- Overall revenues were flat, with same-store sales trending down 5% from the prior-year quarter.
- Profits were cut in half from the prior year.
- Working capital management and other adjustments created healthier free cash flow of $300 million.
(Figures in millions)
Income Statement Highlights
Avg. Est. | Q2 2006 | Q2 2005 | Change | |
|---|---|---|---|---|
Sales | $3,690 | $3,716 | $3,716 | 0% |
Net Profit | -- | $128 | $272 | (52.9%) |
EPS | $0.14 | $0.15 | $0.30 | (50%) |
Diluted Shares | -- | 8,419 | 9,052 | (7%) |
Get back to basics with a look at the income statement.
Margin Checkup
Q2 2006 | Q2 2005 | Change* | |
|---|---|---|---|
Gross Margin | 32.91% | 37.27% | (4.36) |
Operating Margin | 4.95% | 11.52% | (6.57) |
Net Margin | 3.44% | 7.32% | (3.88) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
Assets | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Cash + ST Invest. | $2,789 | $2,536 | 10% |
Other Current Assets | $623 | $537 | 16% |
Inventory | $2,017 | $2,077 | (2.9%) |
Liabilities | Q2 2006 | Q2 2005 | Change |
|---|---|---|---|
Accounts Payable | $1,417 | $1,225 | 15.7% |
Long-Term Debt | $513 | $513 | 0% |
Learn the ways of the balance sheet.
Cash Flow Highlights
YTD 2006 | YTD 2005 | Change | |
|---|---|---|---|
Cash From Ops. | $533 | $296 | 80.1% |
Capital Expenditures | $233 | $275 | (15.3%) |
Free Cash Flow | $300 | $21 | 1328.6% |
Find out why Fools always follow the money.
Related companies:
- Abercrombie & Fitch (NYSE:ANF)
- Aeropostale (NYSE:ARO)
- Ann Taylor (NYSE:ANN)
- Urban Outfitters (NASDAQ:URBN)
- American Eagle Outfitters (NASDAQ:AEOS)
Gap is a recommendation ofMotley Fool Inside Value. A free trial will let you see why our Foolish cheap-stock guru thinks the wait for a turnaround is warranted.
Related Foolishness:
- Foolish Fundamentals: Margins
- Foolish Fundamentals: Enterprise Value
- Foolish Fundamentals: Free Cash Flow
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 American Eagle Outfitters, but no positions in any other company mentioned. Gap and American Eagle Outfitters are recommendations ofMotley Fool Stock Advisor. Fool rules are here.
