On Mar. 1, Sears Holdings (NASDAQ:SHLD) released fourth-quarter earnings for the period ended Feb. 3.
- Revenue increased 1.3%, and there was a 3.1% decline in same-store sales as a result of competition from companies like Target (NYSE:TGT), which offset an extra week of sales during the quarter.
- The company repurchased 100,000 shares of common stock for $14 million -- at an average price of $165 per share -- during the quarter. It also bought back 6,000,000 million shares for $806 million, or at a rate of $133 per share in the full year.
- CAPS players give Sears, a turnaround in progress, a four-star rating and J.C. Penney (NYSE:JCP), a successful turnaround, a three-star rating.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change | |
|---|---|---|---|
|
Sales |
$16,288.0 |
$16,086.0 |
1.3% |
|
Net Profit |
$820.0 |
$648.0 |
26.5% |
|
EPS |
$5.33 |
$4.03 |
32.3% |
|
Diluted Shares |
153.9 |
160.7 |
(4.2%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
29.8% |
28.5% |
1.3 |
|
Operating Margin |
8.6% |
9.5% |
(0.9) |
|
Net Margin |
5.0% |
4.0% |
1.0 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,968.0 |
$4,440.0 |
(10.6%) |
|
Accounts Rec. |
$848.0 |
$811.0 |
4.6% |
|
Inventory |
$9,907.0 |
$9,068.0 |
9.3% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$3,312.0 |
$3,458.0 |
(4.2%) |
|
Long-Term Debt |
$2,850.0 |
$3,268.0 |
(12.8%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
No data available.
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Related Foolishness:
- Penney Follows Lemmings Over the Cliff
- The Best Retail Stock for 2007: Sears Holdings
- The Softer Side of Sears
Want to weigh in on Sears or any other retailers? Check out CAPS, The Motley Fool's new stock-picking service, and let your voice be heard.
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