Macy's 2014 Annual Report Download - page 26

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21
Results of Operations
2014 2013 2012 *
Amount % to
Sales Amount % to
Sales Amount % to
Sales
(dollars in millions, except per share figures)
Net sales....................................................................... $ 28,105 $ 27,931 $ 27,686
Increase in sales........................................................ 0.6 % 0.9 %
Increase in comparable sales.................................... 0.7 % 1.9 %
Cost of sales................................................................. (16,863)(60.0) % (16,725)(59.9) % (16,538)(59.7) %
Gross margin................................................................ 11,242 40.0 % 11,206 40.1 % 11,148 40.3 %
Selling, general and administrative expenses .............. (8,355)(29.7) % (8,440)(30.2) % (8,482)(30.7) %
Impairments, store closing and other costs.................. (87)(0.3) % (88)(0.3) % (5) — %
Operating income......................................................... 2,800 10.0 % 2,678 9.6 % 2,661 9.6 %
Interest expense - net ................................................... (393)(388)(422)
Premium on early retirement of debt ........................... (17) — (137)
Income before income taxes ........................................ 2,390 2,290 2,102
Federal, state and local income tax expense................ (864)(804)(767)
Net income................................................................... $ 1,526 5.4 % $ 1,486 5.3 % $ 1,335 4.8 %
Diluted earnings per share ........................................... $ 4.22 $ 3.86 $ 3.24
Supplemental Non-GAAP Financial Measures
Increase in comparable sales on an owned plus
licensed basis............................................................ 1.4 % 2.8 % 4.0 %
Operating income, excluding certain items ................. $ 2,887 10.3 % $ 2,766 9.9 % $ 2,666 9.6 %
Diluted earnings per share, excluding certain items.... $ 4.40 $ 4.00 $ 3.46
Adjusted EBITDA as a percent to net sales................. 14.0 % 13.6 % 13.4 %
ROIC............................................................................ 22.4 % 21.5 % 21.2 %
See pages 17 to 20 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......................................................... 823 840 841
Square footage (in millions)..................................... 147.4 150.1 150.6
___________________
* 53 weeks