On June 6, shoe retailer DSW
- Same-store sales varied widely by region. Overall, same-store sales decreased 3.6%, missing management's estimates.
- The gross margin improved, mainly from a greater percentage of increased mark-up sales and a lower percentage of sales derived from discount items.
- Due to a lack of customer demand for sandals and accessories, inventory levels rose 14.6%. An aggressive end-of-season sale is expected to help management with the excess inventory.
- Bring your thoughts on DSW and other footwear retailers like Stride Rite
(NYSE:SRR) and Payless Shoesource(NYSE:PSS) to the Motley Fool CAPS community.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$357.0 |
$316.5 |
12.8% |
|
Net Profit |
$23.7 |
$17.5 |
35.5% |
|
EPS |
$0.54 |
$0.40 |
35% |
|
Diluted Shares |
44.4 |
44.1 |
0.5% |
Get back to basics with the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
30.6% |
29.5% |
1.1 |
|
Operating Margin |
10.4% |
8.8% |
1.6 |
|
Net Margin |
6.7% |
5.5% |
1.1 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$175.3 |
$159.3 |
10% |
|
Accounts Rec. |
$12.9 |
$4.2 |
210% |
|
Inventory |
$258.0 |
$225.2 |
14.6% |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$109.1 |
$100.8 |
8.2% |
The balance sheet reflects the company's health.
Cash Flow Highlights
Management was too busy getting a bargain at DSW's sandal sale to post the cash flow statement.
Free cash flow is a Fool's best friend.
Related Foolishness:
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