On Thursday, Motley Fool Hidden Gems pick New York & Co.
- Sales didn't quite meet expectations, but per-share earnings easily beat estimates, up more than 130% over last year's Q3. Meanwhile, same-store sales advanced 0.5% versus a 3.1% decline during the same period a year ago.
- Margins, too, improved across the board. Executives credited the gains to better sell-through and tight inventory and expense management.
- More good times may be ahead because the company raised full-year guidance. Executives now expect New York & Co. to earn $0.74 to $0.83 a stub on $1.20 billion to $1.22 billion in sales, up from earlier estimates of $0.70 to $0.82 a share on $1.19 billion to $1.21 billion in revenue.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q3 2006 |
Q3 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$270,922 |
$254,388 |
6.5% |
|
Net Profit |
$9,593 |
$4,154 |
130.9% |
|
EPS |
$0.16 |
$0.07 |
128.6% |
|
Diluted Shares |
59,963 |
57,675 |
4.0% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
33.2% |
29.3% |
3.9 |
|
Operating Margin |
6.1% |
3.4% |
2.7 |
|
Net Margin |
3.5% |
1.6% |
1.9 |
*Expressed in percentage points
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$23,732 |
$30,027 |
(21.0%) |
|
Accounts Rec. |
$0 |
$0 |
N/A |
|
Inventory |
$150,379 |
$136,772 |
9.9% |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$96,219 |
$84,762 |
13.5% |
|
Long-Term Debt |
$33,000 |
$75,000 |
(56.0%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q3 2006* |
Q3 2005* |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$26,419 |
$31,187 |
(15.3%) |
|
Capital Expenditures |
$66,084 |
$68,566 |
(3.6%) |
|
Free Cash Flow |
($39,665) |
($37,379) |
N/A |
*Through the first nine months of 2006
Find out why Fools always follow the money.
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New York & Co. is one of dozens of recommendations in the Motley Fool Hidden Gems portfolio. Here's a backstage peek at the stocks that are helping Tom Gardner and Bill Mann top the S&P index by more than 26% as of this writing.
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 Tim Beyers, ranked 1,787 out of 13,035 in Motley Fool CAPS , owns shares of New York & Co. You can find out which other stocks he owns by checking Tim's Fool profile. Gap is a selection of both the Stock Advisor and Inside Value services. The Motley Fool's disclosure policy always adds up.
