On March 29, footwear retailer DSW (NYSE:DSW) released fourth-quarter earnings for the period ended Feb. 3.

  • Revenues increased by 15.9%, helped by an additional week in the fourth quarter of 2006 and a 1% increase in same-store sales on a 13-week basis.
  • The company plans to open 30 new DSW stores in fiscal 2007 and estimates same-store sales of 3% to 5%, with diluted earnings per share of $1.63 to $1.68.
  • DSW and competitor Payless Shoesource (NYSE:PSS) are both three-star rated stocks in our CAPS community intelligence database. Join now and make your picks.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$329.1

$283.8

15.9%

Net Profit

$16.6

$10.0

65.4%

EPS

$0.37

$0.23

60.9%

Diluted Shares

44.3

44.1

0.4%

Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

27.1%

25.9%

1.2

Operating Margin

7.5%

5.9%

1.6

Net Margin

5.1%

3.5%

1.5

*Expressed in percentage points

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$171.9

$124.8

37.7%

Accounts Rec.

$8.3

$4.1

102.6%

Inventory

$237.7

$216.7

9.7%

Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$95.0

$85.5

11.0%

Learn the ways of the balance sheet.

Cash Flow Highlights

The company did not include a cash flow statement in its press release. I guess investors will have to walk around with only socks on while they wait for the 10-K.

Related Foolishness:

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