On Feb. 22, footwear designer and retailer Skechers USA
- Total sales grew an impressive 36%, ahead of analyst expectations. Skechers' brands are running right at the forefront of fashion.
- Diluted earnings also beat analyst projections, growing 136%, thanks partly to higher gross margins and lower interest expense.
- Inventory grew faster than sales, advancing nearly 48%.
- Management is projecting first-quarter 2007 diluted earnings of $0.50-$0.55 per share, and net sales of $325 million-$335 million.
- Stay tuned for the full analysis on Skechers. The stock currently merits a four-star rating from the Motley Fool CAPS community. To see what all the fuss is about, join the service for free today.
(Figures in thousands, except per-share data)
Income Statement Highlights
Q4 2006 |
Q4 2005 |
Change |
|
---|---|---|---|
Sales |
$304,494 |
$223,494 |
36.2% |
Net Profit |
$14,582 |
$5,901 |
147.1% |
EPS |
$0.33 |
$0.14 |
135.7% |
Diluted Shares |
46,564 |
41,229 |
12.9% |
Get back to basics with a look at the income statement.
Margin Checkup
Q4 2006 |
Q4 2005 |
Change* |
|
---|---|---|---|
Gross Margin |
42.01% |
41.63% |
0.38 |
Operating Margin |
7.68% |
4.73% |
2.95 |
Net Margin |
4.79% |
2.64% |
2.15 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Cash + ST Invest. |
$220,485 |
$197,007 |
11.9% |
Accounts Rec. |
$177,740 |
$134,600 |
32.1% |
Inventory |
$200,877 |
$136,171 |
47.5% |
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
---|---|---|---|
Accounts Payable |
$161,150 |
$108,395 |
48.7% |
Long-Term Debt |
$106,805 |
$107,288 |
(0.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
Fools will have to wait until Skechers files its 10-K with the SEC for juicy cash flow details.
Find out why Fools always follow the money.
Comparable companies:
-
Nike
(NYSE:NKE) -
Timberland
(NYSE:TBL) -
Crocs
(NASDAQ:CROX) -
Deckers Outdoor
(NASDAQ:DECK)
Related Foolishness:
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Deckers Outdoor is a former Motley Fool Hidden Gems recommendation. To find out more about how small-cap stocks can have a big impact on your portfolio, try Tom Gardner and Bill Mann's newsletter service free for 30 days.
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.