Express 2013 Annual Report Download - page 27
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Table of Contents
the costs of individual goods are raw materials, labor in the countries where our merchandise is sourced, and logistics costs associated with transporting our
merchandise.
Selling, General, and Administrative Expenses. Selling, general, and administrative expenses include all operating costs not included in cost of goods sold,
buying and occupancy costs, with the exception of any proceeds received from insurance claims and gain/loss on disposal of assets, which are included in
other operating expense, net. These costs include payroll and other expenses related to operations at our corporate home office, store expenses other than
occupancy, and marketing expenses, which include production, mailing, and print advertising costs. With the exception of store payroll and marketing, these
expenses generally do not vary proportionally with net sales. As a result, selling, general, and administrative expenses as a percentage of net sales is usually
higher in lower volume quarters and lower in higher volume quarters.
The table below sets forth the various line items in the Consolidated Statements of Income and Comprehensive Income as a percentage of net sales for the last
three years.
Net sales 100 %
100 %
100 %
Cost of goods sold, buying and occupancy costs 68 %
66 %
64 %
Gross profit 32 %
34 %
36 %
Selling, general, and administrative expenses 23 %
23 %
23 %
Other operating expense, net — %
— %
— %
Operating income 10 %
12 %
13 %
Interest expense, net 1 %
1 %
2 %
Other income, net — %
— %
— %
Income before income taxes 9 %
11 %
11 %
Income tax expense 3 %
4 %
5 %
Net income 5 %
6 %
7 %
Fiscal Year Comparisons
Net sales (in thousands) $2,219,125
$2,157,227
$2,080,459
Comparable sales 3 %
— %
6%
Comparable sales (excluding e-commerce sales) (1)%
(3)%
3%
Gross square footage at end of period (in thousands) 5,498
5,423
5,267
Number of:
Stores open at beginning of period 625
609
591
New stores 16
28
27
Closed stores (9)
(12)
(9)
Stores open at end of period 632
625
609
Net sales increased by approximately $61.9 million, or 3%. The prior year included approximately $27.0 million related to the fifty-third week in 2012.
Comparable sales increased 3% for 2013 compared to 2012. The increase in comparable sales resulted from growth in e-commerce sales and an increase in
store transactions partially offset by decreases in average dollar sales. We attribute the decrease in average dollar sales to a highly promotional retail landscape,
as a result of continued decreased traffic. Non-comparable sales decreased $0.9 million, equally driven by fewer new store openings and remodels.
Net sales increased $76.8 million from $2.1 billion in 2011 to $2.2 billion in 2012, a 4% increase, and included approximately $27.0 million related to the
fifty-third week in 2012. Comparable sales were flat for 2012 compared to 2011. For 2012,
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