On Wednesday, Aug. 23, Coldwater Creek (NASDAQ:CWTR) released second-quarter 2006 earnings for the period ending July 29.
- Sales and profits both blew away year-ago numbers as well as analyst estimates.
- Gross margins expanded faster than the operational figures, pointing to great pricing power but some room for improvement in operational efficiency.
- Coldwater is spending freely on expansion, but with no debt on the balance sheet, all of the growth is powered by cash flows.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$197 |
$216 |
$153 |
41.2% |
|
Net Profit |
-- |
$12 |
$6 |
93.5% |
|
EPS |
$0.10 |
$0.13 |
$0.07 |
85.7% |
|
Diluted Shares |
95 |
94 |
0.4% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q2 2006 |
Q2 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
46.81% |
43.31% |
3.50 |
|
Operating Margin |
8.32% |
6.13% |
2.19 |
|
Net Margin |
5.55% |
4.04% |
1.51 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$113 |
$93 |
21.6% |
|
Accounts Rec. |
$29 |
$26 |
13.3% |
|
Inventory |
$124 |
$74 |
67.2% |
|
Liabilities |
Q2 2006 |
Q2 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$89 |
$51 |
74.5% |
|
Long-Term Debt |
$0 |
$0 |
N/A |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q2 2006 |
Q2 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$23 |
$12 |
90.8% |
|
Capital Expenditures |
$45 |
$30 |
49.8% |
|
Free Cash Flow |
($23) |
($18) |
-23.4% |
Find out why Fools always follow the money.
Related Companies:
- AnnTaylor Stores (NYSE:ANN)
- Chico 's FAS (NYSE:CHS)
- Federated Department Stores (NYSE:FD)
- JC Penney (NYSE:JCP)
- Nordstrom (NYSE:JWN)
- Talbots (NYSE:TLB)
Related Foolishness:
- Coldwater Creek Stays Hot
- Warm Breezes at Coldwater Creek
- Tricky Times at Talbots
- Chico's Still Charming
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, Anders Bylund had no position in any company mentioned. Fool rules are here .
