On Aug. 17, New York & Co. (NYSE:NWY) released Q2 2006 earnings for the period ended July 29.

  • Overall sales rose 4%, but same-store results dropped 4%.
  • Margins fell drastically, all the way down the income statement.
  • Earnings were barely half the tally achieved in the prior-year quarter, while cash provided by operations decreased by 65%.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q2 2006

Q2 2005

Change

Sales

$267,570

$264,858

$254,581

4%

Net Profit

--

$6,499

$12,250

(46.9%)

EPS

$0.10

$0.11

$0.21

(47.6%)

Diluted Shares

--

59,852

57,197

4.6%



Get back to basics with a look at the income statement.

Margin Checkup

Q2 2006

Q2 2005

Change*

Gross Margin

28.54%

32.22%

(3.68)

Operating Margin

4.3%

8.54%

(4.24)

Net Margin

2.45%

4.81%

(2.36)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q2 2006

Q2 2005

Change

Cash + ST Invest.

$36,888

$57,239

(35.6%)

Other Current Assets

$42,205

$40,501

4.2%

Inventory

$102,526

$100,977

1.5%



Liabilities

Q2 2006

Q2 2005

Change

Accounts Payable

$68,944

$66,572

3.6%

Long-Term Debt

$28,500

$75,000

(62%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q2 2006

Q2 2005

Change

Cash From Ops.

$11,921

$33,644

(64.6%)

Capital Expenditures

$38,057

$42,772

(11%)

Free Cash Flow

($26,136)

($9,128)

N/A



Find out why Fools always follow the money.

Related Companies:

  • Gap (NYSE:GPS)
  • J. Crew (NYSE:JCG)
  • Limited Brands (NYSE:LTD)
  • Ann Taylor (NYSE:ANN)
  • Coldwater Creek (NASDAQ:CWTR)

New York& Co. is aMotley Fool Hidden Gems recommendation. Gap is a recommendation ofStock AdvisorandInside Value.

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 checkFool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had shares of New York & Co., but no positions in any other firm mentioned. Fool rules are here.