Macy's 2012 Annual Report Download - page 24

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19
Results of Operations
2012 * 2011 2010
Amount % to
Sales Amount % to
Sales Amount % to
Sales
(dollars in millions, except per share figures)
Net sales........................................................................... $27,686 $26,405 $25,003
Increase in sales ........................................................... 4.9 % 5.6 %
Increase in comparable sales........................................ 3.7 % 5.3 %
Cost of sales..................................................................... (16,538)(59.7) % (15,738)(59.6) % (14,824)(59.3) %
Gross margin.................................................................... 11,148 40.3 % 10,667 40.4 % 10,179 40.7 %
Selling, general and administrative expenses.................. (8,482)(30.7) % (8,281)(31.4) % (8,260)(33.0) %
Impairments, store closing costs and
gain on sale of leases................................................... (5) — % 25 0.1 % (25)(0.1) %
Operating income ............................................................ 2,661 9.6 % 2,411 9.1 % 1,894 7.6 %
Interest expense - net....................................................... (422)(443)(508)
Premium on early retirement of debt............................... (137) — (66)
Income before income taxes............................................ 2,102 1,968 1,320
Federal, state and local income tax expense.................... (767)(712)(473)
Net income....................................................................... $ 1,335 4.8 % $ 1,256 4.8 % $ 847 3.4 %
Diluted earnings per share............................................... $ 3.24 $ 2.92 $ 1.98
Supplemental Non-GAAP Financial Measures
Operating income, excluding certain items..................... $ 2,666 9.6 % $ 2,386 9.0 % $ 1,919 7.7 %
Diluted earnings per share, excluding certain items........ $ 3.46 $ 2.88 $ 2.11
Adjusted EBITDA as a percent to net sales..................... 13.4 % 13.1 % 12.3 %
ROIC................................................................................ 21.2 % 19.7 % 17.4 %
See pages 16 to 18 for a reconciliation of these non-GAAP financial measures to their most comparable GAAP financial
measure and for other important information.
Store information (at year-end):
Stores operated............................................................. 841 842 850
Square footage (in millions)......................................... 150.6 151.9 154.2
___________________
* 53 weeks