On Feb. 26, after the market-close, high-end department store retailer Nordstrom
- Total sales grew 14.6%, ahead of analyst expectations, as same-store department store sales advanced a fashionable 8.3%.
- Gross margin improved by 80 basis points, attributed to lower markdowns and strong sales of women's apparel.
- During the quarter, Nordstrom opened a Nordstrom Rack outlet mall in San Marcos, Calif., home to other retailing giants including Kohl's
(NYSE:KSS) , Wal-Mart(NYSE:WMT) , and Costco(NASDAQ:COST) . - Diluted earnings grew 29%, but analysts weren't happy that the company missed consensus estimates by a penny.
- Management is projecting full-year 2007 same-store sales growth of 3%-4% and earnings of $2.78-$2.84 per share.
(Figures in thousands, except per-share data)
Income Statement Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Sales |
$2,630,904 |
$2,295,818 |
14.6% |
|
Net Profit |
$232,341 |
$190,430 |
22.0% |
|
EPS |
$0.89 |
$0.69 |
29.0% |
|
Diluted Shares |
262,230 |
275,662 |
(4.9%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q4 2006 |
Q4 2005 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
38.3% |
37.5% |
0.8 |
|
Operating Margin |
12.2% |
11.2% |
1.0 |
|
Net Margin |
8.8% |
8.3% |
0.5 |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$402,559 |
$516,656 |
(22.1%) |
|
Accounts Rec. |
$684,376 |
$639,558 |
7.0% |
|
Inventory |
$997,289 |
$955,978 |
4.3% |
|
Liabilities |
Q4 2006 |
Q4 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$576,796 |
$540,019 |
6.8% |
|
Long-Term Debt* |
$630,452 |
$934,394 |
(32.5%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
Q4 2006 |
Q4 2005 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$1,142,635 |
$776,232 |
47.2% |
|
Capital Expenditures |
$264,437 |
$271,659 |
(2.7%) |
|
Free Cash Flow |
$878,198 |
$504,573 |
74.0% |
Find out why Fools always follow the money.
Related Foolishness:
- Penney Follows Lemmings Over the Cliff
- Retail's Battle for the Middle Class
- Couture Pays at Nordstrom
Wal-Mart is a Motley Fool Inside Value recommendation. Costco is a Motley Fool Stock Advisor selection.
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 has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.
