Dollar Tree 2014 Annual Report Download - page 45

29
Fiscal year ended February 1, 2014 compared to fiscal year ended February 2, 2013
Net sales. Net sales increased 6.0%, or $445.8 million, in 2013 compared to 2012, resulting from sales in our new stores
and a 2.4% increase in comparable store net sales. Excluding the 53rd week in 2012, which accounted for approximately
$125.0 million of sales, net sales increased 7.9%, or $570.8 million. The comparable store net sales increase is based on the
comparable 52 weeks for both years. Comparable store net sales are positively affected by our expanded and relocated stores,
which we include in the calculation, and, to a lesser extent, are negatively affected when we open new stores or expand stores
near existing ones.
The following table summarizes the components of the changes in our store count for fiscal years ended February 1, 2014
and February 2, 2013.
February 1,
2014
February 2,
2013
New stores 343 345
Expanded or relocated stores 71 87
Closed stores (22)(25)
Of the 2.7 million selling square foot increase in 2013 approximately 0.2 million was added by expanding existing stores.
Gross profit. Gross profit margin was 35.6% in 2013 compared to 35.9% in 2012 due to loss of leverage in occupancy and
distribution cost from the 53rd week of sales in 2012.
Selling, general and administrative expenses. Selling, general and administrative expenses, as a percentage of net sales,
decreased to 23.2% for 2013 compared to 23.5% for 2012. The decrease is primarily due to lower incentive compensation
achievement in 2013 compared with 2012 and lower inventory service fees.
Operating income. Operating income margin was 12.4% in 2013 and 2012 due to the reasons noted above.
Other (income) expense, net. Other (income) expense, net in 2012 includes a $60.8 million gain on the sale of our
investment in Ollie's Holdings, Inc.
Income taxes. Our effective tax rate was 37.5% in 2013 compared to 36.7% in 2012. The rate increase is the result of
statute expirations and the settlement of state tax audits in 2012.
Liquidity and Capital Resources
Our business requires capital to build and open new stores, expand our distribution network and operate and expand
existing stores. Our working capital requirements for existing stores are seasonal and usually reach their peak in September
and October. Historically, we have satisfied our seasonal working capital requirements for existing stores and have funded our
store opening and distribution network expansion programs from internally generated funds and borrowings under our credit
facilities.
The following table compares cash-flow related information for the years ended January 31, 2015, February 1, 2014 and
February 2, 2013:
Year Ended
January 31, February 1, February 2,
(in millions) 2015 2014 2013
Net cash provided by (used in):
Operating activities $ 926.8 $ 794.1 $ 678.3
Investing activities (315.0)(325.0)(261.9)
Financing activities (14.6)(597.8)(303.4)
Net cash provided by operating activities increased $132.7 million in 2014 compared to 2013 due primarily to an increase
in accrued expenditures related to the Family Dollar acquisition and a decrease in cash used to purchase merchandise
inventories.