DSW 2015 Annual Report Download - page 47

Table of Contents
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 DSW Inc. and its wholly owned subsidiaries are herein referred to collectively as DSW Inc. or the “Company”. DSW refers to the DSW
segment, which includes DSW stores and dsw.com. DSW Class A Common Shares are listed on the New York Stock Exchange under the ticker symbol
“DSW”. DSW Class B Common Shares are not listed on a stock exchange but are exchangeable for Class A Common Shares at the election of the shareholder.
DSW Inc. has two reportable segments: the DSW segment and the Affiliated Business Group ("ABG") segment. DSW offers a wide assortment of brand name
dress, casual and athletic footwear and accessories for women, men and children. As of January 30, 2016, DSW operated a total of 468 stores located in 42
states, the District of Columbia and Puerto Rico, and dsw.com. During fiscal 2015, 2014 and 2013, DSW opened 40, 37 and 30 new DSW stores, respectively,
and during fiscal 2015, closed 3 DSW stores.
DSW separates its merchandise into four primary categories: women's footwear; men's footwear; athletic footwear; and accessories and other (which includes
kids' footwear). The following table sets forth the approximate percentages of DSW segment sales attributable to each merchandise category for the fiscal
years below:
Fiscal
Category
2015
2014
2013
Women's footwear
59%
61%
62%
Men's footwear
18%
18%
17%
Athletic footwear
14%
12%
12%
Accessories and Other
9%
9%
9%
DSW Inc., through its ABG segment, also partners with three other retailers to help build and optimize their footwear businesses. As of January 30, 2016, ABG
supplied merchandise to 276 Stein Mart stores and Steinmart.com, 102 Gordmans stores and Gordmans.com, and one Frugal Fannie’s store. During fiscal
2015, 2014 and 2013, ABG added 16, 27 and 18 new shoe departments, respectively, and ceased operations in 8, 12 and 6 shoe departments, respectively.
Affiliated Business Group segment sales represented 5.7%, 5.8% and 5.8% of total DSW Inc. net sales for fiscal 2015, 2014 and 2013, respectively.
DSW Inc. also has an equity investment in Town Shoes Limited ("Town Shoes"). Town Shoes is the market leader in branded footwear in Canada. As of
January 30, 2016, Town Shoes operated 185 locations across Canada, primarily under The Shoe Company, Shoe Warehouse, Town Shoes and DSW banners,
as well as an e-commerce site. As of January 30, 2016, there are 13 DSW Designer Shoe Warehouse stores in Canada operated under a licensing agreement.
See Note 5 for additional disclosure on the licensing agreement.
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 DSW Inc.’s fiscal year ends on the Saturday nearest to January 31. The periods presented in these financial statements are the fiscal years ended
January 30, 2016 ("fiscal 2015"), January 31, 2015 ("fiscal 2014") and February 1, 2014 ("fiscal 2013"). Fiscal 2015, 2014 and 2013 each consisted of 52
weeks. Unless otherwise stated, references to years in this report relate to fiscal years rather than calendar years.
 The preparation of financial statements in conformity with accounting principles generally accepted in the United States ("GAAP") requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Significant estimates are required as a part of
inventory valuation, depreciation, amortization, customer loyalty program reserve, recoverability of long-lived assets and intangible assets, litigation
reserves, exit and disposal obligations and establishing reserves for self-insurance. Although these estimates are based on management’s knowledge of
current events and actions it may undertake in the future, actual results could differ from these estimates.
 The consolidated financial statements include the accounts of DSW Inc. and its wholly owned subsidiaries. All intercompany
accounts and transactions have been eliminated in consolidation. All amounts are in United States Dollars ("USD"), unless otherwise noted.
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Source: DSW Inc., 10-K, March 24, 2016 Powered by Morningstar® Document Research℠
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