On Sept. 26, Stride Rite
- Total sales advanced 21.4% to $177.5 million, though most of that growth was due to a recent acquisition of athletic footwear firm Saucony. Sales were strong in the Retail Stride Rite Children's Group and Sperry Top-Sider brand, up 17% and 15% respectively, while Keds fell 12% and Tommy Hilfiger Adult fell 36%. Children's Group retail same-store sales advanced 4.1% for the quarter.
- Net income grew 10%, while diluted earnings advanced 9.5% to 23 cents per share. Excluding acquisition integration costs, the company says it earned 24 cents; it also began expensing stock options during the quarter.
- Inventory jumped 37.5% for the quarter and was attributed in part to an increase in Keds and Saucony-related product. It will be important to track whether the company is able to whittle down this inventory going forward.
- Management expects full-year earnings of $0.82 to $0.88 per share, excluding a lower tax rate it mentioned in last quarter's earnings update. Based on the current stock price of $14.24, that's a forward P/E of 16-17. Stride Rite also acquired Robeez Footwear in August for $27.5 million, adding another brand to its stable of footwear offerings.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|---|
|
Sales |
$183,040 |
$177,521 |
$146,237 |
21.4% |
|
Net Profit |
-- |
$8,484 |
$7,715 |
10.0% |
|
EPS |
$0.24 |
$0.23 |
$0.21 |
9.5% |
|
Diluted Shares |
37,138 |
37,396 |
(0.7%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
41.61% |
39.79% |
1.82 |
|
Operating Margin |
8.43% |
7.56% |
0.87 |
|
Net Margin |
4.78% |
5.28% |
(0.50) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$24,346 |
$92,281 |
(73.6%) |
|
Accounts Rec. |
$91,967 |
$70,440 |
30.6% |
|
Inventory |
$118,463 |
$86,171 |
37.5% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Current Liabilities |
$53,889 |
$55,531 |
(3.0%) |
|
Long-Term Debt |
$55,000 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
Stride Rite might trip on its laces for not including a cash flow statement in the press release.
Find out why Fools always follow the money.
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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.
Fool contributor Ryan Fuhrmann is long shares of Nike but has no financial interest in any other company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
