filings.toolsItem 6. Selected Financial Data
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Item 6. Selected Financial Data
The following table presents a summary of our selected financial data for the fiscal years ended February 2, 2019, February 3, 2018, January 28, 2017, January 30, 2016, and January 31, 2015. Fiscal 2017 included 53 weeks, commensurate with the retail calendar, while all other fiscal years reported in the table contain 52 weeks. The selected statement of operations and balance sheet data have been derived from our consolidated financial statements that have been audited by our independent registered public accounting firm. This information should be read in conjunction with the consolidated financial statements and related notes, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our financial information found elsewhere in this report.
As a result of the Acquisition on July 6, 2015, the statement of operations data below for the year ended January 30, 2016 includes the results of operations of Family Dollar since that date. In addition, the balance sheet information below includes the Family Dollar assets acquired and liabilities assumed for periods after the July 6, 2015 acquisition date.
Comparable store net sales compares net sales for stores which have been open for more than fifteen months by the end of the year prior to the two years being compared, including expanded or remodeled stores. Both our Dollar Tree stores and our acquired Family Dollar stores are included in the comparable store net sales calculation for the years ended February 2, 2019 and February 3, 2018. For all prior years, only our Dollar Tree stores are included in the comparable store net sales calculation. Stores that have been re-bannered are considered to be new stores and are not included in the calculation of the comparable store net sales change until after the first fifteen months of operation under the new brand. Net sales per store and net sales per selling square foot are calculated for stores open throughout the period presented.
In the fourth quarter of 2018, we recorded a $2.73 billion non-cash pre-tax and after-tax goodwill impairment charge related to our Family Dollar reporting unit, which is reflected in “Selling, general and administrative expenses” in the accompanying consolidated statements of operations for the year ended February 2, 2019. This goodwill impairment charge created a net loss for the year ended February 2, 2019, reducing diluted earnings per share by $11.42 per share. For additional information regarding the impairment of the Family Dollar goodwill, refer to “Note 3 - Goodwill and Nonamortizing Intangible Assets” in “Item 8. Financial Statements and Supplementary Data” beginning on page 42 of this Form 10-K.
As a result of the enactment of the Tax Cuts and Jobs Act (“TCJA”) in 2017, net income and diluted net income per share for the year ended February 3, 2018 increased by $583.7 million and $2.45 per share, respectively.
Amounts in the following tables are in millions, except per share data, number of stores data, net sales per selling square foot data and inventory turns.
| Year Ended | |||||||||||||||||||
| February 2, 2019 | February 3, 2018 | January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
| Statement of Operations Data: | |||||||||||||||||||
| Net sales | $ | 22,823.3 | $ | 22,245.5 | $ | 20,719.2 | $ | 15,498.4 | $ | 8,602.2 | |||||||||
| Gross profit | 6,947.5 | 7,021.9 | 6,394.7 | 4,656.7 | 3,034.0 | ||||||||||||||
| Selling, general and administrative expenses | 7,887.0 | 5,022.8 | 4,689.9 | 3,607.0 | 1,993.8 | ||||||||||||||
| Operating income (loss) | (939.5 | ) | 1,999.1 | 1,704.8 | 1,049.7 | 1,040.2 | |||||||||||||
| Net income (loss) | (1,590.8 | ) | 1,714.3 | 896.2 | 282.4 | 599.2 | |||||||||||||
| Margin Data (as a percentage of net sales): | |||||||||||||||||||
| Gross profit | 30.4 | % | 31.6 | % | 30.8 | % | 30.1 | % | 35.3 | % | |||||||||
| Selling, general and administrative expenses | 34.5 | % | 22.6 | % | 22.6 | % | 23.3 | % | 23.2 | % | |||||||||
| Operating income (loss) | (4.1 | )% | 9.0 | % | 8.2 | % | 6.8 | % | 12.1 | % | |||||||||
| Net income (loss) | (7.0 | )% | 7.7 | % | 4.3 | % | 1.8 | % | 7.0 | % | |||||||||
| Per Share Data: | |||||||||||||||||||
| Diluted net income (loss) per share | $ | (6.66 | ) | $ | 7.21 | $ | 3.78 | $ | 1.26 | $ | 2.90 | ||||||||
| Diluted net income (loss) per share increase (decrease) | (192.4 | )% | 90.7 | % | 200.0 | % | (56.6 | )% | 6.6 | % |
| As of | |||||||||||||||||||
| February 2, 2019 | February 3, 2018 | January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
| Balance Sheet Data: | |||||||||||||||||||
| Cash and cash equivalents and short-term investments | $ | 422.1 | $ | 1,097.8 | $ | 870.4 | $ | 740.1 | $ | 864.1 | |||||||||
| Working capital | 2,197.6 | 1,717.2 | 1,832.1 | 1,840.5 | 1,133.0 | ||||||||||||||
| Total assets | 13,501.2 | 16,332.8 | 15,701.6 | 15,901.2 | 3,492.7 | ||||||||||||||
| Total debt, including capital lease obligations | 4,300.0 | 5,732.7 | 6,391.8 | 7,465.5 | 757.0 | ||||||||||||||
| Shareholders’ equity | 5,642.9 | 7,182.3 | 5,389.5 | 4,406.9 | 1,785.0 | ||||||||||||||
| Year Ended | |||||||||||||||||||
| February 2, 2019 | February 3, 2018 | January 28, 2017 | January 30, 2016 | January 31, 2015 | |||||||||||||||
| Selected Operating Data: | |||||||||||||||||||
| Number of stores open at end of period | 15,237 | 14,835 | 14,334 | 13,851 | 5,367 | ||||||||||||||
| Dollar Tree | 7,001 | 6,650 | 6,360 | 5,954 | 5,367 | ||||||||||||||
| Family Dollar | 8,236 | 8,185 | 7,974 | 7,897 | — | ||||||||||||||
| Gross square footage at end of period | 148.3 | 143.9 | 138.8 | 132.1 | 58.3 | ||||||||||||||
| Dollar Tree | 75.4 | 71.6 | 68.5 | 64.2 | 58.3 | ||||||||||||||
| Family Dollar | 72.9 | 72.3 | 70.3 | 67.9 | — | ||||||||||||||
| Selling square footage at end of period | 120.1 | 116.6 | 112.4 | 108.4 | 46.5 | ||||||||||||||
| Dollar Tree | 60.3 | 57.3 | 54.7 | 51.3 | 46.5 | ||||||||||||||
| Family Dollar | 59.8 | 59.3 | 57.7 | 57.1 | — | ||||||||||||||
| Selling square footage annual growth(2) | 3.0 | % | 3.7 | % | 3.7 | % | 10.3 | % | 7.4 | % | |||||||||
| Net sales annual growth(1) | 2.6 | % | 7.4 | % | 8.6 | % | 8.5 | % | 9.7 | % | |||||||||
| Comparable store net sales increase(1) | 1.7 | % | 1.9 | % | 1.8 | % | 2.1 | % | 4.3 | % | |||||||||
| Net sales per selling square foot(2) | $ | 193 | $ | 194 | $ | 188 | $ | 191 | $ | 192 | |||||||||
| Net sales per store(2) | $ | 1.5 | $ | 1.5 | $ | 1.5 | $ | 1.6 | $ | 1.7 | |||||||||
| Selected Financial Ratios: | |||||||||||||||||||
| Return on assets(2) | (10.7 | )% | 10.7 | % | 5.7 | % | 11.4 | % | 19.1 | % | |||||||||
| Return on equity(2) | (24.8 | )% | 27.3 | % | 18.3 | % | 31.5 | % | 40.5 | % | |||||||||
| Inventory turns(2) | 4.1 | 4.4 | 4.1 | 4.5 | 4.4 |
(1) Family Dollar was included in the determination of these items for the years ended February 2, 2019 and February 3, 2018
(2) Family Dollar was included in the determination of these items for the years ended February 2, 2019, February 3, 2018 and January 28, 2017
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