On Feb. 23, Gap (NYSE:GPS) released full-year 2005 earnings for the period ended Jan. 29, 2006.

  • Revenues dropped 1.5%, with same-store sales down 5%.
  • Net profit was down 3.2% from last year, while EPS rose 2.5%.
  • Margins took a steep drop across the board.

(Figures in millions, except per-share data)

Income Statement Highlights

Avg. Est.

FY 2005

FY 2004

% Change

Sales

$16,050

$16,023

$16,267

(1.5)

Net Profit

--

$1,113

$1,150

(3.2)

EPS

$1.24

$1.24

$1.21

2.5



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

Margin Checkup

FY 2005

FY 2004

Change

Gross Margin

36.63%

39.23%

(2.60)

Op. Margin

10.89%

12.82%

(1.93)

Net Margin

6.95%

7.07%

(0.12)



Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

FY 2005

FY 2004

% Change

Cash + ST Invest.

$2,987

$3,062

(2.4)

Inventory

$1,696

$1,814

(6.5)



Liabilities

FY 2005

FY 2004

% Change

Long-Term Debt

$513

$513

0

Accounts Pay.

$1,132

$1,240

(8.7)



Cash Flow Highlights

FY 2005

FY 2004

% Change

Cash From Ops.

$1,551

$1,597

(2.9)

Capital Expend.

$600

$419

43.2

Free Cash Flow

$951

$1,178

(19.3)



Find out why Fools always follow the money.

Related Companies:

  • Abercrombie & Fitch (NYSE:ANF)
  • Aeropostale (NYSE:ARO)
  • Ann Taylor (NYSE:ANN)
  • Chico's FAS (NYSE:CHS)

Related Foolishness:

Gap is aMotley Fool Inside Valueand aMotley Fool Stock Advisorrecommendation. Check out any of the Fool's investing newsletters with afree, 30-day guest pass.

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.

At the time of publication,Seth Jaysonhad shares of Aeropostale, but no positions in any other company mentioned. Gap is also aMotley Fool Stock Advisorpick. Fool rules arehere.