DSW 2013 Annual Report Download - page 29

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Table of Contents
The following table summarizes our net sales by reportable segment and in total:
Fiscal years ended
February 2, 2013
January 28, 2012
(in millions)
DSW segment $2,125.3
$1,871.9
Affiliated Business Group segment 132.5
152.4
Total DSW Inc. $2,257.8
$2,024.3
The following table summarizes our comparable sales change by reportable segment and in total:
Fiscal year ended February
2, 2013
DSW segment 5.7%
Affiliated Business Group segment 1.4%
Total DSW Inc. 5.5%
Our increase in total net sales for the DSW segment was a result of both comparable, non-comparable sales growth and an additional week of sales. Our
comparable sales calculation is based on sales for the 52 weeks ended January 26, 2013 against the 52 weeks ended January 28, 2012. The increase in
comparable sales was a result of an increase in traffic, conversion and average unit retail. For the DSW segment, all merchandise categories had positive
comparable sales. DSW segment comparable sales increased in women's footwear by 4%, men's by 9%, athletic by 6% and accessories by 9%. Our non-
comparable sales growth is attributable to both stores opened in fiscal 2011 as well as our net increase of 38 DSW stores in fiscal 2012.
The decrease in total net sales for our Affiliated Business Group segment was the result of the bankruptcy of Filene's Basement in fiscal 2011 and the resulting
closure of its 27 stores.
Gross Profit. Gross profit is defined as net sales less cost of sales. Gross profit decreased as a percentage of net sales to 32.1% in fiscal 2012 from 32.3% in
fiscal 2011. By reportable segment and in total, gross profit as a percentage of net sales was:
Fiscal years ended
February 2, 2013
January 28, 2012
DSW segment 32.8%
33.4%
Affiliated Business Group segment 21.0%
19.4%
Total DSW Inc. 32.1%
32.3%
For the DSW segment, the reconciliation of components of gross profit as a percentage of net sales was:
Fiscal years ended
February 2, 2013
January 28, 2012
DSW segment gross profit 32.8%
33.4%
Store occupancy expense 10.0%
10.2%
Distribution and fulfillment expenses 2.0%
1.9%
DSW segment merchandise margin 44.8%
45.5%
For the DSW segment, total gross profit decreased 60 basis points as a result of a decrease in merchandise margin and an increase in distribution and
fulfillment expenses, partially offset by a decrease in store occupancy expense. DSW segment merchandise margin, defined as gross profit excluding
occupancy and distribution and fulfillment expenses, a non-GAAP measure, was 44.8% and 45.5% as a percentage of net sales for fiscal 2012 and fiscal
2011, respectively, primarily due to an increase in markdown activity related to clearance markdowns to position inventory mix to sales demand. Store
occupancy expense for the DSW segment decreased as a percentage of net sales to 10.0% for fiscal 2012 from 10.2% for fiscal 2011 primarily as a result of
increased average store sales and the 53rd week. Distribution and fulfillment expenses increased as a percentage of net sales to 2.0% for fiscal 2012 from 1.9%
for fiscal 2011 primarily due to incremental expenses to support
25
Source: DSW Inc., 10-K, March 27, 2014 Powered by Morningstar® Document Research℠
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