Rue 21 2012 Annual Report Download - page 33

Download and view the complete annual report

Please find page 33 of the 2012 Rue 21 annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 76

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76

Fiscal Year Ended
February 2,
2013
January 28,
2012
January 29,
2011
Net Sales ............................................ 100.0% 100.0% 100.0%
Cost of goods sold ..................................... 61.7% 62.3% 63.0%
Gross profit .......................................... 38.3% 37.7% 37.0%
Selling, general and administrative expenses ................ 27.1% 25.9% 25.7%
Depreciation and amortization expense ..................... 3.7% 3.5% 3.5%
Income from operations ................................. 7.6% 8.3% 7.9%
Interest (Income) expense, net ............................ 0.0% 0.0% 0.0%
Income before income taxes ............................. 7.6% 8.3% 7.8%
Provision for income taxes .............................. 2.7% 3.1% 3.1%
Net income ........................................... 4.9% 5.1% 4.8%
Note 1 — Except for the fiscal year ended February 2, 2013, which includes 53 weeks, all fiscal years presented
include 52 weeks.
Note 2 — The comparable sales increase for the period ended February 2, 2013 is compared to the corresponding
52 week period in fiscal year 2011. The extra week in fiscal year 2012 has been excluded from the comparable store
sales calculation.
The following table summarizes the number of stores open at the beginning of the period and at the end of the
period.
2012 2011 2010
Stores at beginning of period ........................................... 755 638 535
Stores opened during period ............................................ 125 120 105
Stores closed during period ............................................. (3) (3) (2)
Stores at end of period ................................................ 877 755 638
Fiscal Year 2012 Compared to Fiscal Year 2011
Net Sales
In fiscal year 2012 (53 weeks), our net sales increased 18.6%, or $141.6 million, to $901.9 million from
$760.3 million in fiscal year 2011 (52 weeks). This increase in net sales was due to an increase of approximately
12.6% in the number of transactions and an increase in the average dollar transaction of approximately 5.5%. The
average dollar value of transactions increased due to a higher average unit retail and slight increase in units per
transaction. In fiscal year 2012, the 53rd week contributed $11.3 million in total sales. During fiscal year 2012, we
opened 125 new stores and closed three stores compared to 120 new stores and three store closures in fiscal year
2011. Our comparable store sales increased 0.7% in fiscal year 2012 compared to an increase of 0.4% in fiscal year
2011. There were 724 comparable stores and 153 non-comparable stores open at February 2, 2013 compared to 611
and 144, respectively, at January 28, 2012.
In fiscal year 2012, net sales of girls apparel, girls accessories and guys apparel and accessories represented
57.5%, 23.6% and 18.9%, respectively, of total net sales compared to 56.6%, 25.0% and 18.4%, respectively, for
fiscal year 2011. For fiscal year 2012, the girls apparel, girls accessories and guys apparel and accessories categories
grew by approximately 20.5%, 12.2% and 22.0%, respectively, as compared to fiscal year 2011.
Gross Profit
Gross profit increased 20.5%, or $58.9 million, in fiscal year 2012 to $345.5 million from $286.6 million in
fiscal year 2011. Gross margin increased 60 basis points to 38.3% for fiscal year 2012 from 37.7% for fiscal year
29