Membership and other income increased 14.1% and 3.0% for fiscal
2014 and 2013, respectively, when compared to the previous fiscal year.
The fiscal 2014 increase was primarily due to the improved contract terms
relating to the profit sharing arrangement with our credit card provider,
increased membership fees that were introduced on May 15, 2013,
$24 million of income from the sale of two real estate properties and
an increase in members from the opening of 12 new clubs. The fiscal
2013 increase was primarily due to an increase in total members aided
by the opening of nine new clubs.
Sam’s Club did not leverage expenses for fiscal 2014 as operating
expenses as a percentage of segment net sales increased 26 basis points,
when compared to the previous fiscal year. The increase in operating
expenses as a percentage of segment net sales was primarily due to a
$59 million charge for the implementation of a new in-club staffing
structure and the pending closure of one club, as well as a state excise
tax refund credit we received in the previous fiscal year. Sam’s Club
leveraged expenses for fiscal 2013 as operating expenses as a percentage
of segment net sales decreased 9 basis points, when compared to the
previous fiscal year. The fiscal 2013 decrease was due to improved wage
management, a state excise tax refund credit we received and lower
expenses in connection with club remodels.
As a result of the factors discussed above, operating income was
$2.0 billion, $2.0 billion and $1.8 billion for fiscal 2014, 2013 and 2012,
respectively. Sam’s Club did not grow operating income faster than
net sales in fiscal 2014, but did grow operating income faster than sales
in fiscal 2013.
Membership and other income increased 14.1% and 3.0% for fiscal
2014 and 2013, respectively, when compared to the previous fiscal year.
The fiscal 2014 increase was primarily due to the improved contract terms
relating to the profit sharing arrangement with our credit card provider,
increased membership fees that were introduced on May 15, 2013,
$24 million of income from the sale of two real estate properties and
an increase in members from the opening of 12 new clubs. The fiscal
2013 increase was primarily due to an increase in total members aided
by the opening of nine new clubs.
Sam’s Club did not leverage expenses for fiscal 2014 as operating
expenses as a percentage of segment net sales increased 26 basis points,
when compared to the previous fiscal year. The increase in operating
expenses as a percentage of segment net sales was primarily due to a
$59 million charge for the implementation of a new in-club staffing
structure and the pending closure of one club, as well as a state excise
tax refund credit we received in the previous fiscal year. Sam’s Club
leveraged expenses for fiscal 2013 as operating expenses as a percentage
of segment net sales decreased 9 basis points, when compared to the
previous fiscal year. The fiscal 2013 decrease was due to improved wage
management, a state excise tax refund credit we received and lower
expenses in connection with club remodels.
As a result of the factors discussed above, operating income was
$2.0 billion, $2.0 billion and $1.8 billion for fiscal 2014, 2013 and 2012,
respectively. Sam’s Club did not grow operating income faster than
net sales in fiscal 2014, but did grow operating income faster than sales
in fiscal 2013.
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