On May 22, Staples
- Earnings at Staples jumped 12.4%, as the retailer earned $209.1 million in the first quarter.
- Total sales increased 8.3%, but North American sales were up just 3%. International sales more than compensated, increasing 16%, boosted by a favorable currency impact.
- Staples generated $128.2 million in free cash flow and repurchased 7.2 million shares of its stock in the quarter.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$4,589.5 |
$4,237.6 |
8.3% |
|
Net Profit |
$209.1 |
$186.1 |
12.4% |
|
EPS |
$0.29 |
$0.25 |
16% |
|
Diluted Shares |
728.9 |
744.3 |
(2.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
28% |
28.1% |
(0.1) |
|
Operating Margin |
7% |
6.7% |
0.3 |
|
Net Margin |
4.6% |
4.4% |
0.2 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,287.4 |
$1,373.4 |
(6.3%) |
|
Accounts Rec. |
$738.8 |
$606.6 |
21.8% |
|
Inventory |
$1,997.6 |
$1,751.3 |
14.1% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,493.2 |
$1,438.5 |
3.8% |
|
Total Debt |
$522.6 |
$516.5 |
1.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash from Ops |
$192.3 |
$168.3 |
14.3% |
|
Capital Expenditures |
$64.1 |
$114.6 |
(44%) |
|
Free Cash Flow |
$128.2 |
$53.8 |
138.5% |
Free cash flow is a Fool's best friend.
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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.
At the time of publication, Fool contributor Mike Cianciolo held no position in Staples.
