DSW 2009 Annual Report Download - page 33

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We have continued making investments in our business that are critical to long-term growth, such as improved
information technology systems and new stores. As of January 30, 2010, our cash and short-term investments
balance increased to $289.3 million and we have no long-term debt.
As of January 30, 2010, we operated 305 DSW stores, dsw.com and leased departments in 266 Stein Mart
stores, 66 Gordmans stores, 23 Filene’s Basement stores and one Frugal Fannie’s store. We manage our operations
in three operating segments, defined as DSW stores, dsw.com and leased departments. DSW stores and dsw.com are
aggregated and presented as one reportable segment, the DSW segment.
The following table represents selected components of our historical consolidated results of operations,
expressed as percentages of net sales:
January 30,
2010
January 31,
2009
February 2,
2008
For the Fiscal Years Ended
Net sales ....................................... 100.0% 100.0% 100.0%
Cost of sales .................................... (70.8) (74.1) (73.7)
Gross profit ..................................... 29.2 25.9 26.3
Operating expenses................................ (23.4) (23.0) (20.5)
Operating profit . . ................................ 5.8 2.9 5.8
Interest income, net ............................. 0.1 0.2 0.4
Non-operating expense, net .......................... (0.2) (0.1)
Earnings before income taxes ........................ 5.7 3.0 6.2
Income tax provision .............................. (2.3) (1.2) (2.4)
Net income ..................................... 3.4% 1.8% 3.8%
Fiscal Year Ended January 30, 2010 (Fiscal 2009) Compared to Fiscal Year Ended January 31, 2009
(Fiscal 2008)
Net Sales. Sales for the fiscal year ended January 30, 2010 increased by 9.5% from the fiscal year ended
January 31, 2009. The following table summarizes the increase in our net sales:
For the Fiscal Year Ended
January 30, 2010
(In millions)
Net sales for the fiscal year ended January 31, 2009 .................. $1,462.9
Increase in comparable store sales . . . ............................. 42.8
Net increase in 2008 and 2009 new stores, dsw.com and closed store sales . . 96.9
Net sales for the fiscal year ended January 30, 2010 .................. $1,602.6
The following table summarizes our sales change by segment and in total:
January 30,
2010
January 31,
2009
For the Fiscal Years Ended
(In millions)
DSW.................................................... $1,455.0 $1,298.9
Leased departments ......................................... 147.6 164.0
Total DSW Inc. ........................................... $1,602.6 $1,462.9
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