On Aug. 23, Stein Mart
- Stein Mart, like the rest of the retail world, blamed its 1.7% drop in sales and 1.2% decrease in comps on the unstable macro economy. Looks like this excuse will never get old.
- Gross margin performance suffered from the widespread problem of increasing markdowns to clear out excessive inventory. The operating margin was affected, as advertising and general operating costs rose.
- While this quarter was negatively influenced by a one-week shift in the calendar, management doesn't expect a turnaround in the near future. It's calling for a loss per share ranging from ($0.03) to ($0.06) in the third quarter.
- It's tough facing the sluggish economy as a retail operator these days, and it looks like the Motley Fool CAPS community knows this; they only issue Stein Mart one star out of a possible five. Competitors Ross Stores
(NASDAQ:ROST) and Macy's(NYSE:M) fare only slightly better, earning two-star ratings.
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$330.7 |
$336.3 |
(1.7%) |
|
Net Profit |
$2.2 |
$8.3 |
(73.6%) |
|
EPS |
$0.05 |
$0.19 |
(73.7%) |
|
Diluted Shares |
43.1 |
44.0 |
(2.1%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
26.1% |
28.0% |
(1.9) |
|
Operating Margin |
1.1% |
3.8% |
(2.6) |
|
Net Margin |
0.7% |
2.5% |
(1.8) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$16.9 |
$26.6 |
(36.5%) |
|
Accounts Rec. |
$10.0 |
$11.3 |
(11.5%) |
|
Inventory |
$272.4 |
$266.5 |
2.2% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$62.3 |
$84.9 |
(26.6%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash from Ops |
$4.0 |
$1.4 |
192.5% |
|
Capital Expenditures |
$12.6 |
$28.0 |
(54.9%) |
|
Free Cash Flow |
($8.6) |
($26.6) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
-
Last quarter, Stein Mart got slammed.
-
Macy's results are withering away, too.
-
This Fool doesn't suggest shopping for discounts at Ross.
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, Fool contributor Mike Cianciolo held no position in any of the companies in this article. The Fool has a disclosure policy.
