Express 2010 Annual Report Download - page 56

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Fiscal Year Comparisons
Net Sales
Year Ended
2010 2009 2008
Net sales (in thousands) .................... $1,905,814 $1,721,066 $1,737,010
Comparable sales percentage increase/
(decrease) ............................ 10% (4)% (3)%
Net sales per average gross square foot (a) ..... $ 346 $ 321 $ 337
Total store square footage at end of period (in
thousands) (a) ......................... 5,128 4,995 5,032
Number of:
Stores open at beginning of period ....... 573 581 587
New stores .......................... 23 7 9
Closed stores ........................ (5) (15) (15)
Stores open at end of period ............ 591 573 581
(a) Net sales per average gross square foot is determined by dividing net sales (excluding e-commerce sales,
shipping and handling revenue related to e-commerce, gift card breakage, and royalties) for the period by
average gross square feet during the period. Unless otherwise indicated, references herein to square feet
are to gross square feet, rather than net selling space.
Net sales increased from $1.721 billion in 2009 to $1.906 billion in 2010, an 11% increase. Comparable sales,
including e-commerce sales, increased by $165.3 million, or 10%, in 2010 compared to 2009. The comparable
stores sales growth was driven by an increase in transactions and growth in average dollar sales during the period
as well as the continued growth in e-commerce sales. E-commerce sales for 2010 increased by $55.3 million or
60% to $147.5 million. During 2010 we opened 18 new stores (net of store closures), which also increased our
sales in the current year but are not reflected in our comparable sales. Other revenue was $17.5 million in 2010,
an increase of $5.3 million, compared to other revenue of $12.2 million in 2009, primarily as a result of more
shipping and handling revenue related to e-commerce sales growth.
Net sales decreased from $1.737 billion in 2008 to $1.721 billion in 2009, a 1% decrease. We had 573 and 581
stores open at the end of 2009 and 2008, respectively. During 2009, we closed 8 stores (net of store openings).
Net sales per gross square foot were $321 in 2009 compared to $337 in 2008. Comparable sales, including
e-commerce sales (beginning in the second quarter of 2009) declined 4%, or $63.4 million, in 2009 as a result of
a decrease in transactions, due primarily to the decline in general economic conditions. This was partially offset
by an increase in the average dollars spent per transaction. Comparable sales performance improved from each
quarter to the next during 2009 in comparison to the same quarter in 2008, with the first quarter down 16%, or
$67.3 million, second quarter down 11%, or $41.4 million, third quarter up 2%, or $7.9 million, and fourth
quarter up 8%, or $37.5 million. Our first full year of e-commerce sales was during 2009, which generated net
sales of $92.2 million, an increase of $64.4 million compared to 2008, primarily as a result of increases in traffic
to our website since its launch in July 2008 and the fact that the website was operational for only half of 2008.
Other revenue was $12.2 million in 2009, an increase of $7.4 million, compared to other revenue of $4.8 million
in 2008 primarily as a result of shipping and handling revenue related to the increase in e-commerce sales.
Gross Profit
The following table shows cost of sales and gross profit in dollars for the stated periods:
Year Ended
2010 2009 2008
(in thousands)
Cost of goods sold, buying and occupancy
costs ................................. $1,227,490 $1,175,088 $1,280,018
Gross profit ............................. $ 678,324 $ 545,978 $ 456,992
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