On May 17, Nordstrom
- Customers responded favorably to Nordstrom's continued expansion of luxury designer offerings, generating 9.3% more revenue compared to 2006.
- Robust sales from the spring collection, coupled with improving margins, boosted earnings per shares an impressive 25%.
- Management shifted its entire securitization program onto the balance sheet, resulting in $850 million in securitized debt, $943 million in co-branded Visa receivables, and $300 million in cash.
- Shoppers seem unfazed by economic concerns; Nordstrom and its peers J.C. Penney
(NYSE:JCP) and Kohl's(NYSE:KSS) all posted better-than-expected earnings.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$1,953.9 |
$1,787.2 |
9.3% |
|
Net Profit |
$156.8 |
$131.2 |
19.5% |
|
EPS |
$0.60 |
$0.48 |
25% |
|
Diluted Shares |
262.7 |
272.8 |
(3.7%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
37.8% |
37.2% |
0.7 |
|
Operating Margin |
10.5% |
9.5% |
1.0 |
|
Net Margin |
8% |
7.3% |
0.7 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$744.6 |
$291.3 |
155.6% |
|
Accounts Rec. |
$1,602.5 |
$619.1 |
158.8% |
|
Inventory |
$1,105.0 |
$1,078.8 |
2.4% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$699.7 |
$639.0 |
9.5% |
|
Long-Term Debt |
$1,474.6 |
$624.9 |
136% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($457.5) |
$28.8 |
N/A |
|
Capital Expenditures |
$85.8 |
$47.5 |
80.6% |
|
Free Cash Flow |
($543.4) |
($18.8) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
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