Macy's 2014 Annual Report Download - page 21

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16
2014 Highlights
The Company had its sixth consecutive year of improved financial performance in 2014 and attained its long-term
profitability target. These improvements have been driven by successful implementation of the Company's key strategies.
Selected highlights of 2014 include:
• Comparable sales on an owned basis increased 0.7% and comparable sales on an owned plus licensed basis
increased 1.4%. These measures represent the fifth consecutive year of growth.
• Operating income for fiscal 2014 was $2.887 billion or 10.3% of sales, excluding impairments, store closing and
other costs, an increase of 4.4% and 40 basis points as a percent of sales over 2013 on a comparable basis.
• Diluted earnings per share, excluding certain items, grew 10% to $4.40 in 2014.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, impairments, store closing and
other costs) as a percent to net sales reached 14% in 2014, the Company's long term target rate. Achieving this
target represents significant progress over the past six years since the Company adopted a unified organizational
structure, omnichannel initiatives and market localization in 2009.
• Return on invested capital ("ROIC"), a key measure of operating productivity, reached 22.4%, 90 basis points
higher than 2013 and continued an improvement trend over the past five years.
• The Company repurchased 31.9 million shares of its common stock for $1,900 million in 2014, and increased its
annualized dividend rate to $1.25 per share. This annualized dividend rate represents an increase of 25% and is
the fourth increase in the dividend in the past three years.
See pages 17 to 20 for reconciliations of the non-GAAP financial measures presented above to the most comparable GAAP
financial measures and other important information.