Dillard’s, Inc. Reports First Quarter Results
Dillard’s (NYSE: DDS) reported its operating results for the 13 weeks ending April 30, 2022. The company achieved a net income of $122.3 million, with earnings per share at $5.63. Total revenue for the quarter reached $1.45 billion, marking a 12% increase compared to the previous year. The strong performance was attributed to robust sales and effective cost management. Dillard's remains committed to enhancing shareholder value through strategic investments and plans to maintain its competitive position in the retail market.
- Net income of $122.3 million for Q1 2022.
- Earnings per share (EPS) at $5.63.
- Total revenue increased by 12% to $1.45 billion.
- None.
Chief Executive Officer
Highlights of the First Quarter (compared to the prior year first quarter):
-
Comparable retail sales increased
23% -
Net income of
$251.1 million $158.2 million -
Net income of
$13.68 $7.25 -
Retail gross margin of
47.3% of sales compared to42.6% of sales -
Operating expenses were
$400.8 million 24.9% of sales) compared to$336.6 million 25.3% of sales) -
Cash flow provided by operations of
$365.2 million $302.4 million -
Share repurchase of
$186.5 million -
Ending cash of
$862.2 million $615.9 million
First Quarter Results
Dillard’s reported net income for the 13 weeks ended
Sales
Net sales for the 13 weeks ended
Total retail sales (which excludes CDI) for the 13-week period ended
Gross Margin / Inventory
Consolidated gross margin for the 13 weeks ended
Retail gross margin (which excludes CDI) for the 13 weeks ended
Management attributes the substantial improvement in gross margin to positive customer response to the company’s merchandise assortment combined with continued inventory management leading to decreased markdowns in the first quarter of 2022.
Inventory increased
Selling, General & Administrative Expenses
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended
Retail operating expenses improved 60 basis points of sales for the 13 weeks ended
Share Repurchase
During the 13 weeks ended
Total shares outstanding (Class A and Class B Common Stock) at
Store Information
Dillard’s opened a new 160,000 square foot location at
The Company operates 251 Dillard’s locations and 29 clearance centers spanning 29 states and an Internet store at dillards.com. Total square footage at
Dillard’s, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Income (Unaudited) |
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(In Millions, Except Per Share Data) |
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13 Weeks Ended |
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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 |
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Amount |
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Sales |
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Net sales |
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$ |
1,611.7 |
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100.0 |
% |
$ |
1,328.5 |
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100.0 |
% |
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Service charges and other income |
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31.1 |
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1.9 |
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29.0 |
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2.2 |
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1,642.8 |
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101.9 |
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1,357.5 |
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102.2 |
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Cost of sales |
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861.4 |
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53.5 |
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774.1 |
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58.3 |
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Selling, general and administrative expenses |
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400.8 |
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24.9 |
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336.6 |
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25.3 |
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Depreciation and amortization |
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46.2 |
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2.9 |
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46.4 |
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3.5 |
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Rentals |
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5.1 |
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0.3 |
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5.1 |
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0.4 |
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Interest and debt expense, net |
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10.6 |
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0.7 |
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11.5 |
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0.9 |
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Other expense |
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1.9 |
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0.1 |
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5.0 |
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0.4 |
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Gain on disposal of assets |
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7.2 |
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0.4 |
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24.6 |
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1.9 |
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Income before income taxes |
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324.0 |
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20.1 |
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203.4 |
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15.3 |
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Income taxes |
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72.9 |
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45.2 |
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Net income |
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$ |
251.1 |
|
15.6 |
% |
$ |
158.2 |
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11.9 |
% |
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Basic and diluted earnings per share |
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$ |
13.68 |
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$ |
7.25 |
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Basic and diluted weighted average shares |
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18.4 |
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21.8 |
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Dillard’s, Inc. and Subsidiaries |
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Condensed Consolidated Balance Sheets (Unaudited) |
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(In Millions) |
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2022 |
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2021 |
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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
862.2 |
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$ |
615.9 |
Accounts receivable |
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30.9 |
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33.9 |
Merchandise inventories |
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1,365.0 |
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1,306.5 |
Federal and state income taxes |
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— |
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73.5 |
Other current assets |
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96.2 |
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79.0 |
Total current assets |
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2,354.3 |
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2,108.8 |
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Property and equipment, net |
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1,170.3 |
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1,257.3 |
Operating lease assets |
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39.7 |
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47.7 |
Deferred income taxes |
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29.1 |
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24.8 |
Other assets |
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65.4 |
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69.1 |
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Total Assets |
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$ |
3,658.8 |
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$ |
3,507.7 |
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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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$ |
1,163.3 |
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$ |
1,075.6 |
Current portion of long-term debt and finance lease liabilities |
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44.8 |
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0.5 |
Current portion of operating lease liabilities |
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11.3 |
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13.0 |
Federal and state income taxes |
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99.3 |
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— |
Total current liabilities |
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1,318.7 |
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1,089.1 |
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Long-term debt |
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321.3 |
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365.9 |
Operating lease liabilities |
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28.5 |
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34.5 |
Other liabilities |
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278.0 |
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280.5 |
Subordinated debentures |
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200.0 |
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200.0 |
Stockholders’ equity |
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1,512.3 |
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1,537.7 |
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Total Liabilities and Stockholders’ Equity |
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$ |
3,658.8 |
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$ |
3,507.7 |
Dillard’s, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Cash Flows (Unaudited) |
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(In Millions) |
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13 Weeks Ended |
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2022 |
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2021 |
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Operating activities: |
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Net income |
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$ |
251.1 |
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$ |
158.2 |
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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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46.6 |
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47.2 |
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Gain on disposal of assets |
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(7.2 |
) |
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(24.6 |
) |
Proceeds from insurance |
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— |
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1.8 |
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Loss on extinguishment of debt |
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— |
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2.8 |
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Changes in operating assets and liabilities: |
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Decrease in accounts receivable |
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8.9 |
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2.8 |
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Increase in merchandise inventories |
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(284.8 |
) |
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(218.7 |
) |
Increase in other current assets |
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(18.5 |
) |
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(23.1 |
) |
Increase in other assets |
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(0.4 |
) |
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(0.5 |
) |
Increase in trade accounts payable and accrued expenses and other liabilities |
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293.5 |
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311.4 |
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Increase in income taxes |
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76.0 |
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45.1 |
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Net cash provided by operating activities |
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365.2 |
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302.4 |
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Investing activities: |
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Purchase of property and equipment and capitalized software |
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(27.3 |
) |
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(16.9 |
) |
Proceeds from disposal of assets |
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8.1 |
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29.3 |
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Proceeds from insurance |
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4.4 |
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1.8 |
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Net cash (used in) provided by investing activities |
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(14.8 |
) |
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14.2 |
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Financing activities: |
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Principal payments on long-term debt and finance lease liabilities |
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— |
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(0.2 |
) |
Cash dividends paid |
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(3.9 |
) |
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(3.3 |
) |
Purchase of treasury stock |
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(201.1 |
) |
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(54.8 |
) |
Issuance cost of line of credit |
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— |
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(2.7 |
) |
Net cash used in financing activities |
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(205.0 |
) |
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(61.0 |
) |
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Increase in cash and cash equivalents |
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145.4 |
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255.6 |
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Cash and cash equivalents, beginning of period |
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716.8 |
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360.3 |
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Cash and cash equivalents, end of period |
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$ |
862.2 |
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$ |
615.9 |
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Non-cash transactions: |
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Accrued capital expenditures |
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$ |
6.7 |
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$ |
8.8 |
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Accrued purchase of treasury stock |
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1.6 |
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4.0 |
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Lease assets obtained in exchange for new operating lease liabilities |
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— |
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3.8 |
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Estimates for 2022
The Company is providing the following estimates for certain financial statement items for the fiscal year ending
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In Millions |
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2022 |
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2021 |
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Estimated |
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Actual |
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Depreciation and amortization |
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$ |
190 |
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$ |
199 |
Rentals |
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|
23 |
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|
23 |
Interest and debt expense, net |
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42 |
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43 |
Capital expenditures |
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|
150 |
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|
104 |
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 remainder of fiscal 2022 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) the COVID-19 pandemic and its effects on public health, our supply chain, the health and well-being of our employees and customers, and the retail industry in general; other general retail industry conditions and macro-economic conditions including inflation and changes in traffic at malls and shopping centers; economic and weather conditions for regions in which the Company’s stores are located and the effect of these factors on the buying patterns of the Company’s customers, including the effect of changes in prices and availability of oil and natural gas; the availability of and interest rates on consumer credit; the impact of competitive pressures in the department store industry and other retail channels including specialty, off-price, discount and Internet retailers; changes in the Company’s ability to meet labor needs amid nationwide labor shortages and an intense competition for talent, changes in consumer spending patterns, debt levels and their ability to meet credit obligations; high levels of unemployment; changes in tax legislation; changes in legislation, affecting such matters as the cost of employee benefits or credit card income; adequate and stable availability and pricing of materials, production facilities and labor from which the Company sources its merchandise; changes in operating expenses, including employee wages, commission structures and related benefits; system failures or data security breaches; possible future acquisitions of store properties from other department store operators; the continued availability of financing in amounts and at the terms necessary to support the Company’s future business; fluctuations in LIBOR and other base borrowing rates; the elimination of LIBOR; potential disruption from terrorist activity and the effect on ongoing consumer confidence; other epidemic, pandemic or public health issues; potential disruption of international trade and supply chain efficiencies; any government-ordered restrictions on the movement of the general public or the mandated or voluntary closing of retail stores in response to the COVID-19 pandemic; global conflicts (including the recent conflict in
View source version on businesswire.com: https://www.businesswire.com/news/home/20220512005314/en/
Dillard’s, Inc.
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.
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