On May 24, Gap
- Sales increased by 3.4%, while comparable-store sales decreased 4%.
- Gross margin declined 2%, starting a decline that moved all the way down the line.
- The company paid a dividend of $0.08 per share during the first quarter and expects to pay about $260 million in dividends in fiscal year 2007.
- As of this writing, Gap carries a Motley Fool CAPS rating of one star, while competitor Abercrombie & Fitch
(NYSE:ANF) carries a three-star rating.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$3,558 |
$3,441 |
3.4% |
|
Net Profit |
$178 |
$242 |
(26.4%) |
|
EPS |
$0.22 |
$0.28 |
(21.4%) |
|
Diluted Shares |
818.7 |
860.7 |
(4.9%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
38.1% |
40.2% |
(2.1) |
|
Operating Margin |
7.3% |
10.8% |
(3.5) |
|
Net Margin |
5% |
7% |
(2.0) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,744 |
$2,821 |
(2.7%) |
|
Inventory |
$1,814 |
$1,906 |
(4.8%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$1,070 |
$1,236 |
(13.4%) |
|
Total Debt |
$514 |
$513 |
0.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$281 |
$316 |
(11.1%) |
|
Capital Expenditures |
$122 |
$91 |
34.1% |
|
Free Cash Flow |
$159 |
$225 |
(29.3%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
Gap is both a Motley Fool Inside Value and a Motley Fool Stock Advisor selection. Take a 30-day trial to either market-beating newsletter and see what you think.
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. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
