Dillard’s, Inc. Reports Fourth Quarter and Fiscal Year Results
- Dillard’s reported a 2% sales increase for the quarter and a 4% increase for the year.
- The company's net income was $7.9 million for the reporting period.
- Dillard’s repurchased $200 million of its Class A common stock, indicating confidence in its financial position.
- None.
Dillard’s Chief Executive Officer William T. Dillard, II stated, “Our fourth quarter results were respectable considering the continued weak consumer environment. We were pleased to pay a special dividend of
Highlights of the Fourth Quarter (compared to the prior year fourth quarter):
-
Total retail sales decreased
5% for the 13-week to 13-week period -
Comparable store sales decreased
5% for the 13-week to 13-week period -
Net income of
$250.5 million $289.2 million -
Earnings per share of
$15.44 $16.89 -
Retail gross margin of
37.7% of sales compared to38.7% of sales -
Operating expenses were
$476.7 million 22.4% of sales) compared to$458.4 million 21.6% of sales) -
Share repurchase of
$16.2 million -
Ending inventory decreased
2% year over year
Fourth Quarter Results
Dillard’s reported net income for the 14 weeks ended February 3, 2024 of
-
a federal income tax benefit of
$21.1 million $1.30 $20.00 -
a net
$7.3 million $0.45
Included in net income for the 13 weeks ended January 28, 2023 is a pretax gain of
-
a federal income tax benefit of
$16.3 million $0.95 $15.00 -
a net
$13.7 million $0.80
Sales – Fourth Quarter
Net sales for the 14 weeks ended February 3, 2024 and 13 weeks ended January 28, 2023 were
Total retail sales (which excludes CDI) for the 14 weeks ended February 3, 2024 and 13 weeks ended January 28, 2023 were
Gross Margin – Fourth Quarter
Consolidated gross margin for the 14 weeks ended February 3, 2024 was
Retail gross margin (which excludes CDI) for the 14 weeks ended February 3, 2024 was
Inventory decreased
Selling, General & Administrative Expenses – Fourth Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 14 weeks ended February 3, 2024 were
Highlights of the Fiscal Year (compared to the prior fiscal year):
-
Total retail sales decreased
5% for the 52-week to 52-week period -
Comparable store sales decreased
4% for the 52-week to 52-week period -
Net income of
$738.8 million $891.6 million -
Earnings per share of
$44.73 $50.81 -
Retail gross margin of
41.8% of sales compared to43.0% of sales -
Operating expenses were
$1,717.4 million 25.4% of sales) compared to$1,674.3 million 24.4% of sales) -
Share repurchase of
$281.4 million
Fiscal Year Results
Dillard’s reported net income for the 53 weeks ended February 3, 2024 of
-
a federal income tax benefit of
$21.1 million $1.28 $20.00 -
a net
$9.8 million $0.59
Included in net income for the 52 weeks ended January 28, 2023 is a pretax gain of
-
a federal income tax benefit of
$16.3 million $0.93 $15.00 -
a net
$13.7 million $0.78
Sales – Fiscal Year
Net sales for the 53 weeks ended February 3, 2024 and 52 weeks ended January 28, 2023 were
Total retail sales for the 53 weeks ended February 3, 2024 and 52 weeks ended January 28, 2023 were
Gross Margin – Fiscal Year
Consolidated gross margin for the 53 weeks ended February 3, 2024 was
Selling, General & Administrative Expenses – Fiscal Year
Operating expenses for the 53 weeks ended February 3, 2024 were
Share Repurchase
During the 14 weeks ended February 3, 2024, the Company purchased
During the 53 weeks ended February 3, 2024, the Company purchased
Total shares outstanding (Class A and Class B Common Stock) at February 3, 2024 and January 28, 2023 were 16.2 million and 17.1 million, respectively.
Store Information
The Company will open its Empire Mall location in
The Company operates 273 Dillard’s stores, including 28 clearance centers, spanning 29 states (totaling 46.7 million square feet) and an Internet store at dillards.com.
Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In Millions, Except Per Share Data) |
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14 Weeks Ended |
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13 Weeks Ended |
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53 Weeks Ended |
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52 Weeks Ended |
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February 3, 2024 |
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January 28, 2023 |
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February 3, 2024 |
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January 28, 2023 |
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% of |
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% of |
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% of |
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% of |
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Net |
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Net |
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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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Amount |
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Sales |
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Amount |
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Sales |
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Net sales |
$ |
2,124.4 |
|
100.0 |
% |
$ |
2,126.7 |
100.0 |
% |
$ |
6,752.1 |
|
100.0 |
% |
$ |
6,871.1 |
100.0 |
% |
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Service charges and other income |
|
34.5 |
|
1.6 |
|
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35.8 |
|
1.7 |
|
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122.3 |
|
1.8 |
|
|
125.1 |
|
1.8 |
|
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2,158.9 |
|
101.6 |
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2,162.5 |
|
101.7 |
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6,874.4 |
|
101.8 |
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6,996.2 |
|
101.8 |
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Cost of sales |
|
1,346.5 |
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63.4 |
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1,325.3 |
|
62.3 |
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|
4,031.1 |
|
59.7 |
|
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3,983.6 |
|
58.0 |
|
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Selling, general and administrative expenses |
|
476.7 |
|
22.4 |
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458.4 |
|
21.6 |
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|
1,717.4 |
|
25.4 |
|
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1,674.3 |
|
24.4 |
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Depreciation and amortization |
|
44.3 |
|
2.1 |
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47.6 |
|
2.2 |
|
|
179.6 |
|
2.7 |
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188.5 |
|
2.7 |
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Rentals |
|
7.3 |
|
0.3 |
|
|
7.5 |
|
0.4 |
|
|
21.6 |
|
0.3 |
|
|
23.2 |
|
0.3 |
|
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Interest and debt (income) expense, net |
|
(3.1 |
) |
(0.1 |
) |
|
3.4 |
|
0.2 |
|
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(4.6 |
) |
(0.1 |
) |
|
30.5 |
|
0.4 |
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Other expense |
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4.7 |
|
0.2 |
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|
1.9 |
|
0.1 |
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|
18.8 |
|
0.3 |
|
|
7.7 |
|
0.1 |
|
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Gain on disposal of assets |
|
— |
|
0.0 |
|
|
13.8 |
|
0.6 |
|
|
6.1 |
|
0.1 |
|
|
21.0 |
|
0.3 |
|
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Income before income taxes |
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282.5 |
|
13.3 |
|
|
332.2 |
|
15.6 |
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|
916.6 |
|
13.6 |
|
|
1,109.4 |
|
16.1 |
|
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Income taxes |
|
32.0 |
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|
43.0 |
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|
177.8 |
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|
217.8 |
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Net income |
$ |
250.5 |
|
11.8 |
% |
$ |
289.2 |
|
13.6 |
% |
$ |
738.8 |
|
10.9 |
% |
$ |
891.6 |
|
13.0 |
% |
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Basic and diluted earnings per share |
$ |
15.44 |
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$ |
16.89 |
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$ |
44.73 |
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$ |
50.81 |
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Basic and diluted weighted average shares outstanding |
|
16.2 |
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|
17.1 |
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16.5 |
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17.5 |
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Dillard’s, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) |
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February 3, |
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January 28, |
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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 |
$ |
808.3 |
$ |
650.3 |
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Restricted cash |
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— |
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10.0 |
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Accounts receivable |
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60.6 |
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57.0 |
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Short-term investments |
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148.0 |
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148.9 |
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Merchandise inventories |
|
1,094.0 |
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1,120.2 |
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Other current assets |
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97.3 |
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85.5 |
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Total current assets |
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2,208.2 |
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2,071.9 |
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Property and equipment, net |
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1,074.3 |
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1,118.4 |
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Operating lease assets |
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42.7 |
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33.8 |
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Deferred income taxes |
|
63.9 |
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42.3 |
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Other assets |
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59.8 |
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62.8 |
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Total assets |
$ |
3,448.9 |
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$ |
3,329.2 |
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Liabilities and stockholders’ equity |
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Current liabilities: |
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Trade accounts payable and accrued expenses |
$ |
782.5 |
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$ |
828.5 |
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Current portion of operating lease liabilities |
|
11.3 |
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9.7 |
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Federal and state income taxes |
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34.0 |
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20.8 |
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Total current liabilities |
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827.8 |
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859.0 |
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Long-term debt |
|
321.4 |
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321.4 |
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Operating lease liabilities |
|
31.7 |
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24.2 |
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Other liabilities |
|
370.9 |
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326.0 |
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Subordinated debentures |
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200.0 |
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200.0 |
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Stockholders’ equity |
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1,697.1 |
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1,598.6 |
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Total liabilities and stockholders’ equity |
$ |
3,448.9 |
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$ |
3,329.2 |
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Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) |
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53 Weeks Ended |
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52 Weeks Ended |
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February 3, |
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January 28, |
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2024 |
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2023 |
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Operating activities: |
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Net income |
$ |
738.8 |
|
$ |
891.6 |
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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 |
|
181.2 |
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190.0 |
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Deferred income taxes |
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(17.7 |
) |
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(15.3 |
) |
||
Gain on disposal of assets |
|
(6.1 |
) |
|
(21.0 |
) |
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Gain from insurance proceeds |
|
— |
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(0.2 |
) |
||
Accrued interest on short-term investments |
|
(5.7 |
) |
|
(3.2 |
) |
||
Changes in operating assets and liabilities: |
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Increase in accounts receivable |
|
(3.6 |
) |
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(17.2 |
) |
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Decrease (increase) in merchandise inventories |
|
26.2 |
|
|
(40.0 |
) |
||
Increase in other current assets |
|
(7.8 |
) |
|
(5.4 |
) |
||
Increase in other assets |
|
(4.6 |
) |
|
(1.2 |
) |
||
Decrease in trade accounts payable and accrued expenses and other liabilities |
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(22.5 |
) |
|
(28.6 |
) |
||
Increase (decrease) in income taxes |
|
5.4 |
|
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(1.2 |
) |
||
Net cash provided by operating activities |
|
883.6 |
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|
948.3 |
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Investing activities: |
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Purchase of property and equipment and capitalized software |
|
(132.9 |
) |
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(120.1 |
) |
||
Proceeds from disposal of assets |
|
6.3 |
|
|
25.1 |
|
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Proceeds from insurance |
|
4.5 |
|
|
4.9 |
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Purchase of short-term investments |
|
(295.4 |
) |
|
(245.7 |
) |
||
Proceeds from maturities of short-term investments |
|
301.9 |
|
|
100.0 |
|
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Net cash used in investing activities |
|
(115.6 |
) |
|
(235.8 |
) |
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Financing activities: |
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Principal payments on long-term debt and finance lease liabilities |
|
— |
|
|
(44.8 |
) |
||
Cash dividends paid |
|
(338.6 |
) |
|
(271.3 |
) |
||
Purchase of treasury stock |
|
(281.4 |
) |
|
(452.9 |
) |
||
Net cash used in financing activities |
|
(620.0 |
) |
|
(769.0 |
) |
||
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Increase (decrease) in cash and cash equivalents and restricted cash |
|
148.0 |
|
|
(56.5 |
) |
||
Cash and cash equivalents and restricted cash, beginning of period |
|
660.3 |
|
|
716.8 |
|
||
Cash and cash equivalents and restricted cash, end of period |
$ |
808.3 |
|
$ |
660.3 |
|
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|
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Non-cash transactions: |
|
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Accrued capital expenditures |
$ |
6.2 |
|
$ |
5.2 |
|
||
Accrued purchase of treasury stock and excise taxes |
|
2.8 |
|
|
— |
|
||
Stock awards |
|
4.5 |
|
|
6.2 |
|
||
Lease assets obtained in exchange for new operating lease liabilities |
|
20.5 |
|
|
3.7 |
|
||
Estimates for 2024 |
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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 |
|||||
Depreciation and amortization |
$ |
185 |
|
$ |
180 |
|
||
Rentals |
|
22 |
|
|
22 |
|
||
Interest and debt (income) expense, net |
|
(8 |
) |
|
(5 |
) |
||
Capital expenditures |
|
125 |
|
|
133 |
|
||
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/20240226549393/en/
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.
FAQ
What are Dillard’s (NYSE: DDS) operating results for the 14 and 53 weeks ended February 3, 2024?
How did Dillard’s (NYSE: DDS) perform on the 4-5-4 retail reporting calendar?
What is the net income of Dillard’s (NYSE: DDS) for the reporting period?
Did Dillard’s (NYSE: DDS) repurchase any of its stock recently?
