DSW 2010 Annual Report Download - page 33

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Net Income. For fiscal 2010, net income increased 96.6%, compared to fiscal 2009 and represented 5.9% and
3.4% of net sales, respectively. This increase was primarily the result of an increase in gross profit partially offset by
an increase in operating expenses.
Fiscal Year Ended January 30, 2010 (Fiscal 2009) Compared to Fiscal Year Ended January 31, 2009
(Fiscal 2008)
Net Sales. Sales for fiscal 2009 increased by 9.5% from fiscal 2008. The following table summarizes the
increase in our net sales:
For the Fiscal Year Ended
January 30, 2010
(In millions)
Net sales for the fiscal year ended January 31, 2009 .................. $1,462.9
Increase in comparable store sales . . . ............................. 42.8
Net increase from non-comparable and closed store sales ............... 96.9
Net sales for the fiscal year ended January 30, 2010 .................. $1,602.6
The following table summarizes our sales by segment and in total:
January 30,
2010
January 31,
2009
For the Fiscal Years Ended
(In millions)
DSW .................................................... $1,455.0 $1,298.9
Leased departments ......................................... 147.6 164.0
Total DSW Inc. ........................................... $1,602.6 $1,462.9
The following table summarizes our comparable store sales change by segment and in total:
Fiscal Year Ended
January 30, 2010
DSW .......................................................... 4.0%
Leased departments................................................ (3.6)%
Total DSW Inc. .................................................. 3.2%
The increase in comparable store sales was primarily a result of an increase in traffic and average unit retail.
DSW segment comparable sales increased in women’s footwear by 4.9%, athletic footwear by 1.8% and accessories
by 12.6% and decreased in men’s footwear by 3.8%.
Gross Profit. Gross profit is defined as net sales less cost of sales. Gross profit increased as a percentage of
net sales from 25.9% in fiscal 2008 to 29.2% in fiscal 2009. By segment and in total, gross profit as a percentage of
net sales was:
January 30,
2010
January 31,
2009
For the Fiscal Years Ended
DSW .................................................... 30.2% 27.1%
Leased departments ......................................... 19.1% 16.6%
Total DSW Inc. ............................................ 29.2% 25.9%
The increase in DSW segment gross profit was primarily a result of an increase of 190 basis points in
merchandise margin and a decrease of 120 basis points in store occupancy expense. DSW segment merchandise
margin, gross profit excluding warehousing and store occupancy, a non-GAAP measure, for fiscal 2009 increased as
a percentage of net sales to 44.7% from 42.8% for fiscal 2008 as the result of a decrease in markdown activity. Store
occupancy expense for the DSW segment as a percentage of net sales decreased to 12.9% for fiscal 2009 from
29