On May 17, J.C. Penney
- The success of newer private brands such as a.n.a. and east5th women's apparel, along with two new concepts from Liz Claiborne
(NYSE:LIZ) , contributed to a 16.9% increase in profit. - Internet sales from JCP.com continued to act as the company's fastest-growing channel as online sales increased 18%.
- Enhanced inventory management and better product flow to stores improved gross margins 70 basis points as the company continues to turn around operations.
- While the retail market remains a challenge, the company exceeded its expectations for the first quarter and has raised guidance $0.05 for the year to $5.49 earnings per share.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$4,350 |
$4,220 |
3.1% |
|
Net Profit |
$238 |
$210 |
13.3% |
|
EPS |
$1.04 |
$0.89 |
16.9% |
|
Diluted Shares |
228.8 |
236.3 |
(3.2%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.5% |
40.8% |
0.7 |
|
Operating Margin |
9.6% |
9.1% |
0.6 |
|
Net Margin |
5.5% |
5% |
0.5 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$3,068 |
$2,791 |
9.9% |
|
Inventory* |
$3,497 |
$3,355 |
4.2% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable** |
$2,827 |
$2,424 |
16.6% |
|
Long-Term Debt |
$3,706 |
$3,116 |
18.9% |
**Includes accrued expenses
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($29) |
($119) |
N/A |
|
Capital Expenditures |
$244 |
$126 |
93.7% |
|
Free Cash Flow |
($273) |
($245) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
