Retail Report Card

Staff -- Home Textiles Today, 8/9/2004

CHANGES

For the third year, the HTT Retail Report Card uses new terminology to describe the channels of distribution, reflecting retailing in the 21st century and organizing formats in a hierarchy based on pricing. In place of the traditional discounter category, you'll find all-the-time-low price, reflecting what so-called discounters really do. Then there are off-price retailers, that actually discount the goods seen at full-price department stores. In place of department stores are full-price retailers, followed by mid-price retailers, like Sears, Penney and Kohl's, replacing what used to be called national chains. A new direct-to-consumer category reflects that mail-order has been supplanted by the Internet. Specialty stores, fabric and decorating chains, and warehouse clubs retain their titles. Within these categories, a number of changes have taken place. Lillian Vernon, under new ownership, is no longer a publicly reporting company, and has been dropped from the direct-to-consumer category. Value City Department Stores has been succeeded in the all-the-time-low-price category by its parent company, Retail Ventures. A relatively new channel of distribution to the Report Card is home improvement, reflecting the importance of this channel to home textiles. Included are Home Depot and Lowe's.

METHODOLOGY

This year's edition of the HTT Retail Report Card is based on data from public documents and was computed by senior research specialist Janice Chamberlain and database coordinator Cynthia Myers.

Formulas used include:

— Profit margin: also known as net return on sales, it is figured by dividing net income by net sales.

— Return on equity: net income divided by shareholder equity.

— Gross margin: net sales minus cost of goods sold divided by net sales.

— SG&A as a percentage of sales: selling, general and administrative expenses divided by net sales.

— Net debt coverage: net interest expense divided by operating income.

— Operating income: net sales minus cost of goods sold and selling, general and administrative expenses.

— Inventory turns: cost of goods sold divided by the average of beginning and ending inventories.

— Operating return on sales: also known as operating margin, it is calculated by dividing operating income by net sales.

The HTT Retail Report Card was compiled under the direction of business editor Don Hogsett and director of market research Kay Anderson.

Sales per square foot

		2003	2002
1.	Williams-Sonoma	$1,050	$1,002
2.	Restoration Hardware	646	581
3.	The Bombay Company	322	296
4.	TJX	280	282
5.	Target	248	242
6.	Bed Bath & Beyond	219	212
7.	Factory 2-U Stores	166	167
8.	Dollar General	152	148
9.	Gottschalks	149	148
10.	Big Lots	144	NA
11.	The Bon Ton	132	NA
12.	Hancock Fabrics	87	88

Retail sales fly, profits soar, in 2003

STORE	FISCAL YEAR END	NET INCOME ($000)	% CHANGE '02-'03	% CHANGE '99-'03	PROFIT MARGIN	RETURN ON EQUITY	NET SALES ($000)	% CHANGE '02-'03	% CHANGE '99-'03	SAME-STORE SALES % CHG	GROSS MARGIN %	SG&A/SALES	NET DEBT COVERAGE	INVENTORY TURNS
		PROFITABILITY MEASURES					SALES				OPERATIONS
ALL-THE-TIME-LOW-PRICE
Wal-Mart	1/31/2004	$9,054,000¹	13.8%¹	70.1%	3.5%	20.8%	256,329,0002	11.6%²	64.1%	4.0%	22.5%	17.5%	6.6%	7.8x
Target	1/31/2004	1,841,000	11.3	60.9	3.9	16.6	46,781,0003	9.5³	40.9³	-2.9	32.0	22.9	13.0	6.3x
Kmart⁴	1/28/2004	(614,000)⁵	—⁶	—⁷	-2.6	-28.0	23,253,000	-20.8	-31.5	-9.5	23.3	21.5	39.6	4.4x
Dollar General	1/30/2004	301,000⁸	13.6⁹	61.2	4.4	19.1	6,871,992	12.6	76.8	4.0	29.4	21.8	6.0	4.3x
Family Dollar	8/30/2003	247,475	14.1	76.7	5.2	18.9	4,750,171	14.1	72.7	3.8	33.8	25.6	—	3.9x
ShopKo Stores	1/31/2004	39,120	—¹⁰	-61.7¹¹	1.2	6.6	3,184,088¹²	-1.712	4.512	-1.6	25.7	20.3	22.0	4.2x
Retail Ventures	1/31/2004	(4,446)¹³	—¹³	—	-0.2	-2.1	2,594,206¹⁴	5.9¹⁴	55.3¹⁴	1.2	38.6	37.7	151.7	3.9x
MEDIAN			13.7	61.2				9.5	55.3	1.2	29.4	21.8	17.5	4.3x
FULL-PRICE
Federated Dept. Stores	1/31/2004	$693,000	-15.3%¹⁵	-12.8%¹⁶	4.5%	11.7%	$15,264,000	-1.1%	-4.8%	-0.9%	40.4%	31.6%	19.2%	2.8x
May Dept. Stores	1/31/2004	434,000¹⁷	-19.9¹⁷	-53.2	3.3	10.4	13,343,000	-1.1	-1.6	-2.8	29.7	20.1	24.9	3.4x
Dillard's	1/31/2004	9,344¹⁸	—18	-94.3	0.1	0.4	7,598,934¹⁹	-3.9¹⁹	-12.4²⁰	-4.0	32.0	27.6	54.7	5.9x
Saks	1/31/2004	82,827²¹	241.6²²	-56.3²³	1.4	3.6	6,055,055	2.4	-5.9	1.6	37.9	24.4	13.5	2.7x
Belk	1/31/2004	111,547²⁴	32.8²⁵	56.7²⁶	4.9	11.5	2,264,907	1.0	5.9	-0.9	33.5	24.9	19.1	3.1x
The Bon Ton	1/31/2004	20,601	114.5	112.1²¹⁷	2.2	8.6	926,409²⁸	29.9²⁸	30.3	-2.0	36.4	29.7	14.5	2.9x
Gottschalks	1/31/2004	1,870²⁹	—³⁰	-71.8³¹	0.3	1.7	660,574³²	-0.832	22.032	-0.7	34.1	30.9	62.6	2.7x
MEDIAN			32.8	-53.2				1.0	-1.6	-0.9	34.1	27.6	19.2	2.9x
MID-PRICE
Sears, Roebuck	1/3/2004	$3,397,000³³	146.9%³⁴	133.8%	9.3%	53.1%	$36,372,000³⁵	1.9%³⁵	7.8%³⁶	-2.7%	27.9%	25.0%	99.5%	5.0x
J.C.Penney³⁷	1/31/2004	(953,000)³⁸	—³⁹	—	-5.4	-17.6	17,786,000	0.9	-7.7⁴⁰	0.9	37.2	32.8	33.0	3.6x
Kohl's	1/31/2004	591,152	-8.1	129.0	5.7	14.1	10,282,094	12.7	125.6	-1.6	33.0	20.3	5.6	4.3x
MEDIAN			69.4	131.4				1.9	125.6	-1.6	33.0	25.0	33.0	4.3x
OFF-PRICE
TJX⁴¹	1/31/2004	$658,365	13.8%	26.2%⁴⁰²	4.9%	42.4%	$13,327,938	11.2%	51.5%	1.0%	24.4%	16.2%	2.5%	5.7x
Big Lots	1/31/2004	81,175⁴³	6.0	-15.5⁴⁴	1.9	7.3	4,174,383	7.9	42.3	3.4	41.8	38.7	11.8	3.0x
Ross Stores	1/31/2004	228,102	13.4	52.0	5.8	30.2	3,920,583	11.0	58.8	1.0	25.6	16.0	—	3.7x
Stein Mart	1/31/2004	2,201⁴⁵	-89.4⁴⁵	-81.4⁴⁵	0.2	1.0	1,355,457	-3.3	31.8	-4.7	25.1	25.5	-33.1	3.5x
Tuesday Morning	12/31/2003	53,661⁴⁶	21.7	213.5⁴⁷	6.5	40.6	822,646	12.9	68.3	2.9	37.6	25.5	9.2	3.7x
Factory 2-U Stores⁴⁸	1/31/2004	(85,859)⁴⁹	—⁵⁰	—⁵¹	-17.4	344.4	493,297	-7.8	17.1	-4.4	31.1	36.7	-13.4	9.7x
MEDIAN			13.4	26.2				9.5	46.9	1.0	28.4	25.5	2.5	3.7x
SPECIALTY STORE
Bed Bath & Beyond	2/28/2004	$399,470	32.2%	204.4%	8.9%	20.1%	$4,477,981	22.2%	141.1%	6.3%	41.9%	27.6%	—%	2.7x
Williams-Sonoma	2/1/2004	157,211	26.4	130.9⁵²	5.7	19.5	2,754,368	16.7	88.7	4.0	40.3	31.1	—	4.5x
Linens 'n Things	1/3/2004	74,825	8.1	43.8	3.1	9.8	2,395,272	9.6	84.2	1.3	40.3	35.2	0.7	2.2x
Pier 1 Imports	2/28/2004	118,001	-8.8	15.9	6.3	17.3	1,868,243	6.5	51.8	0.0	41.8	29.1	—	6.5x
The Bombay Company	1/31/2004	9,951	37.9	35.5	1.7	5.2	596,435	20.7	51.9	13.0	29.4	26.6	2.7	3.5x
Restoration Hardware	1/31/2004	(2,941)⁵³	—⁵⁴	—⁵⁵	-0.7	-2.9	438,508	9.5	46.7	5.2	30.2	30.8	-83.2	3.1x
MEDIAN			26.4	43.8				13.2	68.1	4.6	40.3	30.0	0.7	3.3x
WAREHOUSE CLUB
Costco	8/31/2003	$721,000⁵⁶	3.0%⁵⁶	81.5%⁵⁶	1.7%	11.0%	$41,692,699⁵⁷	9.7%⁵⁷	54.6%57	5.0%	10.7%	9.8%	—%	11.5x
BJ's	1/31/2004	102,866⁵⁸	-21.4⁵⁸	-7.5⁵⁹	1.6	12.1	6,584,808⁶⁰	14.9⁶⁰	62.460	7.8	8.1	7.6	0.2	9.0x
MEDIAN			-9.2	37.0				12.3	58.5	6.4	9.4	8.7	0.2	10.3x
FABRIC & DECORATING
Jo-Ann Stores	1/31/2004	$41,000⁶¹	-8.7%⁶²	60.2%	2.4%	11.8%	$1,743,100	3.6%	26.2%	3.6%	47.0%	38.2%	11.8%	2.4x
Hancock Fabrics	2/1/2004	17,428	-11.7	159.6	3.9	13.2	443,605	1.2	16.3	1.2	51.5	43.8	1.5	1.4x
MEDIAN			-10.2	109.9				2.4	21.3	2.4	49.3	41.0	6.7	1.9x
DIRECT-TO-CONSUMER
Hanover Direct	12/27/2003	($23,321)⁶³	—⁶³	—⁶⁴	-5.6%	49.1%	$414,874	-9.3%	-24.5%	—%	37.1%	34.1%	99.6%	5.5x
MEDIAN			—	—				-9.3	-24.5	—	37.1	34.1	99.6	5.5x
HOME IMPROVEMENT
Home Depot	2/1/2004	$4,304,000	17.5%	85.5%	6.6%	19.2%	$64,816,000	11.3%	68.6%	3.8%	31.8%	21.2%	—%	5.1x
Lowe's	1/30/2004	1,877,000⁶⁵	27.6⁶⁵	178.9⁶⁵	6.1	18.2	30,838,000	18.1	99.7	6.7	31.2	18.0	4.4	5.0x
MEDIAN			22.6	132.2				14.7	84.2	5.3	31.5	19.6	4.4	5.1x
Source: Home Textiles Today market research and company reports Figures in parentheses represent losses of calculations based on net or operating losses. 1. Includes net income from discontinued operations of $193 million in 2003 and $137 million in 2002. 2. Excludes non-sales revenues of $2.4 billion in 2003 and $2 billion in 2002. 3. Excludes net credit revenues of $1.4 billion in 2003, $1.2 billion in 2002 and $490 million in 1999. 4. Emerged from Chapter 11 bankrupcty in May 2003. Year 2003 figures represent the combined figures for the successor company for the 39 weeks ended Jan. 28, 2004 and the predecessor company for the 13 weeks ended April 30, 2003. 5. Includes a $37 million pretax charge for restructuring, impairment and other charges, an $89 million net loss on the sale of assets, a $768 million net reorganization charge and a $10 million net loss from discontinued operations. 6. Includes a $574 million pretax charge for restructuring, impairment and other charges, a $5 million net gain on the sale of assets, a $363 million net reorganization charge, a $24 million income tax benefit and a $448 million net loss from discontinued operations. 7. Includes a $193 million net loss from discontinued operations. 8. Includes a $10 million pretax gain from litigation settlement expense and other related proceeds. 9. Includes a $29.5 million pretax loss from litigation settlement expense and other related proceeds. 10.Includes a $6 million pretax restructuring charge and a $186.1 million extraordinary charge, the cumulative effect of an accounting change. 11. Includes an $8.1 million pretax special charge and $43 million in income from discontinued operations. 12. Excludes licensed department rentals and other income of $12.8 million in 2003, $12.6 million in 2002 and $13.6 million in 1999. 13. Includes license fees from affiliates of $5.6 million in 2003 and $7.4 million in 2002 and income tax benefits of $1.7 million in 2003 and $325,000 in 2002. 2002 also includes a $2.1 million extraordinary charge for the cumulative effect of an accounting change. 14. Excludes licensed department sales. 15. Includes $180 million in net income from the disposal of discontinued operations. 16. Includes $30 million net losses from discontinued operations. 17. Includes pretax restructuring charges of $322 million in 2003 and $91 million in 2002. 18. Includes pretax charges for asset impairment and store closing costs of $43.7 million in 2003 and $52.2 million in 2002. 2002 also includes a $530.3 million extraordinary loss, the cumulative effect of an accounting change. 19. Excludes service charges, interest and other income of $264.7 million in 2003, $322.9 million in 2002 and $244.5 million in 1999. 20. Excludes $244.5 million in service charges, interest and other income. 21. Includes an $8.2 million pretax charge for losses from long-lived assets, a $62,000 pretax integration credit and a $10.5 million pretax loss on the early extinguishment of debt. 22. Includes a $19.5 million pretax charge for losses from long-lived assets, a $10 million pretax integration charge, a $709,000 pretax gain on the early extinguishment of debt and a $45.6 million extraordinary charge, the cumulative effect of an accounting change. 23. Includes a $12.5 million pretax loss from long-lived assets, a $41.6 million pretax integration charge and a $15.2 million extraordinary loss on the early extinguishment of debt. 24. Includes a $14.8 million pretax gain on the sale of property, equipment and investments and a $2 million pretax restructuring charge. 25. Includes a $402,000 pretax loss on the sale of property, equipment and investments, a $8.1 million pretax restructuring charge and a $561,000 pretax asset impairment and store closing charge. 26. Includes a $1.5 million net loss from discontinued operations. 27. Includes a $2.7 million pretax unusual expense and $2.5 million in pretax restructuring income 28. Excludes net non-sales income of $3.6 million in 2003 and $2.7 million in 2002. 29. Includes an $882,000 net loss on discontinued operations. 30. Includes a $9.5 million pretax asset impairment charge, a $3.7 million pretax loss on the early extinguishment of debt, a $6.5 million income tax benefit and a $4.5 million loss on discontinued operations. 31. Includes a $1.9 million pretax asset impairment charge. 32. Excludes net credit revenues of $3.7 million in 2003, $8.2 million in 2002 and $8.7 million in 1999 and net leased department revenues of $3.5 million in 2003, $3.6 million in 2002 and $.2 million in 1999. 33. Includes a $791 million net loss on the early retirement of debt, a $112 million pretax charge for special charges and impairments and a $4.2 billion pretax gain on the sale of businesses. 34.Includes a $111 million pretax charge for special and impairment losses and a $208 million extraordinary charge, the cumulative effect of an accounting change. 35. Excludes credit and financial products revenues of $4.8 billion in 2003 and $5.7 billion in 2002. 36. Total revenues. 37. Reflects the reclassification of Ekerd Drugs as discontinued operations. 38.After preferred dividends of $25 milion; includes a $1.3 billion net loss from discontinued operations. 39. After preferred dividends of $27 milion; includes $120 million in net income from discontinued operations. 40. Retail sales, excludes $1.1 billion in direct marketing revenue. 41. 2003 is 53 weeks; 2002 and 1999 are 52 weeks. 42.Includes a $5.2 million extraordinary charge, the cumulative effect of an accounting change. 43. Includes a $9.7 million net loss from discontinued operations. 44. Includes $3.4 million in net income from discontinued operations. 45. Includes net losses from discontinued operations of $1.7 million in 2003, $286,000 in 2002 and $317,000 in 1999. 46. Includes a $3.9 million pretax loss on the early extinquishment of debt. 47.After preferred dividend charges of $8.1 million; includes a $4.7 million pretax loss on the early extinguishment of debt. 48. Filed for Chapter 11 bankruptcy in Jan., 2004. 49. Includes a $1.5 million net restructuring charge and a $31.7 million pretax reorganization charge. 50. Includes an $9.9 million pretax restructuring charge and an $18.2 million income tax benefit. 51. After preferred dividends. 52. Includes a $4 million pretax gain on the sales of assets. 53. Includes a $1.8 million income tax benefit. 54. After preferred shareholder dividends of $358,000; includes a $278,000 pretax charge for the change in fair value of warrants and an $8.5 million income tax benefit. 55. Includes a $1.7 million income tax benefit. 56. Includes pretax provisions for impaired assets and store closing costs of $19.5 million in 2003, $21 million in 2002 and $56.5 million in 1999. 1999 also includes a $118 million extraordinary charge, the cumulative effect of an accounting change. 57. Excludes membership fees and other revenue of $852.9 million in 2003, $769.4 million in 2002 and $479.6 million in 1999. 58. Includes pretax gains on contingent lease obligations of $4.5 million in 2003 and $15.6 million in 2002 and net losses from discontinued operations of $676,000 in 2003 and $14.9 million in 2002. 2003 also includes a $1.3 million extraordinary charge, the cumulative effect of an accounting change . 59. Includes a $1.4 million net loss from discontinued operations. 60. Excludes membership fees and other revenue of $139.4 million in 2003, $130.7 million in 2002 and $89.1 million in 1999. 61. Includes a $5.7 million pretax charge for stock option compensation expense and a $5.5 million pretax charge for debt repurchase and share reclassification expenses. 62.Includes a $1.9 million pretax charge for debt repurchase and share reclassification expenses. 63. After preferred dividends of $7.9 million in 2003 and $15.6 million in 2002; includes pretax special charges of $1.3 million in 2003 and $4.4 million in 2002 and pretax gains on the sale of Improvements business of $1.9 million in 2003 and $570,000 in 2002. 64. 1999 net loss, after preferred dividends of $634,000 was $16.9 million, including a $144,000 pretax special charge, a $4.3 million pretax gain on the sales of The Shopper's Edge and a $967,000 pretax gain on the sale of Austad's. 65. Includes net earnings from discontinued operations of $15 million in 2003, $12 million in 2002 and $15 million in 1999.

Talkback

We would love your feedback!

	Home Textiles Today Extra (Daily)
	Home Textiles Today's Green (Occasional)
	Furniture Today eDaily (Daily)
	Furniture Today Bedding Today eWeekly (Weekly)
	Furniture Today's Green (Occasional)
	eDaily Classifieds (Weekly)
	Home Accents Today eWeekly (Weekly)
	Home Accents Today Product Line (Bi-Weekly)
	Home Accents Today Green (Occasional)
	Casual Living eWeekly (Weekly)
	Casual Living Green (Occasional)
	Kids Today eKids News (Weekly)
	Gifts and Decorative Accessories Direct (Weekly)
	Gifts and Decorative Accessories Product Wire (Twice A Month)
	Gifts & Dec Double Take (Occasional)
	Playthings eXtra (Weekly)
	Playthings Product Watch (Twice A Month)

Retail Report Card

Staff -- Home Textiles Today, 8/9/2004

Talkback

Related Content

Related Content

By This Author

Sponsored Links

More Content

Blogs

Photos

Please visit these other Reed Business sites