On Aug. 30, dELiA*s
- Total revenue increased by 7.3%. Retail sales powered ahead 29.4%, including a 4.6% rise in same-store sales. The direct segment experienced a 2.4% decrease in sales.
- The gross margins declined 190 basis points. Retail products, while selling well, carry lower gross margins. Higher depreciation, payroll, and corporate overhead costs drove the operating margin down 300 basis points. That's usually not good for the bottom line.
- Despite "the uncertain retail environment and the likelihood for promotional activity to intensify," management said they will focus on controlling "inventory levels" and "improving our merchandising execution ... to drive the long term profitability of our Company."
(Figures in thousands, except per-share data.)
Income Statement Highlights
|
Q2 2007 |
Q2 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$52,438.0 |
$48,851.0 |
7.3% |
|
Net Profit |
($5,088.0) |
($3,129.0) |
N/A |
|
EPS |
($0.16) |
($0.12) |
N/A |
|
Diluted Shares |
30,845.2 |
26,374.3 |
17% |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
34.5% |
36.4% |
(1.9) |
|
Operating Margin |
(10.1%) |
(7.1%) |
(3.0) |
|
Net Margin |
(9.7%) |
(6.4%) |
(3.3) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$10,362.0 |
$22,198.0 |
(53.3%) |
|
Inventory |
$39,179.0 |
$33,401.0 |
17.3% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$17,187.0 |
$17,835.0 |
(3.6%) |
|
Long-Term Debt |
$2,345.0 |
$2,487.0 |
(5.7%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
YTD 2007 |
YTD 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($12,135.0) |
($4,733.0) |
N/A |
|
Capital Expenditures |
$13,939.0 |
$10,821.0 |
28.8% |
|
Free Cash Flow |
($26,074.0) |
($15,554.0) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
American Eagle is a Stock Advisor recommendation.
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.
