Restoration Hardware 2015 Annual Report Download - page 43

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Basis of Presentation and Results of Operations
The following table sets forth our consolidated statements of income and other financial and operating data.
Year Ended
January 30, January 31, February 1,
2016 2015 2014
(dollars in thousands, excluding per square foot
store data)
Statements of Income:
N
et revenues ........................................................................... $ 2,109,006 $ 1,867,422 $ 1,550,961
Cost of goods sold .................................................................. 1,356,314 1,176,648 994,081
Gross profit ....................................................................... 752,692 690,774 556,880
Selling, general and administrative expenses ......................... 567,131 525,048 502,029
Income from operations .................................................... 185,561 165,726 54,851
Interest expense—net ............................................................. 35,677 17,551 5,733
Income before income taxes .............................................. 149,884 148,175 49,118
Income tax expense ................................................................ 58,781 57,173 30,923
Net income ........................................................................ $ 91,103 $ 91,002 $ 18,195
Other Financial and Operating Data:
Direct as a percentage of net revenues
(
1
)
................................ 49% 50 % 47%
Growth in net revenues:
Stores
(
2
)
................................................................................................................... 16% 14 % 27%
Direct ................................................................................. 10% 28 % 33%
Total .................................................................................. 13% 20 % 30%
Comparable brand revenue growth
(
3
)
..................................... 11% 20 % 31%
Retail
(
4
)
:
Retail stores open at beginning of period .......................... 67 70 71
Stores opened .................................................................... 8 3 2
Stores closed ..................................................................... 6 6 3
Retail stores open at end of period .................................... 69 67 70
Total leased square footage at end of period (in
thousands) (5) ................................................................ 1,011 861 798
Total leased selling square footage at beginning of period
(in thousands) (6) ........................................................... 607 554 501
Total leased selling square footage at end of period (in
thousands) (6) ................................................................ 725 607 554
Weighted-average leased square footage (in
thousands) (7) ................................................................ 904 821 793
Weighted-average leased selling square footage (in
thousands) (7) ................................................................ 641 572 526
Retail sales per leased selling square foot
(
8
)
..................... $ 1,463 $ 1,413 $ 1,386
Capital expenditures
(
9
)
........................................................... $ 133,460 $ 110,359 $ 93,868
(1) Direct revenues include sales through our Source Books and websites.
(2) Stores data represents retail stores plus outlet stores.
(3) Comparable brand revenue growth includes retail comparable store sales, including RH Baby & Child and RH Modern
Galleries, and direct net revenues. Comparable brand revenue growth excludes retail non-comparable store sales, closed store
sales and outlet store net revenues. Comparable store sales have been calculated based upon retail stores, excluding outlet stores,
that were open at least fourteen full months as of the end of the reporting period and did not change square footage by more than
20% between periods. If a store is closed for seven days during a month, that month will be excluded from comparable store
sales.
(4) Retail data has been calculated based upon retail stores, which includes our RH Baby & Child and RH Modern Galleries and
excludes outlet stores.
(5) Total leased square footage for fiscal 2013 and fiscal 2014 includes approximately 5,000 square feet related to one owned store
location. Total leased square footage for fiscal 2015 includes approximately 24,000 square feet related to two owned store
locations.