On March 16, AnnTaylor Stores
- Revenues improved by 6.3%, primarily led by 5% higher sales from the Loft division and an extra week versus the previous year's Q4. Same-store sales decreased 6%, compared to a 6.8% increase last year.
- Operating margin declined to 5%, thanks to aggressive promotional activity at Loft, wide focus on clearing inventories, and a decline in sweater sales.
- Management has given EPS guidance in the range of $2.15-$2.25 for fiscal 2007.
(Figures in millions, except per-share data)
Income Statement Highlights|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$610.5 |
$574.0 |
6.3% |
|
Net Profit |
$21.5 |
$27.4 |
(21.5%) |
|
EPS |
$0.31 |
$0.38 |
(18.4%) |
|
Diluted Shares |
70.4 |
72.8 |
(3.3%) |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
47.6% |
51.0% |
(3.4) |
|
Operating Margin |
5.0% |
7.5% |
(2.5) |
|
Net Margin |
3.5% |
4.8% |
(1.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$360.6 |
$380.7 |
(5.3%) |
|
Accounts Rec. |
$16.5 |
$17.1 |
(3.5%) |
|
Inventory |
$233.6 |
$204.5 |
14.2% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$106.5 |
$97.4 |
9.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
The company did not include a cash flow statement with its release.
Free cash flow is a Fool's best friend.
Related Foolishness:
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