On May 23, Abercrombie & Fitch (NYSE:ANF) released first-quarter earnings for the period ended May 5.

  • Total revenue increased by 13%. Comps decreased across the board, leaving new stores responsible for all of the company's growth (and then some).
  • The teen-focused clothier opened its first European flagship store in London. For fiscal 2007, A&F expects to increase its gross retail square footage by approximately 11%-12% by adding 10 new Abercrombie & Fitch stores, 29 new abercrombie stores, 69 new Hollister stores, and nine new RUEHL stores.
  • For the first half of fiscal 2007, A&F expects $1.47 to $1.52 in net income per diluted share.

(Figures in millions, except per-share data.)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$742.4

$657.3

13%

Net Profit

$60.1

$56.2

6.8%

EPS

$0.65

$0.62

4.8%

Diluted Shares

92.3

91.3

1.1%

Get back to basics with the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

65.6%

65.4%

0.2

Operating Margin

12.5%

12.8%

(0.3)

Net Margin

8.1%

8.6%

(0.5)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$342.0

$429.2

(20.3%)

Accounts Rec.

$49.1

$33.8

45.1%

Inventory

$401.8

$336.7

19.3%

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable*

$111.8

$125.5

(10.9%)

Long-Term Debt

$0.0

$0.0

N/A

*Includes outstanding checks.

The balance sheet reflects the company's health.

Cash Flow Highlights
Abercrombie & Fitch's lack of a cash flow statement is anything but fashionable.

Free cash flow is a Fool's best friend.

Related Foolishness:

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