On March 1, Gap
- Total sales grew just more than 2% for the quarter, while earnings per share declined 31% during the same period.
- Gap announced that Bob Fisher will act as interim president and CEO and Marka Hansen as the new president of Gap Brand.
- The company announced it will close its Forth & Towne concept by the end of June 2007.
(Figures in millions, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$4,930.0 |
$4,821.0 |
2.3% |
Net Profit |
$219.0 |
$337.0 |
(35.0%) |
EPS |
$0.27 |
$0.39 |
(30.8%) |
Diluted Shares |
817.6 |
870.5 |
(6.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin** |
32.5% |
34.0% |
(1.5) |
Operating Margin |
7.1% |
10.6% |
(3.5%) |
Net Margin |
4.4% |
7.0% |
(2.6) |
**Cost of goods sold includes occupancy expenses.
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. * |
$2,644.0 |
$3,042.0 |
(13.1%) |
Inventory |
$1,796.0 |
$1,696.0 |
5.9% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$1,109.0 |
$1,132.0 |
(2.0%) |
Long-Term Debt |
$188.0 |
$513.0 |
(63.4%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
2006 |
2005 |
Change |
|
---|---|---|---|
Cash From Ops. |
$1,250.0 |
$1,551.0 |
(19.4%) |
Capital Expenditures |
$572.0 |
$600.0 |
(4.7%) |
Free Cash Flow |
$678.0 |
$951.0 |
(28.7%) |
Find out why Fools always follow the money.
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