Restoration Hardware 2014 Annual Report Download - page 55
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(6) Leased selling square footage is retail space at our stores used to sell our products. Leased selling square
footage excludes backrooms at retail stores used for storage, office space or similar matters, as well as
exterior sales space located outside a store, such as courtyards, gardens and rooftops. Leased selling square
footage includes approximately 4,500 square feet related to one owned store location.
(7) Average square footage (leased or leased selling, as applicable) is calculated for each quarter by taking the
total applicable square footage at the beginning of the quarter plus the total applicable square footage at the
end of the quarter and dividing by two. Average square footage for periods of six, nine and twelve months
is calculated by averaging the average square footage for the quarters within such periods.
The following table sets forth our consolidated statement of operations data as a percentage of total
revenues.
Year Ended
January 31,
2015
February 1,
2014
February 2,
2013
Statement of Operations Data:
Net revenues 100.0% 100.0% 100.0%
Cost of goods sold 63.0 64.1 63.4
Gross profit 37.0 35.9 36.6
Selling, general and administrative expenses 28.1 32.4 42.4
Income (loss) from operations 8.9 3.5 (5.8)
Interest expense 1.0 0.3 0.5
Income (loss) before income taxes 7.9 3.2 (6.3)
Income tax expense (benefit) 3.0 2.0 (5.2)
Net income (loss) 4.9% 1.2% (1.1)%
We operate a fully integrated distribution model through our stores, Source Books and websites. The
following table shows a summary of our Stores net revenues, which include all sales for orders placed in retail
stores as well as sales through outlet stores, and our Direct net revenues which include sales through our Source
Books and websites.
Year Ended
January 31,
2015
February 1,
2014
February 2,
2013
(in thousands)
Stores $ 933,179 $ 818,372 $ 643,306
Direct 934,243 732,589 549,740
Net revenues $1,867,422 $1,550,961 $1,193,046
Fiscal 2014 Compared to Fiscal 2013
Net revenues
Net revenues increased $316.5 million, or 20.4%, to $1,867.4 million in fiscal 2014 compared to $1,551.0
million in fiscal 2013. We had 67 and 70 retail stores open at January 31, 2015 and February 1, 2014,
respectively. Stores sales increased $114.8 million, or 14.0%, to $933.2 million in fiscal 2014 compared to
$818.4 million in fiscal 2013. Direct sales increased $201.6 million, or 27.5%, to $934.2 million in fiscal 2014
compared to $732.6 million in fiscal 2013. The increase in net revenues was due to a combination of the
continued strong sales of our existing product assortment, as well as the introduction of new products and the
expansion of existing product assortment, which includes additional sizes, colors and fabrics of existing
offerings. Comparable brand revenue growth was 20% in fiscal 2014 compared to 31% in fiscal 2013. The
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