DSW 2009 Annual Report Download - page 35

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Income Taxes. Our effective tax rate for fiscal 2009 was 40.4%, compared to 39.3% for fiscal 2008. The
increase in the effective tax rate was primarily a result of the valuation allowance related to other-than-temporary
impairments.
Net Income. For fiscal 2009, net income increased 103.5%, compared to fiscal 2008 and represented 3.4%
and 1.8% of net sales, respectively. This increase was primarily the result of an increase in gross profit partially
offset by an increase in operating expenses.
Fiscal Year Ended January 31, 2009 (Fiscal 2008) Compared to Fiscal Year Ended February 2, 2008
(Fiscal 2007)
Net Sales. Sales for the fiscal year ended January 31, 2009 increased by 4.1% from the fiscal year ended
February 2, 2008. The following table summarizes the increase in our net sales:
For the Fiscal Year Ended
January 31, 2009
(In millions)
Net sales for the fiscal year ended February 2, 2008 .................. $1,405.6
Decrease in comparable store sales . . ............................. (74.6)
Net increase in 2007 and 2008 new stores, dsw.com and closed store sales . . 131.9
Net sales for the fiscal year ended January 31, 2009 .................. $1,462.9
The following table summarizes our sales by segment and in total:
January 31,
2009
February 2,
2008
For the Fiscal Years Ended
(In millions)
DSW .................................................... $1,298.9 $1,230.2
Leased departments ......................................... 164.0 175.4
Total DSW Inc. ........................................... $1,462.9 $1,405.6
The following table summarizes our comparable store sales change by segment and in total:
Fiscal Year Ended
January 31, 2009
DSW .......................................................... (5.8)%
Leased departments................................................ (6.3)%
Total DSW Inc. .................................................. (5.9%)
The decrease in comparable sales was primarily a result of the challenging economic environment evidenced
by a decrease in customer traffic and units per transaction. For fiscal 2008, DSW segment comparable sales
decreased in women’s footwear by 6.0%, men’s footwear by 5.1%, accessories by 7.6% and athletic footwear by
5.4%.
Gross Profit. Gross profit is defined as net sales less cost of sales. Gross profit decreased as a percentage of
net sales from 26.3% in fiscal 2007 to 25.9% in fiscal 2008. By segment and in total, gross profit as a percentage of
net sales was:
January 31,
2009
February 2,
2008
For the Fiscal Years Ended
DSW .................................................... 27.1% 28.0%
Leased departments ......................................... 16.6% 14.7%
Total DSW Inc. ............................................ 25.9% 26.3%
The merchandise margin for the DSW segment for fiscal 2008 increased as a percentage of net sales to 42.8%
compared to merchandise margin of 42.1% in fiscal 2007 but was offset by increased store occupancy and
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