DSW 2013 Annual Report Download - page 6

Table of Contents
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DSW is the destination for fabulous brands at a great value every single day. With thousands of shoes for women and men in 394 stores nationwide, DSW is
about the delight of finding the perfect shoe at the perfect price. Our DSW stores average approximately 22,000 square feet and carry approximately 23,000
pairs of shoes. A large assortment of handbags and accessories also adds to the breathtaking assortment DSW is known for. For an even bigger selection, shoe
lovers can shop our shoephoria system in store or anytime at dsw.com (where kids’ shoes are available), making it convenient to explore all the assortment that
DSW has to offer. In addition, DSW Rewards means shopping comes with perks; members earn points towards certificates every time they purchase. We
believe this combination of assortment, convenience and value differentiates us from our competitors and appeals to consumers from a broad range of
socioeconomic and demographic backgrounds.
At DSW, we’re focused on providing the best shoe shopping experience possible. Through our Affiliated Business Group, we partner with three other retailers
to help build and optimize their footwear businesses. From supplying product to supporting in-store experiences in 356 shoe departments, DSW helps these
partners create a more complete fashion experience through DSW’s expertise.
Please see our consolidated financial statements and the notes thereto in Item 8 of this Annual Report on Form 10-K for financial information about our two
segments: the DSW segment, which includes DSW stores and dsw.com, and the Affiliated Business Group segment. Additionally, a five year summary of
certain financial and operational information is included in Item 6 of this Annual Report.
We follow a 52/53-week fiscal year that ends on the Saturday nearest to January 31 in each year. The periods presented in these financial statements are the
fiscal years ended February 1, 2014 ("fiscal 2013"), February 2, 2013 ("fiscal 2012") and January 28, 2012 ("fiscal 2011"). Fiscal 2013 and 2011 each
consisted of 52 weeks, while fiscal 2012 consisted of 53 weeks.
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We were incorporated in the state of Ohio on January 20, 1969 and opened our first DSW store in Dublin, Ohio in 1991. In 1998, a predecessor of RVI
purchased DSW and affiliated shoe businesses from Schottenstein Stores Corporation and Nacht Management, Inc. In July 2005, we completed an initial
public offering of our Class A Common Shares, selling approximately 32.4 million shares at an offering price of $9.50 per share.
On May 26, 2011, RVI merged (the "Merger") with and into DSW MS LLC (“Merger Sub”), with Merger Sub surviving the merger and continuing as a
wholly owned subsidiary of DSW. Upon the closing of the Merger, each outstanding RVI common share was converted into 0.435 DSW Class A Common
Shares, unless the holder properly and timely elected to receive a like amount of DSW Class B Common Shares. The Merger was accounted for as a reverse
merger with RVI as the accounting acquirer and DSW (the surviving legal entity) as the accounting acquiree. As the Merger was an equity transaction between
entities under common control, purchase accounting was not applied. Pre-merger financial information presented in the DSW consolidated financial statements
represents consolidated RVI financial information. References to Retail Ventures or RVI refer to the pre-merger entity. The pre-merger financial information was
retrospectively recast in fiscal 2011 for the following matters:
•Share and per share information- DSW recast all RVI historical share and per share information, including earnings per share, to reflect the
exchange ratio of 0.435 for periods prior to the Merger.
•Segment presentation- DSW maintained its historical segment presentation. DSW sells products through three channels: DSW stores, dsw.com and
its Affiliated Business Group. The reportable segments are the DSW segment, which includes the DSW stores and dsw.com sales channels, and the
Affiliated Business Group segment. In order to reconcile to the consolidated financial statements, DSW includes Other, which consists of assets,
liabilities and expenses that are not attributable to the two reportable segments. The pre-merger or prior period consolidated financial statements and
notes were recast to reflect the two reportable segments and Other.
•Cost of sales- DSW conformed RVI's accounting policies and recast RVI's pre-merger or prior period financial statements and notes for distribution
and fulfillment expenses and store occupancy costs historically reported by RVI within operating expenses to be consistent with DSW's historical
classification of these costs within cost of sales.
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Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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