Macy's 2015 Annual Report Download - page 27

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22
Results of Operations
2015 2014 2013
Amount
% to
Sales Amount
% to
Sales Amount
% to
Sales
(dollars in millions, except per share figures)
Net sales....................................................................... $ 27,079 $ 28,105 $ 27,931
Increase (decrease) in sales ...................................... (3.7) % 0.6 % 0.9 %
Increase (decrease) in comparable sales................... (3.0) % 0.7 % 1.9 %
Cost of sales ................................................................. (16,496)(60.9) % (16,863)(60.0) % (16,725)(59.9) %
Gross margin................................................................ 10,583 39.1 % 11,242 40.0 % 11,206 40.1 %
Selling, general and administrative expenses .............. (8,256)(30.5) % (8,355)(29.7) % (8,440)(30.2) %
Impairments, store closing and other costs.................. (288)(1.1) % (87)(0.3) % (88)(0.3) %
Operating income......................................................... 2,039 7.5 % 2,800 10.0 % 2,678 9.6 %
Interest expense - net ................................................... (361)(393)(388)
Premium on early retirement of debt ........................... —(17) —
Income before income taxes ........................................ 1,678 2,390 2,290
Federal, state and local income tax expense ................ (608)(864)(804)
Net income................................................................... 1,070 1,526 1,486
Net loss attributable to noncontrolling interest............ 2 — —
Net income attributable to
Macy's, Inc. shareholders ......................................... $ 1,072 4.0 % $ 1,526 5.4 % $ 1,486 5.3 %
Diluted earnings per share attributable to
Macy's, Inc. shareholders ......................................... $ 3.22 $ 4.22 $ 3.86
Supplemental Non-GAAP Financial Measures
Increase (decrease) in comparable sales on
an owned plus licensed basis.................................... (2.5) % 1.4 % 2.8 %
Operating income, excluding certain items ................. $ 2,327 8.6 % $ 2,887 10.3 % $ 2,766 9.9 %
Diluted earnings per share attributable to
Macy's, Inc. shareholders, excluding
certain items ............................................................. $ 3.77 $ 4.40 $ 4.00
Adjusted EBITDA as a percent to net sales................. 12.5 % 14.0 % 13.6 %
ROIC............................................................................ 20.1 % 22.4 % 21.5 %
See pages 18 to 21 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 ......................................................... 870 823 840
Square footage (in millions)..................................... 141.9 147.4 150.1