Macy's 2013 Annual Report Download - page 25

Table of Contents
Results of Operations
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Net sales
$27,931
$27,686
$26,405
Increase in sales
0.9 %
4.9 %
Increase in comparable sales
1.9 %
3.7 %
Cost of sales
(16,725)
(59.9)%(16,538)
(59.7)%(15,738)
(59.6)%
Gross margin
11,206
40.1 %11,148
40.3 %10,667
40.4 %
Selling, general and administrative expenses
(8,440)
(30.2)%(8,482)
(30.7)%(8,281)
(31.4)%
Impairments, store closing and other costs
and gain on sale of leases
(88)
(0.3)%(5)
—%25
0.1 %
Operating income
2,678
9.6 %2,661
9.6 %2,411
9.1 %
Interest expense - net
(388)
(422)
(443)
Premium on early retirement of debt
—
(137)
—
Income before income taxes
2,290
2,102
1,968
Federal, state and local income tax expense
(804)
(767)
(712)
Net income
$1,486
5.3 %$ 1,335
4.8 %$1,256
4.8 %
Diluted earnings per share
$ 3.86
$3.24
$2.92
Supplemental Non-GAAP Financial Measures
Comparable sales growth including the impact
of growth in comparable sales of departments licensed to third
parties
2.8 %
4.0 %
5.7 %
Operating income, excluding certain items
$2,766
9.9 %$2,666
9.6 %$2,386
9.0 %
Diluted earnings per share, excluding certain items
$4.00
$3.46
$ 2.88
Adjusted EBITDA as a percent to net sales
13.6 %
13.4 %
13.1 %
ROIC
21.5 %
21.2 %
19.7 %
See pages 16 to 19 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
840
841
842
Square footage (in millions)
150.1
150.6
151.9
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* 53 weeks
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