Saks Fifth Avenue 2008 Annual Report Download - page 24

RESULTS OF OPERATIONS
The following table sets forth, for the periods indicated, selected items from the Company’s consolidated
statements of income, expressed as percentages of net sales (numbers may not total due to rounding):
Year Ended
January 31,
2009
February 2,
2008
February 3,
2007
Net sales ..................................................... 100% 100% 100%
Cost of sales (excluding depreciation and amortization) ................ 68.1 61.2 61.6
Gross margin .............................................. 31.9 38.8 38.4
Selling, general and administrative expenses ......................... 25.4 25.7 27.7
Other operating expenses ........................................ 10.6 9.8 10.8
Impairments and dispositions ..................................... 0.4 0.1 0.4
Operating income (loss) ..................................... (4.5) 3.2 (0.5)
Interest expense ............................................... (1.3) (1.3) (1.7)
Gain (loss) on extinguishment of debt .............................. 0.0 (0.2) 0.0
Other income, net .............................................. 0.2 0.8 1.0
Income (loss) from continuing operations before income taxes ....... (5.6) 2.5 (1.3)
Provision (benefit) for income taxes ............................... (1.5) 0.9 (1.1)
Income (loss) from continuing operations ....................... (4.1) 1.6 (0.1)
Discontinued operations:
Income (loss) from discontinued operations ......................... (1.7) (0.2) 6.5
Provision (benefit) for income taxes ............................... (0.7) (0.1) 4.5
Income (loss) from discontinued operations ..................... (1.1) (0.1) 2.0
Net income (loss) .............................................. (5.1)% 1.5% 1.9%
FISCAL YEAR ENDED JANUARY 31, 2009 (“2008”) COMPARED TO FISCAL YEAR ENDED
FEBRUARY 2, 2008 (“2007”)
DISCUSSION OF OPERATING INCOME (LOSS) — CONTINUING OPERATIONS
The following table shows the changes in operating income (loss) from 2007 to 2008:
(In Millions)
Total
Company
2007 Operating Income — Continuing Operations ....................................... $102.9
Store sales and margin ................................................................ (284.6)
Operating expenses .................................................................. 53.2
Impairments and dispositions .......................................................... (6.9)
Change ........................................................................ (238.3)
2008 Operating Loss — Continuing Operations .......................................... $(135.4)
For the year ended January 31, 2009, the Company’s operating loss totaled $135.4 million, a 770 basis point
decrease from operating income of $102.9 million in the same period last year. Operating loss was driven by a
6.1% decrease in comparable store sales and a gross margin rate decline of 690 basis points for the year ended
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