Kids retailer scorecard
By Janice Chamberlain -- Kids Today, 10/1/2005
High Point— Annual aggregate sales for the nine retailers on the Kids Today annual scorecard were up 7.8% — a percentage point higher than last year — while net income jumped 16.5%, both compared with 2003 annual figures. In 2003, composite profits surged more than 55%.
Total sales for the nine companies reached $426.8 billion, compared with $396 billion the previous year. Earnings increased from $13.3 billion in 2003 to $15.4 billion in 2004.
Collective operating income increased by 18.7% to $24.2 billion from $20.3 billion in the year-earlier period.
Perennial leader Wal-Mart, which added $28.9 billion in sales from 2003 to 2004, more than duplicating its sales gain from 2002 to 2003, once again posted the largest single sales increase in dollars. That's an 11.3% increase for the mega-retailer in 2004.
Add to Wal-Mart's record a 13.4% increase in profits, or a $1.2 billion increase, to $10.3 billion in earnings for the 2004 year.
But those results only earned Wal-Mart a fourth-place position on the list of companies with major profit gains from 2003.
In terms of dollar gains in earnings, Wal-Mart trailed Kmart, J.C. Penney and Target Corp., with increases of $1.7 billion, $1.5 billion and $1.4 billion, respectively, compared with 2003 profits.
Compared with 2000, Wal-Mart took top honors in both sales gains and profit increases, adding $104.4 billion in sales from 2000 to 2004 and $4.2 billion in earnings for the same five-year period. Target placed second in both measurements, adding $9.3 billion in sales and $1.9 billion in net income.
Wal-Mart also bested the competition in inventory turns, with 7.8 turns in 2004, equaling year-earlier results.
Target recorded 6.3 turns for second place, and Sears posted 4.8 inventory turns in 2004 to come in third.
J.C. Penney led the way in same-store sales growth, gaining 5% for the year. Not far behind was the 4.5% posted by Bed Bath & Beyond.
The two textiles specialty chains, Bed Bath & Beyond and Linens 'n Things, came in first and second in gross margin percentage with results of 42.5% and 40.3%, respectively.
This version of the Kids Today annual retail scorecard is based on the annual financial results of nine publicly held retailers with fiscal years ending between Jan. 1 and Feb. 26, 2005.
| 2004 | 2003 | % Change | |
| Sales | $426,822.8 | $396,045.3 | 7.8% |
| Operating income | $24,158.1 | $20,349.3 | 18.7 |
| Net income | $15,436.8 | $13,253.3 | 16.5 |
| $millions | Change |
| Kmart | $1,734.0 |
| J.C. Penney | 1,465.0 |
| Target | 1,389.0 |
| Wal-Mart | 1,213.0 |
| Toys "R" Us | 189.0 |
| $millions | Change |
| Wal-Mart | $4,180.0 |
| Target | 1,934.0 |
| Kmart | 1,374.0 |
| J.C. Penney | 1,217.0 |
| Bed Bath & Beyond | 333.0 |
| $millions | Change |
| Wal-Mart | $28,893.0 |
| Target | 4,754.0 |
| Bed Bath & Beyond | 669.7 |
| J.C. Penney | 638.0 |
| Linens 'n Things | 266.2 |
| $millions | Change |
| Wal-Mart | $104,435.0 |
| Target | 9,320.0 |
| Bed Bath & Beyond | 2,751.0 |
| Linens 'n Things | 1,088.9 |
| Toys "R" Us | (232.0) |
| Year ended | Net income ($thousands) 2004 | Percentage change | Return on sales | Return on equity | Net sales ($thousands) 2004 | Percentage change | Change in same-store sales | Gross margin percentage | Inventory turns | |||
| '03–'04 | '00–'04 | '03–'04 | '00–'04 | |||||||||
| Wal-Mart | 1/31/2005 | $10,267,000 | 13.4%1 | 68.7% | 3.6% | 20.8% | $285,222,0002 | 11.3%2 | 57.8% | 3.0%3 | 22.9% | 7.8x |
| Target | 1/29/2005 | 3,198,0004,R | 76.85,R | 153.0R | 7.0 | 24.5 | 45,682,0006 | 11.66 | 25.66 | 0.0 | 31.2 | 6.3 |
| Sears, Roebuck | 1/1/2005 | (507,000)7 | —8 | —9 | -1.4 | -8.3 | 35,718,00010 | -1.810 | -1.811 | -1.4 | 27.2 | 4.8 |
| Kmart12 | 1/26/2005 | 1,106,00013 | —14 | —15 | 5.6 | 24.7 | 19,701,000 | -15.3 | -43.8 | -11.0 | 25.5 | 4.5 |
| J.C. Penney | 1/29/2005 | 512,00016 | —16 | —17 | 2.8 | 10.5 | 18,424,000 | 3.6 | -42.1 | 5.0 | 38.7 | 3.6 |
| Toys "R" Us | 1/29/2005 | 252,00018,R | 300.018,R | -35.1 | 2.3 | 5.8 | 11,100,000 | -1.9 | -2.0 | -3.7 | 32.4 | 3.8 |
| Bed Bath & Beyond | 2/26/2005 | 504,964 | 26.4 | 193.7 | 9.8 | 22.9 | 5,147,678 | 15.0 | 114.8 | 4.5 | 42.5 | 2.7 |
| ShopKo Stores | 1/29/2005 | 43,338 | 10.8 | —19 | 1.4 | 6.8 | 3,166,64520 | -0.520 | -10.020 | -0.4 | 26.2 | 4.1 |
| Linens 'n Things | 1/1/2005 | 60,521 | -16.8R | -2.9R | 2.3 | 7.5 | 2,661,469 | 11.1 | 69.2 | 1.8 | 40.3 | 2.2 |
| R = Restated 1. Includes $193 million in net income from discontinued operations. 2. Excludes non-sales revenues of $2.8 billion in 2004 and $2.4 billion in 2003. 3. For domestic stores. 4. Includes $75 million in net earnings from discontinued operations and a $1.2 billion net gain on the disposal of discontinued operations. 5. Includes $190 million in net earnings from discontinued operations. 6. Excludes net credit revenues of $1.2 billion in 2004, $1.1 billion in 2003 and $541 million in 2000. 7. Includes a $41 million pretax charge for special charges and impairments and an $839 million extraordinary charge, the cumulative effect of an accounting change. 8. Includes a $791 million net loss on the early retirement of debt, a $140 million pretax charge for special charges and impairments and a $4.2 billion pretax gain on the sale of businesses. Net income in 2003 was $3.4 billion. 9. Includes a $251 million pretax charge for asset impairment losses and a $49 million after-tax minority interest charge. Net income in 2000 was $1.3 billion. 10. Excludes credit and financial products revenues of $381 million in 2004 and $4.8 billion in 2003. 11. Excludes $4.6 billion in credit revenues. 12. 2004 and 2003 are 52 weeks; 2000 is 53 weeks. 13. Includes a $946 million net gain on the sales of assets and a $59 million pretax bankruptcy recovery. 14. Includes a $37 million pretax charge for restructuring, impairment and other charges, an $89 million net loss on the sales of assets, a $769 million net reorganization charge, a $4 million pretax bankruptcy recovery and a $10 million net loss from discontinued operations. The 2003 net loss was $628 million. 15. Includes a $12 million net loss from discontinued operations. The 2000 net loss was $268 million. 16. After preferred dividends of $12 million in 2004 and $25 million in 2003; includes net losses from discontinued operations of $143 million in 2004 and $1.3 billion in 2003. The net loss in 2003 was $953 million. 17. Includes a $488 million pretax restructuring charge, a $318 million income tax benefit, $159 million in net income from discontinued operations and a $296 million net loss on the sale of discontinued operations. The net loss in 2000 was $705 million. 18. Includes pretax restructuring and other charges of $4 million in 2004 and $63 million in 2003. 2004 also includes a $59 million income tax benefit. 19. Includes a $9.2 million pretax special charge, a $114.6 million pretax restructuring charge, a $29 million income tax benefit, $1.6 million in net income from discontinued operations and a $32.6 million net gain on the sale of discontinued operations. The net loss in 2000 was $15.8 million. 20. Excludes licensed department rentals and other income of $13.2 million in 2004, $12.8 million in 2003 and $13.4 million in 2000. |
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