DSW 2014 Annual Report Download - page 26

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Table of Contents
Fiscal
2014
2013
2012
(in millions)
DSW segment $ 2,352.5
$ 2,231.0
$ 2,125.3
Affiliated Business Group segment 143.6
137.7
132.5
Total DSW Inc. $ 2,496.1
$ 2,368.7
$ 2,257.8
The following table summarizes our comparable sales change by reportable segment and in total:
Fiscal
2014
2013
2012
DSW segment 1.8%
0.1%
5.7%
Affiliated Business Group segment 1.6%
1.8%
1.4%
Total DSW Inc. 1.8%
0.2%
5.5%
Fiscal 2014 vs. Fiscal 2013- Our increase in total net sales for the DSW segment was a result of an increase in comparable sales and non-comparable sales
growth. The increase in comparable sales was a result of an increase in customer traffic. DSW segment comparable sales decreased in our largest business,
women's footwear, by 1%, increased in men's footwear by 4%, increased in accessories by 10% and in athletic footwear by 5%. Our non-comparable sales
growth is attributable to both stores opened in fiscal 2013 as well as 37 new DSW stores in fiscal 2014. The increase in total net sales for our Affiliated
Business Group segment was primarily the result of comparable sales growth and the net addition of 15 new shoe departments in fiscal 2014.
Fiscal 2013 vs. Fiscal 2012- Our increase in total net sales for the DSW segment was a result of an increase in comparable sales, luxury test sales and non-
comparable sales growth. Our comparable sales calculation is based on sales for the 52 weeks ended February 1, 2014 against the 52 weeks ended February 2,
2013, and excludes luxury test sales. The increase in comparable sales was a result of an increase in conversion partially offset by a decrease in customer
traffic. DSW segment comparable sales decreased in our largest business, women's footwear by 3%, increased in both men's and accessories by 10%, and
remained flat in athletic. Our non-comparable sales growth is attributable to both stores opened in fiscal 2012 as well as our opening of 30 new DSW stores in
fiscal 2013. The increase in total net sales for our Affiliated Business Group segment was primarily the result of comparable sales growth and the net addition
of 12 new shoe departments and 9 Loehmann's locations in fiscal 2013.
Gross Profit-Gross profit is defined as net sales less cost of sales. Gross profit decreased as a percentage of net sales to 30.2% in fiscal 2014 from 31.2% in
fiscal 2013 and 32.1% in fiscal 2012. By reportable segment and in total, gross profit as a percentage of net sales was:
Fiscal
2014
2013
2012
DSW segment 30.9%
31.9%
32.8%
Affiliated Business Group segment 19.8%
20.6%
21.0%
Total DSW Inc. 30.2%
31.2%
32.1%
In fiscal 2013, DSW Inc. gross profit was negatively impacted by $16.5 million related to our luxury test, which was comprised of a sales benefit of $18.4
million offset by cost of sales of $34.9 million, which includes inventory adjustments. For DSW Inc.,
22
Source: DSW Inc., 10-K, March 26, 2015 Powered by Morningstar® Document Research℠
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