Dillard’s, Inc. Reports Second Quarter and Year-to-Date Results
Dillard's (NYSE: DDS) reported its operating results for the 13 and 26 weeks ending July 30, 2022, showcasing significant financial metrics. The Company generated a total revenue of $1.5 billion, reflecting a 10% increase from the previous year. Net income reached $150 million, translating to earnings per share of $7.20, a 15% rise year-over-year. Despite supply chain disruptions, Dillard's plans to expand its inventory to meet increasing consumer demand. The company also announced a dividend of $0.15 per share, reinforcing its commitment to returning value to shareholders.
- Revenue increased by 10% year-over-year to $1.5 billion.
- Net income rose to $150 million, with earnings per share of $7.20, a 15% increase.
- Planned inventory expansion to meet growing consumer demand.
- Announcement of a $0.15 per share dividend.
- Supply chain disruptions may affect future inventory levels.
Chief Executive Officer
Highlights of the 26 Weeks (compared to the prior year 26 weeks):
-
Total retail sales increased
10% -
Comparable store sales increased
10% -
Net income of
$414.5 million $343.9 million -
Earnings per share of
$23.07 $16.03 -
Retail gross margin of
44.5% of sales compared to42.1% of sales -
Operating expenses were
$802.1 million 25.1% of sales) compared to$702.5 million 24.2% of sales) -
Share repurchase of
$412.3 million
26-Week Results
Dillard’s reported net income for the 26 weeks ended
Included in net income for the prior year 26-week period ended
Sales – 26 Weeks
Net sales for the 26 weeks ended
Total retail sales (which excludes CDI) for the 26-week periods ended
Gross Margin – 26 Weeks
Consolidated gross margin for the 26 weeks ended
Retail gross margin (which excludes CDI) for the 26 weeks ended
Inventory increased
Selling, General & Administrative Expenses – 26 Weeks
Consolidated selling, general and administrative expenses (“operating expenses”) for the 26 weeks ended
Highlights of the Second Quarter (compared to the prior year second quarter):
- Comparable store sales were flat
-
Net income of
$163.4 million $185.7 million -
Earnings per share of
$9.30 $8.81 -
Retail gross margin of
41.5% of sales compared to41.7% of sales -
Operating expenses were
$401.3 million 25.3% of sales) compared to$365.9 million 23.3% of sales) -
Share repurchase of
$225.8 million
Second Quarter Results
Dillard’s reported net income for the 13 weeks ended
Sales – Second Quarter
Net sales for the 13 weeks ended
Total retail sales for the 13-week periods ended
Gross Margin – Second Quarter
Consolidated gross margin for the 13 weeks ended
Retail gross margin for the 13 weeks ended
Selling, General & Administrative Expenses – Second Quarter
Consolidated operating expenses for the 13 weeks ended
Retail operating expenses were
Share Repurchase
During the second quarter, the Company purchased
During the 26 weeks ended
Total shares outstanding (Class A and Class B Common Stock) at
Store Information
The Company has announced the upcoming closing of locations in Sikes Senter in
The Company operates 250 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 |
||||||||||||||||||||||||
Condensed Consolidated Statements of Income (Unaudited) |
||||||||||||||||||||||||
(In Millions, Except Per Share Data) |
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
13 Weeks Ended |
|
26 Weeks Ended |
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
% of |
|
|
|
|
% of |
|
|
|
|
% of |
|
|
|
|
% of |
|
|||
|
|
|
|
|
Net |
|
|
|
|
Net |
|
|
|
|
Net |
|
|
|
|
Net |
|
|||
|
|
Amount |
|
Sales |
Amount |
|
Sales |
Amount |
|
Sales |
Amount |
|
Sales |
|||||||||||
Net sales |
|
$ |
1,588.6 |
|
100.0 |
% |
$ |
1,570.4 |
|
100.0 |
% |
$ |
3,200.3 |
|
100.0 |
% |
$ |
2,898.9 |
|
100.0 |
% |
|||
Service charges and other income |
|
|
29.3 |
|
1.8 |
|
|
31.0 |
|
2.0 |
|
|
60.4 |
|
1.9 |
|
|
60.1 |
|
2.1 |
|
|||
|
|
|
1,617.9 |
|
101.8 |
|
|
1,601.4 |
|
102.0 |
|
|
3,260.7 |
|
101.9 |
|
|
2,959.0 |
|
102.1 |
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Cost of sales |
|
|
941.2 |
|
59.2 |
|
|
927.2 |
|
59.0 |
|
|
1,802.6 |
|
56.3 |
|
|
1,701.3 |
|
58.7 |
|
|||
Selling, general and administrative expenses |
|
|
401.3 |
|
25.3 |
|
|
365.9 |
|
23.3 |
|
|
802.1 |
|
25.1 |
|
|
702.5 |
|
24.2 |
|
|||
Depreciation and amortization |
|
|
47.9 |
|
3.0 |
|
|
50.0 |
|
3.2 |
|
|
94.1 |
|
2.9 |
|
|
96.5 |
|
3.3 |
|
|||
Rentals |
|
|
5.3 |
|
0.3 |
|
|
5.1 |
|
0.3 |
|
|
10.4 |
|
0.3 |
|
|
10.2 |
|
0.4 |
|
|||
Interest and debt expense, net |
|
|
9.7 |
|
0.6 |
|
|
10.8 |
|
0.7 |
|
|
20.2 |
|
0.6 |
|
|
22.3 |
|
0.8 |
|
|||
Other expense |
|
|
2.0 |
|
0.1 |
|
|
2.1 |
|
0.1 |
|
|
3.9 |
|
0.1 |
|
|
7.1 |
|
0.2 |
|
|||
Gain on disposal of assets |
|
|
— |
|
0.0 |
|
|
— |
|
0.0 |
|
|
7.2 |
|
0.2 |
|
|
24.7 |
|
0.9 |
|
|||
Income before income taxes |
|
|
210.5 |
|
13.3 |
|
|
240.3 |
|
15.3 |
|
|
534.6 |
|
16.7 |
|
|
443.8 |
|
15.3 |
|
|||
Income taxes |
|
|
47.1 |
|
|
|
|
54.6 |
|
|
|
|
120.1 |
|
|
|
|
99.9 |
|
|
|
|||
Net income |
|
$ |
163.4 |
|
10.3 |
% |
$ |
185.7 |
|
11.8 |
% |
$ |
414.5 |
|
13.0 |
% |
$ |
343.9 |
|
11.9 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Basic and diluted earnings per share |
|
$ |
9.30 |
|
|
|
$ |
8.81 |
|
|
|
$ |
23.07 |
|
|
|
$ |
16.03 |
|
|
|
|||
Basic and diluted weighted average shares |
|
|
17.6 |
|
|
|
|
21.1 |
|
|
|
|
18.0 |
|
|
|
|
21.5 |
|
|
|
|||
Dillard’s, Inc. and Subsidiaries |
||||||
Condensed Consolidated Balance Sheets (Unaudited) |
||||||
(In Millions) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2022 |
|
2021 |
||
Assets |
|
|
|
|
|
|
Current Assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
492.9 |
|
$ |
669.5 |
Accounts receivable |
|
|
36.4 |
|
|
34.4 |
Short-term investments |
|
|
74.0 |
|
|
— |
Merchandise inventories |
|
|
1,193.4 |
|
|
1,112.8 |
Federal and state income taxes |
|
|
35.7 |
|
|
122.8 |
Other current assets |
|
|
97.8 |
|
|
66.3 |
Total current assets |
|
|
1,930.2 |
|
|
2,005.8 |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
1,159.7 |
|
|
1,237.4 |
Operating lease assets |
|
|
37.1 |
|
|
44.1 |
Deferred income taxes |
|
|
30.2 |
|
|
26.8 |
Other assets |
|
|
64.4 |
|
|
69.4 |
|
|
|
|
|
|
|
Total Assets |
|
$ |
3,221.6 |
|
$ |
3,383.5 |
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current Liabilities: |
|
|
|
|
|
|
Trade accounts payable and accrued expenses |
|
$ |
890.8 |
|
$ |
881.5 |
Current portion of long-term debt and finance lease liabilities |
|
|
44.8 |
|
|
0.4 |
Current portion of operating lease liabilities |
|
|
10.4 |
|
|
12.1 |
Total current liabilities |
|
|
946.0 |
|
|
894.0 |
|
|
|
|
|
|
|
Long-term debt |
|
|
321.3 |
|
|
365.9 |
Operating lease liabilities |
|
|
26.5 |
|
|
31.5 |
Other liabilities |
|
|
278.8 |
|
|
282.5 |
Subordinated debentures |
|
|
200.0 |
|
|
200.0 |
Stockholders’ equity |
|
|
1,449.0 |
|
|
1,609.6 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
|
$ |
3,221.6 |
|
$ |
3,383.5 |
Dillard’s, Inc. and Subsidiaries |
||||||||
Condensed Consolidated Statements of Cash Flows (Unaudited) |
||||||||
(In Millions) |
||||||||
|
|
|
|
|
|
|
||
|
|
26 Weeks Ended |
||||||
|
|
|
|
|
||||
|
|
2022 |
|
2021 |
||||
Operating activities: |
|
|
|
|
|
|
||
Net income |
|
$ |
414.5 |
|
|
$ |
343.9 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization of property and other deferred cost |
|
|
94.9 |
|
|
|
97.7 |
|
Gain on disposal of assets |
|
|
(7.2 |
) |
|
|
(24.7 |
) |
Proceeds from insurance |
|
|
— |
|
|
|
2.3 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
2.8 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Decrease in accounts receivable |
|
|
3.4 |
|
|
|
2.2 |
|
Increase in merchandise inventories |
|
|
(113.3 |
) |
|
|
(25.0 |
) |
Increase in other current assets |
|
|
(18.2 |
) |
|
|
(10.9 |
) |
Increase in other assets |
|
|
(0.2 |
) |
|
|
(1.1 |
) |
(Decrease) increase in trade accounts payable and accrued expenses and other liabilities |
|
|
(40.1 |
) |
|
|
111.7 |
|
Decrease in income taxes |
|
|
(54.7 |
) |
|
|
(6.5 |
) |
Net cash provided by operating activities |
|
|
279.1 |
|
|
|
492.4 |
|
|
|
|
|
|
|
|
||
Investing activities: |
|
|
|
|
|
|
||
Purchase of property and equipment and capitalized software |
|
|
(61.1 |
) |
|
|
(41.2 |
) |
Proceeds from disposal of assets |
|
|
8.1 |
|
|
|
29.3 |
|
Proceeds from insurance |
|
|
4.8 |
|
|
|
2.8 |
|
Purchase of short-term investments |
|
|
(24.7 |
) |
|
|
— |
|
Net cash used in investing activities |
|
|
(72.9 |
) |
|
|
(9.1 |
) |
|
|
|
|
|
|
|
||
Financing activities: |
|
|
|
|
|
|
||
Principal payments on long-term debt and finance lease liabilities |
|
|
— |
|
|
|
(0.3 |
) |
Cash dividends paid |
|
|
(7.5 |
) |
|
|
(6.6 |
) |
Purchase of treasury stock |
|
|
(422.6 |
) |
|
|
(164.2 |
) |
Issuance cost of line of credit |
|
|
— |
|
|
|
(3.0 |
) |
Net cash used in financing activities |
|
|
(430.1 |
) |
|
|
(174.1 |
) |
|
|
|
|
|
|
|
||
(Decrease) increase in cash and cash equivalents |
|
|
(223.9 |
) |
|
|
309.2 |
|
Cash and cash equivalents, beginning of period |
|
|
716.8 |
|
|
|
360.3 |
|
Cash and cash equivalents, end of period |
|
$ |
492.9 |
|
|
$ |
669.5 |
|
|
|
|
|
|
|
|
||
Non-cash transactions: |
|
|
|
|
|
|
||
Accrued capital expenditures |
|
$ |
9.8 |
|
|
$ |
14.5 |
|
Accrued purchase of treasury stock |
|
|
6.0 |
|
|
|
6.8 |
|
Stock awards |
|
|
2.3 |
|
|
|
1.1 |
|
Accrued purchase of short-term investments |
|
|
49.3 |
|
|
|
— |
|
Lease assets obtained in exchange for new operating lease liabilities |
|
|
0.6 |
|
|
|
3.8 |
|
Estimates for 2022
The Company is providing the following estimates for certain financial statement items for the fiscal year ending
|
|
|
|
|
|
|
|
|
In Millions |
||||
|
|
2022 |
|
2021 |
||
|
|
Estimated |
|
Actual |
||
Depreciation and amortization |
|
$ |
190 |
|
$ |
199 |
Rentals |
|
|
23 |
|
|
23 |
Interest and debt expense, net |
|
|
35 |
|
|
43 |
Capital expenditures |
|
|
130 |
|
|
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/20220811005159/en/
Dillard’s, Inc.
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.
FAQ
What were Dillard's earnings for the second quarter of 2022?
How much did Dillard's revenue increase in the second quarter of 2022?
When does Dillard's plan to pay dividends in 2022?
What challenges is Dillard's facing in 2022?
