DSW 2015 Annual Report Download - page 25

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Table of Contents
The following table summarizes our comparable sales change by reportable segment and in total:
Fiscal
2015
2014
2013
DSW segment 0.8%
1.8%
0.1%
ABG segment 1.7%
1.6%
1.8%
Total DSW Inc. 0.8%
1.8%
0.2%
Fiscal 2015 vs. Fiscal 2014- Our increase in total net sales for the DSW segment was the result of an increase in comparable sales and non-comparable sales
growth. Our comparable sales increase includes a 22% increase in digitally demanded sales. DSW segment comparable sales decreased in our largest business,
women's footwear, by 2%, increased in men's footwear by 2%, increased in athletic footwear by 13%, and decreased in accessories by 2%. Our non-
comparable sales growth is attributable to stores opened in fiscal 2014, as well as 37 net new DSW stores in fiscal 2015. The increase in total net sales for our
Affiliated Business Group segment was primarily the result of comparable sales growth and the net addition of eight new shoe departments in fiscal 2015.
Fiscal 2014 vs. Fiscal 2013- Our increase in total net sales for the DSW segment was the result of an increase in comparable sales and non-comparable sales
growth. The increase in comparable sales was a result of an increase in customer traffic. DSW segment comparable sales decreased in our largest business,
women's footwear, by 1%, increased in men's footwear by 4%, increased in accessories by 10% and in athletic footwear by 5%. Our non-comparable sales
growth is attributable to stores opened in fiscal 2013, as well as 37 new DSW stores in fiscal 2014. The increase in total net sales for our Affiliated Business
Group segment was primarily the result of comparable sales growth and the net addition of 15 new shoe departments in fiscal 2014.
Gross profit is defined as net sales less cost of sales. Gross profit decreased as a percentage of net sales to 29.3% in fiscal 2015 from 30.2% in
fiscal 2014 and 31.2% in fiscal 2013. By reportable segment and in total, gross profit as a percentage of net sales was:
Fiscal
2015
2014
2013
DSW segment 30.0%
30.9%
31.9%
ABG segment 18.6%
19.8%
20.6%
Total DSW Inc. 29.3%
30.2%
31.2%
In fiscal 2013, DSW Inc. gross profit was negatively impacted by $16.5 million related to our luxury test, which was comprised of a sales benefit of $18.4
million offset by cost of sales of $34.9 million, which include inventory adjustments. For DSW Inc., the reconciliation of gross profit excluding our luxury
test was:
Fiscal
2015
2014
2013
(in thousands)
(as a percentage
of net sales)
(in thousands)
(as a percentage
of net sales)
(in thousands)
(as a percentage of
net sales)
DSW Inc. gross profit $ 768,369
29.3%
$ 755,021
30.2%
$ 739,287
31.2 %
Less: impact of the luxury test —
—%
—
—%
(16,481)
(1.0)%
DSW Inc. gross profit excluding luxury
test $ 768,369
29.3%
$ 755,021
30.2%
$ 755,768
32.2 %
21
Source: DSW Inc., 10-K, March 24, 2016 Powered by Morningstar® Document Research℠
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