On May 30, Chico's FAS
- Net sales of the company increased by 16%. White House/Black Market sales grew 30% despite a 2% decline in same-store sales.
- SG&A expenses surged from 41.1% to 45.2% of sales. Management cited an increase in payroll expenses as the company opens larger stores and increases the size of older ones.
- Those stores better get productive pretty quickly because the operating and net margins fell fast as a result.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$453.1 |
$390.7 |
16% |
|
Net Profit* |
$49.1 |
$53.0 |
(7.2%) |
|
EPS |
$0.28 |
$0.29 |
(3.4%) |
|
Diluted Shares |
176.6 |
183.1 |
(3.5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
61.7% |
61.7% |
0.0 |
|
Operating Margin |
16.5% |
20.6% |
(4.1) |
|
Net Margin |
10.8% |
13.6% |
(2.8) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$273.9 |
$407.2 |
(32.7%) |
|
Accounts Rec. |
$10.6 |
$6.1 |
74.2% |
|
Inventory |
$141.5 |
$115.6 |
22.4% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$73.6 |
$64.8 |
13.6% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$88.4 |
$89.6 |
(1.3%) |
|
Capital Expenditures |
$52.3 |
$53.6 |
(2.5%) |
|
Free Cash Flow |
$36.2 |
$36.0 |
0.5% |
Free cash flow is a Fool's best friend.
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