On May 21, Pacific Sunwear
- Earnings at PacSun plummeted to negative territory, as the retailer lost $5.1 million in the first quarter.
- Although total sales increased 6.9%, comparable-store sales fell 1.2%, dragged down by demo locations, which posted a 12.1% decrease in comps.
- Despite the losses, the company stood by its outlook for the second quarter: It expects to earn $0.18 to $0.20 per diluted share, with low-single-digit same-store sales growth.
(Figures in millions, except per-share data.)
Income Statement Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Sales |
$320.6 |
$299.9 |
6.9% |
Net Profit |
($5.1) |
$11.9 |
N/A |
EPS |
($0.07) |
$0.16 |
N/A |
Diluted Shares |
69.9 |
73.7 |
(5.1%) |
Get back to basics with the income statement.
Margin Checkup
Q1 2007 |
Q1 2006 |
Change* |
|
---|---|---|---|
Gross Margin |
74.2% |
67.6% |
6.6 |
Operating Margin |
(2.9%) |
5.8% |
N/A |
Net Margin |
(1.6%) |
3.9% |
N/A |
Margins are the earnings engine.
Balance Sheet Highlights
Assets |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Cash + ST Invest. |
$42.7 |
$107.7 |
(60.35%) |
Inventory |
$210.2 |
$222.2 |
(5.4%) |
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
---|---|---|---|
Accounts Payable |
$68.5 |
$45.4 |
50.9% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Q1 2007 |
Q1 2006 |
Change |
|
---|---|---|---|
Cash from Ops |
($9.4) |
$1.4 |
N/A |
Capital Expenditures |
$32.4 |
$29.1 |
11.2% |
Free Cash Flow |
($41.7) |
($27.7) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Pacific Sunwear Wipeout?: Fool by Numbers
- Clouds Over PacSun
- Fool on the Street: Enlighted by PacSun
Pacific Sunwear is a Stock Advisor recommendation. To see what other companies David and Tom Gardner have recommended to investors since 2002, click here for a 30-day free trial.
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At the time of publication, Fool contributor Mike Cianciolo held no position in Pacific Sunwear.