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Kids retailer scorecard

By Janice Chamberlain -- Kids Today, 9/1/2006 12:00:00 AM

Annual aggregate sales for the 11 retailers on the Kids Today's annual scorecard increased 7.8% from 2004 to 2005, matching their sales increase from 2003 to 2004. Composite net profits were flat against year-ago results, compared with a net income jump of 16.5% from 2003 to 2004.

Sales for the 11 companies totaled $459.8 billion, up from $426.7 billion last year, as profits held even at $15.8 billion. Collective operating income increased 11.1% to $26.7 billion.

Perennial leader Wal-Mart, which added $28.9 billion in sales from 2003 to 2004, topped the list of sales dollar increases from 2004 to 2005, adding $27.2 billion. The mega-retailer also led the list in profit dollar additions, with a near billion dollar gain in its coffers, year over year.

Compared with 2001, Wal-Mart again was first in both sales gains and profit increases, adding $108.4 billion in sales from 2001 to 2005 and $4.6 billion in earnings for the same five-year period. Target, for the second year in a row, placed second in both measurements, adding $18.2 billion in sales and $1.3 billion in net income.

This version of the Kids Today annual Retail Scorecard is based on the annual financial results of 11 publicly held retailers with fiscal years ending between Dec. 31, 2005, and Feb. 25, 2006. Joining the scorecard are Pier 1 Imports, The Bombay Co. and Williams-Sonoma. All three operate kids specialty furnishings stores. Returning to the scorecard is Hanover Direct, which is again filing annual reports with the Security and Exchange Commission.

Missing from the scorecard is Linens 'n Things, which went private in 2005 and the separate entities of Sears, Roebuck and Kmart, which now report as a single company, Sears Holding.

Retail composite results
($ millions)

	2005	2004	% Change
Sales	$459,837.4	$426,745.8	7.8%
Operating income	26,690.0	24,027.7	11.1
Net income	15,844.3	15,862.1	-0.1

Profit gains, '04–'05
$millions	Change
Wal-Mart	$964.0
JCPenney	576.0
Bed Bath & Beyond	67.0
Profit gains, '01–'05
$millions	Change
Wal-Mart	$4,639.0
Target	1,307.0
JCPenney	905.0
Sales swings, '04–'05
$millions	Change
Wal-Mart	$27,205.0
Target	5,589.0
JCPenney	685.0
Sales swings, '01–'05
$millions	Change
Wal-Mart	$108,416.0
Target	18,250.0
Bed Bath & Beyond	2,881.6

			Percentage change					Percentage change
	Year ended	Net income ($thousands) 2005	'04–'05	'01–'05	Return on sales	Return on equity	Net sales ($thousands) 2005	'04–'05	'01–'05	Change in same-store sales	Gross margin percentage	Inventory turns
1. Excludes non-sales revenues of $3.2 billion in 2005 and $2.9 billion in 2004. 2. Excludes non-sales revenues. 3. For domestic stores. 4. Pro forma results which adjust the reported amounts to give effect to the Sears-Kmart merger as if it had occurred at the beginning of fiscal 2004. 5. Includes pretax gains on the sale of assets of $40 million in 2005 and $356 million in 2004 and pretax bankruptcy recoveries of $40 million in 2005 and $59 million in 2004 and pretax restructuring charges of $111 million in 2005 and $41 million in 2004 . 2005 also includes a $317 million pretax gain on the sale of business and a $90 million extraordinary charge, the cumulative effect of an accounting change. 6. Excludes credit and financial projects revenues of $299 million in 2005 and $381 million in 2004. 7. Sears domestic same-store sales declined 8.4%, Kmart same-store sales declined 1.2%. 8. Includes $75 million in net earnings from discontinued operations and a $1.2 billion net gain on the disposal of discontinued operations. 9. Excludes net credit revenues of $1.3 billion in 2005 and $1.2 billion in 2004. 10. Total revenues. 11. Includes $111 million in net income from discontinued operations. 12. After preferred dividends of $12 milion; includes a $133 million net loss from discontinued operations. 13. Income from continuing operations. 14. Includes pretax restructuring and other charges of $34 million in 2005 and $4 million in 2004 and income tax benefits of $121 millon in 2005 and $59 million in 2004. 2005 also includes a $410 million pretax charge for transaction and related costs and a $22 million pretax charge for contract settlement fees and other charges. Net profits were $252 million in 2004 and $68 million in 2001. 15. Includes net losses from discontinued operations of $12.3 million in 2005, $2.3 million in 2004 and $1.1 million in 2001. 2005 also includes a $14.4 million income tax benefit. Net profits were $60.5 million in 2004 and $100.2 million in 2001. 16. 2004 and 2001 figures are restated. 17. Includes pretax store impairment charges of $5.9 million, a $560,000 pretax gain on the sale of assets and a $4.1 million pretax gain on the sale of non-operating assets. 18. Includes a $534,000 pretax charge for store impairments and a $6.7 million income tax benefit. 2004 net loss was $12.6 million. 19. After preferred stock payments of $294,000 in 2005, $124,000 in 2004 and $10.7 million in 2001; includes pretax special charges of $69,000 in 2005, $1.7 million in 2004 and $10.7 million in 2001 and net gains from discontinued operations of Gumps of $3 million in 2005, $3 million in 2004 and $2.2 million in 2001. 2001 also includes a a $23.2 million pretax gain on the sale of Improvements business and a $1.5 million pretax gain on the sale of Kindig Lane property. 20. 2004 net profits were $221,061 and 2001's net loss was $575,000. Source: Company reports and Kids Today Market Research.
Wal-Mart	1/31/2006	$11,231,000	9.4%	70.4%	3.6%	21.1%	$312,427,000¹	9.5%¹	53.1%²	3.0%³	23.1%	7.8x
Sears Holding⁴	1/28/2006	789,000⁵	-10.75	NA	1.5	6.8	$53,962,000⁶	-2.9⁶	NA	-5.3⁷	27.4	6.3
Target	1/28/2006	2,408,000	-24.7⁸	118.7	4.7	17.0	$51,271,000⁹	12.2⁹	55.3¹⁰	5.6	31.9	6.2
JCPenney	1/28/2006	1,088,000¹¹	112.5¹²	494.5¹³	5.8	27.2	$18,781,000	3.8	5.3	2.9	39.3	3.6
Toys "R" Us	1/28/2006	(384,000)¹⁴	-¹⁴	-¹⁴	-3.4	53.0	$11,275,000	1.6	2.3	-1.4	32.1	4.5
Bed Bath & Beyond	2/25/2006	572,847	13.4	160.9	9.9	25.3	$5,809,562	12.9	98.4	4.6	42.8	2.7
Williams-Sonoma	1/29/2006	214,866	12.4	186.1	6.1	19.1	$3,538,947	12.8	69.6	4.9	40.6	4.3
Pier 1 Imports	2/25/2006	(39,804)¹⁵	-¹⁵	-¹⁵	-2.2	-6.7	$1,776,701	-2.7	18.0	-7.1	33.9	3.2
The Bombay Co.¹⁶	1/28/2006	(46,731)¹⁷	-¹⁸	-	-8.3	-34.4	$565,074	-1.9	29.2	-2.0	24.0	3.1
Hanover Direct	12/31/2005	11,663¹⁹	139.1¹⁹	-166.5¹⁹	2.9	-45.7	$407,442	13.0	-14.9	-	37.9	4.8
Baby Universe	12/31/2005	(492)	-²⁰	-²⁰	-2.1	-3.0	$23,702	66.1	657.3	-	26.5	22.9

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