On May 24, early childhood development expert and kids' clothing retailer Gymboree
- Revenues and earnings both exceeded management guidance, by a fair margin in the case of net income.
- The company saw 3% higher same-store sales, 8% more retail stores, better margins, and a generous share buyback policy. There is no debt, and that hasty expansion is funded from cash on hand and operating cash flows. What's not to love?
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Sales |
$209.3 |
$185.8 |
12.6% |
|
Net Profit |
$20.9 |
$17.9 |
16.6% |
|
EPS |
$0.67 |
$0.53 |
26.4% |
|
Diluted Shares |
31.3 |
33.6 |
(6.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2008 |
Q1 2007 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
49.6% |
48.6% |
1.0 |
|
Operating Margin |
16.1% |
15.3% |
0.7 |
|
Net Margin |
10.0% |
9.6% |
0.3 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$94.3 |
$171.3 |
(45.0%) |
|
Accounts Rec. |
$22.0 |
$9.7 |
126.1% |
|
Inventory |
$85.0 |
$76.4 |
11.2% |
|
Liabilities |
Q1 2008 |
Q1 2007 |
Change |
|---|---|---|---|
|
Accounts Payable |
$29.4 |
$28.7 |
2.3% |
|
Long-Term Debt |
$0.0 |
$0.0 |
N/A |
The balance sheet reflects the company's health.
Cash Conversion Checkup
|
Q1 2008 |
Q1 2007 |
Change |
|
|---|---|---|---|
|
Days in Inventory |
81 |
82 |
(2) |
|
Days in Receivables |
8 |
5 |
2 |
|
Days Payables Outstanding |
36 |
34 |
2 |
|
Cash Conversion Cycle |
52 |
53 |
(1) |
Learn why retailers care about cash conversion metrics.
Cash Flow Highlights
Free cash flow is a Fool's best friend. Unfortunately, our friends at Gymboree chose not to supply this information today. Time-out, Gymbo!
Related Foolishness:
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, Anders Bylund owned Gymboree stock but had no other position in any company mentioned. Fool rules are here.
