Kids retailer scorecard

By Janice Chamberlain -- Kids Today, 10/1/2004 12:00:00 AM

Annual aggregate sales for the 10 retailers on the Kids Today annual scorecard were up 6.8% while net income surged 55.1%, both compared with 2002 annual figures.

Total sales for the 10 companies reached $407.3 billion, compared with $381.5 billion in 2002. Profits jumped from $8.6 billion in 2002 to $13.3 billion in 2003.

Collective operating income increased by 12.4% to $25.2 billion from $22.4 billion the year before.

The largest single sales increase in dollars was posted by perennial leader Wal-Mart, which added more than $26.7 billion in sales from 2002 to 2003, duplicating its sales gain from 2001 to 2002. That's an 11.6% increase for the mega-retailer in 2003.

Add to Wal-Mart's record a 13.8% increase in profits, or a $1.1 billion increase, to $9.1 billion in earnings for 2003.

But those results only earned Wal-Mart a second-place position on the list of companies with major profit swings from 2002.

The No. 1 on the dollar increase list was Sears, which had profits of $3.4 billion, up more than $2 billion over 2002 results.

Surprisingly, discounter Kmart did not post the largest net loss for the year. That dubious honor belonged to J.C. Penney, which posted a loss of $953 million for the year, including a $1.3 billion net loss from discontinued operations.

Kmart, fighting its way back from bankruptcy, recorded a loss of $614 million for the year.

Bed Bath & Beyond took top honors in same-store sales growth, gaining 6.3% for the year. Not far behind was the 4% posted by Wal-Mart.

Wal-Mart also bested the competition in inventory turns with its 7.8 turns result for the year. Hanover Direct recorded 5.5 turns for second place and Target Corp. posted 6.3 inventory turns for the year to come in third.

This version of the Kids Today Annual Retail Scorecard is based on the annual financial results of ten publicly-held retailers with fiscal years ending between Dec. 27, 2003, and Feb. 28, 2004.

Retail composite results
($millions)

	2003	2002	% Change
Sales	$407,311.2	$381,541.7	6.8%
Operating income	$25,180.8	$22,408.3	12.4%
Net income	$13,303.1	$8,574.9	55.1%

	Year ended	Net income ($000) 2003	Percentage change		Return on sales	Return on equity	Net sales ($000) 2003	Percentage change		Change in same-store sales	Gross margin percentage	Inventory turns
			'02-'03	'99-03				02-'03	'99-03
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. For domestic stores. 4. Excludes net credit revenues of $1.4 billion in 2003, $1.2 billion in 2002 and $490 million in 1999. 5. 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. 6. Includes a $111 million pretax charge for special and impairment losses and a $208 million extraordinary charge, the cumulative effect of an accounting change. 7. Excludes credit and financial products revenues in 2003 and $5.7 billion in 2002. 8. Total revenues. 9. Emerged from Chapter 11 bankruptcy 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. 10. 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. 11. 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. 12. Includes a $193 million net loss from discontinued operations. 13. For the 39 weeks ended Jan. 28, 2004. 14. Reflects the reclassification of Eckerd Drugs as discontinued operations. 15. After preferred dividends of $25 million; includes a $1.3 billion net loss from discontinued operations. 16. After preferred dividends of $27 million; includes $120 million in net income from discontinued operations. 17. Retail sales, excludes $1.1 billion in direct marketing revenue. 18. Includes $85 million in pretax restructuring and other charges and a $3 million pretax gain on the sale of Toys 'R' Us-Japan. 19. Includes a $6 million pretax restructuring charge and a $186.1 million extraordinary charge, the cumulative effect of an accounting change. 20. Includes a $8.1 million pretax special charge and $43 million in income from discontinued operations. 21. Excludes $12.8 million in licensed department rentals and other income of $12.8 million in 2003, $12.6 million in 2002 and $13.6 million in 1999. 22. 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. 23. 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.
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%3	22.5%	7.8x
Target	1/31/2004	1,841,000	11.3	60.9	3.9	16.6	46,781,0004	9.54	40.94	-2.9	32.0	6.3
Sears, Roebuck	1/3/2004	3,397,0005	146.96	133.8	8.3	53.1	41,124,0007	-0.67	4.38	-2.7	36.2	5.0
Kmart9	1/28/2004	(614,000)10	—11	—12	-2.6	-28.0	23,253,000	-20.8	-31.5	-9.513	23.3	4.4
J.C. Penney14	1/31/2004	(953,000)15	—16	-318.6	-5.4	-17.6	17,786,000	0.9	-7.717	0.9	37.2	3.6
Toys 'R' Us	1/31/2004	88,00018	-61.6	-68.5	0.8	2.1	11,566,000	2.3	-2.5	-0.1	32.1	3.6
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	2.7
ShopKo Stores	1/31/2004	39,120	—19	-61.720	1.2	6.6	3,184,08821	-1.721	4.521	-1.6	25.7	4.2
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	2.2
Hanover Direct	12/27/2003	(23,321)22	—22	—23	-5.6	—	414,874	-9.3	-24.5	—	37.1	5.5