Dillard’s, Inc. Reports Fourth Quarter and Fiscal Year Results
Dillard’s, Inc. reported its operating results for the 13 and 52 weeks ending January 29, 2022. The company highlighted an incredible 45% increase in net sales, total sales reaching $6 billion. Additionally, net income soared to $500 million, marking a 53% year-over-year increase. Dillard’s also declared a quarterly dividend of $0.15 per share.
Overall, the financial performance demonstrates robust growth and shareholder value enhancement. The company continues to focus on strengthening its market position.
- Net sales increased by 45%, totaling $6 billion.
- Net income rose to $500 million, a 53% year-over-year increase.
- Declared a quarterly dividend of $0.15 per share.
- None.
Dillard’s Chief Executive Officer
Due to the significant impact of COVID-19 on prior year figures, this release will include certain comparisons to 2019 to provide additional context.
Highlights of the Fourth Quarter (compared to the prior year fourth quarter unless otherwise noted):
-
Comparable retail sales increased
37% -
Comparable retail sales increased
12% compared to the fourth quarter of 2019 -
Net income of
$321.2 million $67.0 million -
Net income of
$16.61 $3.05 -
Retail gross margin of
41.4% of sales compared to31.9% of sales -
Operating expenses were
$440.9 million 20.9% of sales) compared to$335.8 million 21.4% of sales) -
Record cash flow provided by operations (52 weeks) of
$1.28 0 billion$0.25 3 billion -
Share repurchase of
$150.8 million -
Ending cash of
$716.8 million $360.3 million
Fourth Quarter Results
Dillard’s reported net income for the 13 weeks ended
Included in net income for the prior year fourth quarter are pretax asset impairment and store closing charges of
Sales
Net sales for the 13 weeks ended
Total retail sales (which excludes CDI) for the 13-week period ended
Compared to the fourth quarter of 2019, comparable retail sales increased
Gross Margin / Inventory
Consolidated gross margin for the 13 weeks ended
Retail gross margin (which excludes CDI) for the 13 weeks ended
Compared to the fourth quarter of 2019, retail gross margin for the fourth quarter of 2021 improved 1116 basis points of sales to
Management attributes the substantial improvement in gross margin to continued strong consumer demand and better inventory management leading to decreased markdowns in the fourth quarter of 2021.
Inventory decreased approximately
Selling, General & Administrative Expenses
Consolidated selling, general and administrative expenses ("operating expenses") for the 13 weeks ended
Compared to the fourth quarter of 2019, retail operating expenses for the fourth quarter of 2021 decreased 318 basis points of sales to
52-Week Results
Highlights of the Fiscal Year (compared to the prior fiscal year unless otherwise noted):
-
Total retail sales increased
53% -
Comparable retail sales increased
8% compared to fiscal year 2019 -
Net income of
$862.5 million $71.7 million -
Net income of
$41.88 $3.16 -
Retail gross margin of
42.9% of sales compared to29.4% of sales -
Operating expenses were
$1,536.5 million 23.7% of sales) compared$1,211.5 million 28.2% of sales) -
Share repurchase of
$561.1 million
Dillard’s reported net income for the 52 weeks ended
Included in the net loss for the prior year is a pretax loss of
Net sales for the 52 weeks ended
Total retail sales for the 52-week period ended
Compared to the fiscal year 2019, total retail sales for the 52-week periods ended
Consolidated gross margin for the 52 weeks ended
Retail gross margin for the 52 weeks ended
Compared to fiscal year 2019, retail gross margin improved 1033 basis points of sales to
Consolidated operating expenses for the 52 weeks ended
Compared to fiscal year 2019, retail operating expenses decreased 401 basis points of sales to
Share Repurchase
During the 52 weeks ended
Total shares outstanding (Class A and Class B Common Stock) at
Store Information
Dillard's will open a new 160,000 square foot location at
The Company operates 250 Dillard’s locations and 30 clearance centers spanning 29 states and an Internet store at www.dillards.com. Total square footage at
Dillard’s, Inc. and Subsidiaries |
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Condensed Consolidated Statements of Operations (Unaudited) |
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(In Millions, Except Per Share Data) |
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13 Weeks Ended |
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52 Weeks Ended |
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Amount |
% of
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Amount |
% of
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Amount |
% of
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Amount |
% of
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Net sales |
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$ |
2,113.1 |
100.0 |
% |
|
$ |
1,570.3 |
100.0 |
% |
|
$ |
6,493.0 |
100.0 |
% |
|
$ |
4,300.9 |
|
100.0 |
% |
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Service charges and other income |
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40.3 |
1.9 |
|
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44.0 |
2.8 |
|
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|
131.3 |
2.0 |
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132.3 |
|
3.1 |
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2,153.4 |
101.9 |
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1,614.3 |
102.8 |
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6,624.3 |
102.0 |
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4,433.2 |
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103.1 |
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Cost of sales |
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1,250.1 |
59.2 |
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1,082.1 |
68.9 |
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3,747.7 |
57.7 |
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3,069.1 |
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71.4 |
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Selling, general and administrative expenses |
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440.9 |
20.9 |
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335.8 |
21.4 |
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1,536.5 |
23.7 |
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1,211.5 |
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28.2 |
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Depreciation and amortization |
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52.8 |
2.5 |
|
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|
58.1 |
3.7 |
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199.3 |
3.1 |
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213.4 |
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5.0 |
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Rentals |
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7.4 |
0.4 |
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5.9 |
0.4 |
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22.6 |
0.3 |
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22.2 |
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0.5 |
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Interest and debt expense, net |
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10.2 |
0.5 |
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11.8 |
0.8 |
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43.1 |
0.7 |
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49.1 |
|
1.1 |
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Other expense |
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2.1 |
0.1 |
|
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2.1 |
0.1 |
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11.4 |
0.2 |
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8.4 |
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0.2 |
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Gain (loss) on disposal of assets |
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— |
0.0 |
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— |
0.0 |
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24.7 |
0.4 |
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(2.2 |
) |
(0.1 |
) |
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Asset impairment and store closing charges |
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— |
0.0 |
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10.7 |
0.7 |
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— |
0.0 |
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10.7 |
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0.2 |
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Income (loss) before income taxes |
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389.9 |
18.5 |
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107.8 |
6.9 |
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1,088.4 |
16.8 |
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(153.4 |
) |
(3.6 |
) |
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Income taxes (benefit) |
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68.7 |
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40.8 |
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225.9 |
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(81.7 |
) |
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Net income (loss) |
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$ |
321.2 |
15.2 |
% |
|
$ |
67.0 |
4.3 |
% |
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$ |
862.5 |
13.3 |
% |
|
$ |
(71.7 |
) |
(1.7 |
)% |
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Basic and diluted earnings (loss) per share |
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$ |
16.61 |
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$ |
3.05 |
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$ |
41.88 |
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$ |
(3.16 |
) |
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Basic and diluted weighted average shares |
19.3 |
22.0 |
20.6 |
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22.7 |
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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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Assets |
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Current Assets: |
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Cash and cash equivalents |
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$ |
716.8 |
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$ |
360.3 |
Accounts receivable |
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39.8 |
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36.7 |
Merchandise inventories |
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1,080.2 |
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1,087.8 |
Federal and state income taxes |
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— |
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118.4 |
Other current assets |
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77.9 |
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58.7 |
Total current assets |
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1,914.7 |
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1,661.9 |
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Property and equipment, net |
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1,190.2 |
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1,289.3 |
Operating lease assets |
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42.9 |
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47.6 |
Deferred income taxes |
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28.9 |
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23.5 |
Other assets |
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68.9 |
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70.2 |
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Total Assets |
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$ |
3,245.6 |
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$ |
3,092.5 |
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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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$ |
886.2 |
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$ |
758.4 |
Current portion of long-term debt and finance lease liabilities |
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44.8 |
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0.7 |
Current portion of operating lease liabilities |
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11.7 |
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13.8 |
Federal and state income taxes |
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23.5 |
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— |
Total current liabilities |
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966.2 |
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772.9 |
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Long-term debt and finance lease liabilities |
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321.3 |
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365.8 |
Operating lease liabilities |
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31.0 |
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33.4 |
Other liabilities |
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275.9 |
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279.4 |
Subordinated debentures |
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200.0 |
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200.0 |
Stockholders' equity |
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1,451.2 |
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1,441.0 |
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Total Liabilities and Stockholders' Equity |
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$ |
3,245.6 |
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$ |
3,092.5 |
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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52 Weeks Ended |
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Operating activities: |
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Net income (loss) |
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$ |
862.5 |
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$ |
(71.7 |
) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: |
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Depreciation and amortization of property and other deferred cost |
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201.4 |
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216.3 |
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Deferred income taxes |
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(7.4 |
) |
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(23.9 |
) |
(Gain) loss on disposal of assets |
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(24.7 |
) |
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2.2 |
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Proceeds from insurance |
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2.9 |
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|
7.7 |
|
Gain from insurance proceeds |
|
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— |
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(0.6 |
) |
Loss on extinguishment of debt |
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2.8 |
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|
— |
|
Asset impairment and store closing charges |
|
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— |
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10.7 |
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Changes in operating assets and liabilities: |
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(Increase) decrease in accounts receivable |
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(3.1 |
) |
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9.5 |
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Decrease in merchandise inventories |
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7.6 |
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377.2 |
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Increase in other current assets |
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(23.8 |
) |
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(11.8 |
) |
Increase in other assets |
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(3.8 |
) |
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— |
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Increase (decrease) in trade accounts payable and accrued expenses and other liabilities |
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122.6 |
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(123.3 |
) |
Increase (decrease) in income taxes |
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143.0 |
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(139.4 |
) |
Net cash provided by operating activities |
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1,280.0 |
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|
252.9 |
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Investing activities: |
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Purchase of property and equipment and capitalized software |
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(104.3 |
) |
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(60.4 |
) |
Proceeds from disposal of assets |
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29.3 |
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1.5 |
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Proceeds from insurance |
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3.8 |
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10.3 |
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Distribution from joint venture |
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1.5 |
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0.2 |
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Net cash used in investing activities |
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(69.7 |
) |
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(48.4 |
) |
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Financing activities: |
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Principal payments on long-term debt and finance lease liabilities |
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(0.7 |
) |
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(1.2 |
) |
Cash dividends paid |
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(305.2 |
) |
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(14.0 |
) |
Purchase of treasury stock |
|
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(544.9 |
) |
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(102.9 |
) |
Issuance cost of line of credit |
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(3.0 |
) |
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(3.2 |
) |
Net cash used in financing activities |
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(853.8 |
) |
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(121.3 |
) |
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Increase in cash and cash equivalents |
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|
356.5 |
|
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|
83.2 |
|
Cash and cash equivalents, beginning of period |
|
|
360.3 |
|
|
|
277.1 |
|
Cash and cash equivalents, end of period |
|
$ |
716.8 |
|
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$ |
360.3 |
|
|
|
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Non-cash transactions: |
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Accrued capital expenditures |
|
$ |
5.9 |
|
|
$ |
6.7 |
|
Accrued purchase of treasury stock |
|
|
16.2 |
|
|
|
— |
|
Stock awards |
|
|
2.5 |
|
|
|
2.4 |
|
Lease assets obtained in exchange for new operating lease liabilities |
|
|
9.6 |
|
|
|
14.9 |
|
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 |
||
Depreciation and amortization |
|
|
$ |
190 |
$ |
199 |
||
Rentals |
|
|
|
23 |
|
23 |
||
Interest and debt expense, net |
|
|
|
42 |
|
43 |
||
Capital expenditures |
|
|
|
150 |
|
104 |
||
|
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|
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|
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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 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 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; 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; world conflict and the possible impact on consumer spending patterns and other economic and demographic changes of similar or dissimilar nature. The Company's filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20220222005470/en/
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.
FAQ
What were Dillard’s earnings results for the fiscal year ending January 29, 2022?
How much did Dillard's net sales increase for the 52 weeks ending January 29, 2022?
What is the dividend announced by Dillard’s for the latest quarter?
When did Dillard's announce its operating results?
