% |
|
Total Debt |
$517.7 |
$530.5 |
(2.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
2006 |
2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$1,165.0 |
$1,198.6 |
(2.8%) |
|
Capital Expenditures |
$528.5 |
$456.1 |
15.9% |
|
Free Cash Flow |
$636.5 |
$742.5 |
(14.3%) |
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