On May 4, home-furnishings retailer Cost Plus
- Despite a same-store sales decline of 3.9%, revenue increased by 8.1%.
- Gross margins fell by 310 basis points and earnings per share by more than 59%, as margins fell across the board.
- The company is projecting a net loss in the range of $12 million to $13 million for the first quarter of fiscal 2007. Revenue is expected to be approximately $207 million.
- In the first quarter of fiscal '07, gross profit margin is expected to show improvement as a result of the higher merchandise margins.
- For fiscal 2007, the company is projecting a net loss in the range of $13 million to $17 million and revenue in the range of $1.04 billion to $1.06 billion.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$396.7 |
$367.0 |
8.1% |
|
Net Profit |
$7.5 |
$18.3 |
(59.3%) |
|
EPS |
$0.34 |
$0.83 |
(59%) |
|
Diluted Shares |
22.1 |
22.1 |
(0.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
29.4% |
32.5% |
(3.1) |
|
Operating Margin |
4.2% |
8.3% |
(4.2) |
|
Net Margin |
1.9% |
5% |
(3.1) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$12.7 |
$40.4 |
(68.6%) |
|
Inventory |
$264.1 |
$250.4 |
5.4% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$69.9 |
$64.4 |
8.6% |
|
Long-Term Debt* |
$121.6 |
$62.3 |
95.1% |
The balance sheet reflects the company's health.
Cash Flow Highlights
The release did not have a cash flow statement. Pity. That's important information.
Free cash flow is a Fool's best friend.
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