DSW 2008 Annual Report Download - page 29

(8) Compara
bl
e DSW stores an
d
compara
bl
e
l
ease
dd
epartments are t
h
ose un
i
ts t
h
at
h
ave
b
een
i
n operat
i
on
f
or a
t
l
east 14 months at the be
g
innin
g
of the fiscal
y
ear. Stores or leased departments, as the case ma
y
be, are added
to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter
t
h
at t
h
ey are c
l
ose
d
.
(9) DSW tota
l
square
f
oota
g
e represents t
h
e tota
l
amount o
f
square
f
oota
g
e
f
or DSW stores on
ly
;
i
t
d
oes no
t
reflect square footage of leased departments.
(
10) Average gross square
f
ootage represents t
h
e mont
hl
y average o
f
square
f
eet
f
or DSW stores on
l
y
f
or eac
h
per
i
o
d
presente
d
an
d
consequent
ly
re
fl
ects t
h
ee
ff
ect o
f
open
i
n
g
stores
i
n
diff
erent mont
h
st
h
rou
gh
out t
he
p
eriod.
(
11) Net sales per average gross square foot is the result of dividing net sales for DSW stores only for the perio
d
presente
d
,
by
avera
g
e
g
ross square
f
oota
g
eca
l
cu
l
ate
d
as
d
escr
ib
e
di
n note 10 a
b
ove.
ITEM 7. MANA
G
EMENT’
S
DI
SCUSS
I
O
N AND ANALY
S
I
SO
F FINAN
C
IAL
CO
NDITI
O
NAN
D
RE
SU
LT
SO
F
O
PERATI
O
N
S
.
T
his management’s discussion and analysis of financial condition and results of operations contains forward-
l
oo
ki
n
g
statements t
h
at
i
nvo
l
ve r
i
s
k
san
d
uncerta
i
nt
i
es. P
l
ease see “Caut
i
onar
y
Statement” on pa
g
e4
f
or a
di
scuss
i
on o
f
t
h
e uncerta
i
nt
i
es, r
i
s
k
san
d
assum
p
t
i
ons assoc
i
ate
d
w
i
t
h
t
h
ese statements. You s
h
ou
ld
rea
d
t
he
followin
g
discussion in con
j
unction with our historical consolidated financial statements and the notes theret
o
appear
i
ng e
l
sew
h
ere
i
nt
hi
s Annua
l
Report on Form 10-K. T
h
e resu
l
ts o
f
operat
i
ons
f
or t
h
e per
i
o
d
sre
fl
ecte
dh
ere
i
n
are not necessar
ily i
n
di
cat
i
ve o
f
resu
l
ts t
h
at ma
yb
e expecte
df
or
f
uture per
i
o
d
s, an
d
our actua
l
resu
l
ts ma
y diff
e
r
m
ateriall
y
from those discussed in the forward-lookin
g
statements as a result of various factors, includin
g
but not
li
m
i
te
d
to t
h
ose
li
ste
d
un
d
er “R
i
s
k
Factors” an
di
nc
l
u
d
e
d
e
l
sew
h
ere
i
nt
hi
s Annua
l
Report on Form 10-K
.
O
verv
i
e
w
K
e
y
Financia
l
Measures
I
n evaluatin
g
our results of operations, we refer to a number of ke
y
financial and non-financial measures
r
elatin
g
to the performance of our business. Amon
g
our ke
y
financial measures are net sales, operatin
g
profit and ne
t
i
ncome. Ot
h
er measures t
h
at we use
i
neva
l
uat
i
ng our per
f
ormance
i
nc
l
u
d
e num
b
er o
f
DSW stores an
dl
ease
d
d
epartments, net sa
l
es per avera
g
e
g
ross square
f
oot
f
or DSW stores, an
d
c
h
an
g
e
i
n compara
bl
e stores sa
l
es.
Th
e
f
o
ll
ow
i
n
gd
escr
ib
es certa
i
n
li
ne
i
tems set
f
ort
hi
n our conso
lid
ate
d
statement o
fi
ncome
:
Net
S
ales.
W
e record net sales exclusive of sales tax and net of returns. For com
p
arison
p
ur
p
oses, w
e
d
e
fi
ne stores or
l
ease
dd
epartments as compara
bl
e or non-compara
bl
e. A store’s or
l
ease
dd
epartment’s sa
l
es
a
re
i
nc
l
u
d
e
di
n compara
bl
esa
l
es
if
t
h
e store or
l
ease
dd
epartment
h
as
b
een
i
n operat
i
on at
l
east 14 mont
h
sat
the be
g
innin
g
of the fiscal
y
ear. Stores and leased departments are excluded from the comparison in the quarte
r
t
h
at t
h
ey c
l
ose. Stores t
h
at are remo
d
e
l
e
d
or re
l
ocate
d
are exc
l
u
d
e
df
rom t
h
e compar
i
son
if
t
h
ere
i
s a mater
i
a
l
ch
ange
i
nt
h
es
i
ze o
f
t
h
e store or t
h
e store
i
sre
l
ocate
d
more t
h
an one m
il
e out o
fi
ts area.
C
ost of Sa
l
es
.
O
ur cost o
f
sa
l
es
i
nc
l
u
d
es t
h
e cost o
f
merc
h
an
di
se,
di
str
ib
ut
i
on an
d
ware
h
ous
i
n
g
(
includin
g
depreciation), store occupanc
y
(excludin
g
depreciation), permanent and point of sale reductions
,
markdowns and shrinkage
.
O
peratin
g
Expenses. Operat
i
ng expenses
i
nc
l
u
d
e expenses re
l
ate
d
to store management an
d
stor
e
pa
y
roll costs, advertisin
g
, leased department operations, store depreciation and amortization, pre-openin
g
a
dvertisin
g
and other pre-openin
g
costs (which are expensed as incurred), corporate expenses for bu
y
in
g
serv
i
ces,
i
n
f
ormat
i
on serv
i
ces,
d
eprec
i
at
i
on expense
f
or corporate cost centers, mar
k
et
i
ng,
l
ega
l
,
fi
nance,
o
uts
id
e
p
ro
f
ess
i
ona
l
serv
i
ces, customer serv
i
ce center ex
p
enses, a
ll
oca
bl
e costs to an
df
rom Reta
il
Ventures
a
n
d
ot
h
er corporate re
l
ate
dd
epartments an
db
ene
fi
ts
f
or assoc
i
ates an
d
re
l
ate
d
pa
y
ro
ll
taxes. Corporate
l
eve
l
expenses are primarily attributable to operations at our corporate offices in Columbus, Ohio.
2
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