On March 7, warehouse retailer BJ's Wholesale Club
- Revenue rose 13.4% to $2.4 billion, thanks to a 10% rise in membership fees and to strong sales in its bakery, consumer-electronics, and paper-products categories.
- In spite of increasing revenue, net profits decreased by 46.5% to $28.5 million, because of lower gross margins combined with higher selling expenses. And let's not forget the charges for closing certain businesses.
- Sales of gasoline helped same-store sales increase by 1.5% for the quarter.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$2,431.2 |
$2,144.4 |
13.4% |
|
Net Profit* |
$28.5 |
$53.2 |
(46.5%) |
|
EPS* |
$0.44 |
$0.78 |
(43.6%) |
|
Diluted Shares |
65.2 |
68.0 |
(4.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
10.6% |
11.7% |
(1.1) |
|
Operating Margin |
1.9% |
4% |
(2.1) |
|
Net Margin |
1.2% |
2.5% |
(1.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$55.9 |
$162.2 |
(65.5%) |
|
Accounts Rec. |
$101.3 |
$101.4 |
(0.1%) |
|
Inventory |
$850.9 |
$813.3 |
4.6% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$560.4 |
$557.0 |
0.6% |
|
Long-Term Debt |
$2.2 |
$2.7 |
(18%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
2006 |
2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$172.9 |
$192.5 |
(10.2%) |
|
Capital Expenditures |
$190.8 |
$123.1 |
54.9% |
|
Free Cash Flow |
($17.9) |
$69.3 |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Big Mess at BJ's
- BJ's Wholesale Club: Buyout Rumors Still Buzzing
- Foolish Forecast: BJ's FY ETA
- Costco's Sales Delight
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