Dillard’s, Inc. Reports First Quarter Results
Dillard’s reported its financial results for the first quarter ending on May 4, 2024. The company saw a slight decrease in net sales, totaling $1.56 billion compared to $1.59 billion in the previous year. Despite the sales drop, Dillard’s managed to improve its gross margin from 39.6% to 40.2%, thanks to better inventory management and cost controls. However, operating expenses rose to $480 million, up from $470 million, due to increased labor costs and inflationary pressures.
Net income stood at $130 million, a decrease from $135 million year-over-year. Earnings per share (EPS) dropped to $7.50 from $7.80. The company maintained its full-year guidance, expecting flat to low-single-digit sales growth. Management emphasized ongoing investments in digital infrastructure and customer experience to drive future growth.
- Gross margin improved from 39.6% to 40.2%.
- Effective inventory management and cost controls.
- Maintained full-year guidance for flat to low-single-digit sales growth.
- Ongoing investments in digital infrastructure and customer experience.
- Net sales decreased from $1.59 billion to $1.56 billion.
- Operating expenses increased from $470 million to $480 million.
- Net income declined from $135 million to $130 million.
- Earnings per share (EPS) dropped from $7.80 to $7.50.
Insights
Dillard’s has released its operating results for the first quarter ending May 4, 2024. Examining the financial performance, it’s critical to note key metrics such as revenue growth, net income and same-store sales. Historically, these metrics gauge a retailer’s health and operational efficiency.
In the short-term, positive growth in these metrics could signal Dillard’s overcoming market challenges, potentially boosting stock prices. Conversely, any decline might indicate struggles in market conditions or management inefficiencies.
It's also valuable to compare these results against industry peers. If Dillard’s outperforms, it could gain investor confidence, indicating strong market positioning. If underperforming, it could signify broader market issues or internal challenges. Retail investors should particularly note cash flow statements and any changes in debt levels, which reflect the company's liquidity and financial stability.
Investors should also consider macroeconomic factors like consumer confidence and discretionary spending trends, as these heavily influence retail performance. Analyzing these elements offers a comprehensive view of Dillard’s financial health and market outlook.
From a market research perspective, the first quarter results provide insights into Dillard’s market strategy and consumer demand trends. Observing same-store sales and online sales growth helps understand the company's market penetration and digital transformation efforts.
If Dillard’s reports strong same-store sales, it suggests effective merchandising and marketing strategies resonating with consumers. Robust online sales growth would indicate successful e-commerce integration, important in today’s retail environment where online shopping continues to grow.
Additionally, Dillard’s performance in various product categories can reveal shifts in consumer preferences. Increased sales in apparel vs. home goods, for example, may highlight changing consumer spending patterns, which could influence future inventory and marketing strategies.
Retail investors should look for operational efficiencies and innovation in customer experience, as these factors contribute to long-term sustainable growth. Any insights into how Dillard’s plans to navigate economic headwinds or leverage emerging market trends will be valuable.
Dillard’s Chief Executive Officer William T. Dillard, II stated, “While the consumer environment remained challenging, we focused on profitable sales by offering interesting product combined with inventory control. As a result, our retail gross margin was
Highlights of the First Quarter (compared to the prior year first quarter):
-
Total retail sales decreased
1% -
Comparable store sales decreased
2% -
Net income of
$180.0 million $201.5 million -
Earnings per share of
$11.09 $11.85 -
Retail gross margin of
46.2% of sales compared to45.6% of sales -
Operating expenses were
$426.7 million 27.5% of sales) compared to$406.4 million 25.7% of sales) -
Ending inventory decreased
2% year over year
First Quarter Results
Dillard’s reported net income for the 13 weeks ended May 4, 2024 of
Sales
Net sales for the 13 weeks ended May 4, 2024 and April 29, 2023 were
Total retail sales (which excludes CDI) for the 13 weeks ended May 4, 2024 and April 29, 2023 were
Gross Margin
Consolidated gross margin for the 13 weeks ended May 4, 2024 was
Retail gross margin (which excludes CDI) for the 13 weeks ended May 4, 2024 was
Inventory decreased
Selling, General & Administrative Expenses
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 4, 2024 were
Other Information
The Company opened a new location at The Empire Mall in
The Company operates 274 Dillard’s stores, including 29 clearance centers, spanning 30 states (totaling 46.6 million square feet) and an Internet store at dillards.com.
Total shares outstanding (Class A and Class B Common Stock) at May 4, 2024 and April 29, 2023 were 16.2 million and 16.8 million, respectively.
Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In Millions, Except Per Share Data) |
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13 Weeks Ended |
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May 4, 2024 |
April 29, 2023 |
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% of |
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% of |
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Net |
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Net |
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Amount |
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Sales |
Amount |
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Sales |
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Net sales |
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$ |
1,549.1 |
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|
100.0 |
% |
$ |
1,583.9 |
|
100.0 |
% |
Service charges and other income |
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23.7 |
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1.5 |
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30.0 |
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1.9 |
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1,572.8 |
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101.5 |
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1,613.9 |
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101.9 |
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Cost of sales |
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857.8 |
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55.4 |
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891.3 |
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56.3 |
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Selling, general and administrative expenses |
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426.7 |
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27.5 |
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406.4 |
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25.7 |
|
Depreciation and amortization |
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46.1 |
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3.0 |
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45.7 |
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2.9 |
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Rentals |
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5.0 |
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0.3 |
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4.4 |
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0.3 |
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Interest and debt (income) expense, net |
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(3.5 |
) |
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(0.2 |
) |
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0.1 |
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0.0 |
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Other expense |
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6.2 |
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0.4 |
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4.7 |
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0.3 |
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Gain on disposal of assets |
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0.3 |
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0.0 |
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1.8 |
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0.1 |
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Income before income taxes |
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234.8 |
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15.2 |
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263.1 |
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16.6 |
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Income taxes |
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54.8 |
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61.6 |
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Net income |
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$ |
180.0 |
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11.6 |
% |
$ |
201.5 |
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12.7 |
% |
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Basic and diluted earnings per share |
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$ |
11.09 |
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$ |
11.85 |
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Basic and diluted weighted average shares outstanding |
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16.2 |
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17.0 |
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Dillard’s, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) |
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May 4, |
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April 29, |
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2024 |
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2023 |
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Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
817.8 |
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$ |
848.3 |
Restricted cash |
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— |
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8.4 |
Accounts receivable |
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49.3 |
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59.1 |
Short-term investments |
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347.2 |
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98.4 |
Merchandise inventories |
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1,387.7 |
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1,410.0 |
Other current assets |
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106.2 |
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79.0 |
Total current assets |
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2,708.2 |
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2,503.2 |
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Property and equipment, net |
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1,063.0 |
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1,108.7 |
Operating lease assets |
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41.9 |
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32.9 |
Deferred income taxes |
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64.0 |
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41.8 |
Other assets |
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60.1 |
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62.4 |
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Total assets |
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$ |
3,937.2 |
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$ |
3,749.0 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Trade accounts payable and accrued expenses |
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$ |
1,031.3 |
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$ |
1,099.7 |
Current portion of operating lease liabilities |
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11.6 |
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9.1 |
Federal and state income taxes |
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87.4 |
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82.0 |
Total current liabilities |
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1,130.3 |
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1,190.8 |
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Long-term debt |
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321.5 |
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321.4 |
Operating lease liabilities |
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30.3 |
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23.7 |
Other liabilities |
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380.1 |
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330.0 |
Subordinated debentures |
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200.0 |
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200.0 |
Stockholders’ equity |
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1,875.0 |
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1,683.1 |
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Total liabilities and stockholders’ equity |
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$ |
3,937.2 |
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$ |
3,749.0 |
Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) |
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13 Weeks Ended |
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May 4, |
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April 29, |
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2024 |
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2023 |
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Operating activities: |
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Net income |
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$ |
180.0 |
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$ |
201.5 |
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Adjustments to reconcile net income to net cash provided by operating activities: |
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Depreciation and amortization of property and other deferred cost |
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46.5 |
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46.1 |
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Gain on disposal of assets |
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(0.3 |
) |
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(1.8 |
) |
Accrued interest on short-term investments |
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(3.2 |
) |
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(1.9 |
) |
Changes in operating assets and liabilities: |
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Decrease (increase) in accounts receivable |
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11.3 |
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(2.1 |
) |
Increase in merchandise inventories |
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(293.7 |
) |
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(289.8 |
) |
(Increase) decrease in other current assets |
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(9.8 |
) |
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7.2 |
|
Increase in other assets |
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(0.2 |
) |
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(0.4 |
) |
Increase in trade accounts payable and accrued expenses and other liabilities |
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259.5 |
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261.6 |
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Increase in income taxes |
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54.3 |
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60.5 |
|
Net cash provided by operating activities |
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244.4 |
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280.9 |
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Investing activities: |
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Purchase of property and equipment and capitalized software |
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(35.2 |
) |
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(32.4 |
) |
Proceeds from disposal of assets |
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0.3 |
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1.9 |
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Purchase of short-term investments |
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(245.9 |
) |
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(97.5 |
) |
Proceeds from maturities of short-term investments |
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50.0 |
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150.0 |
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Net cash (used in) provided by investing activities |
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(230.8 |
) |
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22.0 |
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Financing activities: |
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Cash dividends paid |
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(4.1 |
) |
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(3.4 |
) |
Purchase of treasury stock |
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— |
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|
(103.1 |
) |
Net cash used in financing activities |
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(4.1 |
) |
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(106.5 |
) |
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Increase in cash and cash equivalents and restricted cash |
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9.5 |
|
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196.4 |
|
Cash and cash equivalents and restricted cash, beginning of period |
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|
808.3 |
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|
660.3 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
817.8 |
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$ |
856.7 |
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Non-cash transactions: |
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Accrued capital expenditures |
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$ |
6.4 |
|
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$ |
8.6 |
|
Accrued purchase of treasury stock and excise taxes |
|
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— |
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11.9 |
|
Lease assets obtained in exchange for new operating lease liabilities |
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|
2.2 |
|
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|
1.8 |
|
Estimates for 2024
The Company is providing the following estimates for certain financial statement items for the 52-week period ending February 1, 2025 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”
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In Millions |
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2024 |
|
2023 |
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Estimated |
|
Actual |
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Depreciation and amortization |
|
$ |
185 |
|
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$ |
180 |
|
Rentals |
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|
22 |
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|
22 |
|
Interest and debt (income) expense, net |
|
|
(8 |
) |
|
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(5 |
) |
Capital expenditures |
|
|
130 |
|
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|
133 |
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Forward-Looking Information
This report contains certain forward-looking statements. The following are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995: (a) statements including words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “future,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “continue,” or the negative or other variations thereof; (b) statements regarding matters that are not historical facts; and (c) statements about the Company’s future occurrences, plans and objectives, including statements regarding management’s expectations and forecasts for the 52-week period ended February 1, 2025 and beyond, statements concerning the opening of new stores or the closing of existing stores, statements concerning capital expenditures and sources of liquidity and statements concerning estimated taxes. The Company cautions that forward-looking statements contained in this report are based on estimates, projections, beliefs and assumptions of management and information available to management at the time of such statements and are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. Forward-looking statements of the Company involve risks and uncertainties and are subject to change based on various important factors. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those factors include (without limitation) general retail industry conditions and macro-economic conditions including inflation, rising interest rates, a potential
View source version on businesswire.com: https://www.businesswire.com/news/home/20240516779751/en/
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.
FAQ
What were Dillard's first quarter 2024 net sales?
How did Dillard's gross margin change in the first quarter of 2024?
What was Dillard's net income for the first quarter of 2024?
Did Dillard's operating expenses increase in the first quarter of 2024?
What was Dillard's earnings per share (EPS) for the first quarter of 2024?
What is Dillard's guidance for the full year of 2024?
