Apple’s financial commitment to its Retail segment will soar to nearly $1.5 billion by the end of fiscal 2006, according to the company’s latest filing with the federal Securities and Exchange Commission (SEC). Lease commitments of $705 million and capital expenditures of $569 million demonstrate Apple’s past loyalty to its retail operation. And Apple’s forecast of spending $210 million on retail capital projects this fiscal year indicate the company’s continuing level of loyalty to the operation. By the end of September 2006, Apple’s retail commitment will climb to $1.484 billion, according to the report.
The company’s latest 10-Q filing expands upon details issued in a press release and an analysts’ conference call earlier this year. The figures cover the last three calendar months of 2005, which correspond to Apple’s first quarter of 2006.
Apple’s first and fourth financial quarters have typically experienced the largest capital expenditures. The last quarter of 2005 was the highest reported with $49 million, compared to this latest quarter’s $40 million. The lowest recent capital expenditure occurred in Q2 2005, when Apple spent just $16 million on its retail stores.
Apple’s forecast that it would spend $210 million on retail capital expenditures is significantly more than the $100 million and $132 million spent during fiscal 2004 and 2005 respectively. No doubt the figure includes construction of the huge GM Plaza (NYC) store, and big new stores slated for Rome and Boston.
Lease commitments increased by $99 million during the quarter, significantly more than in the previous four quarters, when it averaged $55.7 million.
Apple stated that it has 4,739 employees, noting this covers only full-time employees, who could make up less than two-thirds of the total store workforce. That’s an increase of 1,066 from the previous quarter. During that period, 14 new stores opened, or an average of 76 employees per store.
Apple tallied $7.6 million to marketing for expenses on its seven high-profile stores, the SEC report said. That figure is nearly identiical to those in recent previous quarters.
Check the charts and graphs for further financial details.
