On May 16, Federated Department Stores
- Sales were essentially flat. Management cited softness in April, particularly at new Macy's locations.
- It's a good thing operating margins improved by 320 bps on account of lower selling, general, and administrative expenses. The company was able to get more out of those softer sales and reverse a loss in the previous year's quarter.
- For Q2, the company expects sales in the range of $6.0 billion-$6.1 billion, while same-store sales are expected to be up by 2%.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$5,921 |
$5,930 |
(0.2%) |
Net Profit* |
$52 |
($74) |
N/A |
EPS* |
$0.11 |
($0.13) |
N/A |
Diluted Shares |
476.4 |
558.0 |
(14.6%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
39.8% |
38.8% |
1.0 |
Operating Margin |
3.5% |
0.3% |
3.2 |
Net Margin** |
0.9% |
(1.3%) |
2.1 |
**Continued operations.
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$500 |
$241 |
107.5% |
Accounts Rec. |
$504 |
$2,300 |
(78.1%) |
Inventory |
$5,499 |
$5,432 |
1.2% |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable* |
$4,694 |
$5,154 |
(8.9%) |
Long-Term Debt |
$9,425 |
$8,837 |
6.7% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash From Ops.* |
($370) |
($114) |
N/A |
Capital Expenditures |
$32 |
$84 |
(61.9%) |
Free Cash Flow |
($402) |
($198) |
N/A |
Free cash flow is a Fool's best friend.
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