Dillard’s, Inc. Reports Fourth Quarter and Fiscal Year Results
Dillard’s Chief Executive Officer
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 compared to$289.2 million -
Earnings per share of
$15.44 compared to$16.89 - Retail gross margin of 37.7% of sales compared to 38.7% 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 (approximately 52,000 shares) - Ending inventory decreased 2% year over year
Fourth Quarter Results
Dillard’s reported net income for the 14 weeks ended
-
a federal income tax benefit of
$21.1 million ($1.30 per share) due to a deduction related to that portion of the special dividend of$20.00 per share that was paid to theDillard's, Inc. Investment and Employee Stock Ownership Plan during the quarter -
a net
$7.3 million ($0.45 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
Included in net income for the 13 weeks ended
-
a federal income tax benefit of
$16.3 million ($0.95 per share) due to a deduction related to that portion of the special dividend of$15.00 per share that was paid to theDillard's, Inc. Investment and Employee Stock Ownership Plan during the quarter -
a net
$13.7 million ($0.80 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
Sales – Fourth Quarter
Net sales for the 14 weeks ended
Total retail sales (which excludes CDI) for the 14 weeks ended
Gross Margin – Fourth Quarter
Consolidated gross margin for the 14 weeks ended
Retail gross margin (which excludes CDI) for the 14 weeks ended
Inventory decreased 2% at
Selling, General & Administrative Expenses – Fourth Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 14 weeks ended
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 compared to$891.6 million -
Earnings per share of
$44.73 compared to$50.81 - Retail gross margin of 41.8% of sales compared to 43.0% 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 (approximately 917,700 shares)
Fiscal Year Results
Dillard’s reported net income for the 53 weeks ended
-
a federal income tax benefit of
$21.1 million ($1.28 per share) due to a deduction related to that portion of the special dividend of$20.00 per share that was paid to theDillard's, Inc. Investment and Employee Stock Ownership Plan during the year -
a net
$9.8 million ($0.59 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
Included in net income for the 52 weeks ended
-
a federal income tax benefit of
$16.3 million ($0.93 per share) due to a deduction related to that portion of the special dividend of$15.00 per share that was paid to theDillard's, Inc. Investment and Employee Stock Ownership Plan during the year -
a net
$13.7 million ($0.78 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
Sales – Fiscal Year
Net sales for the 53 weeks ended
Total retail sales for the 53 weeks ended
Gross Margin – Fiscal Year
Consolidated gross margin for the 53 weeks ended
Selling, General & Administrative Expenses – Fiscal Year
Operating expenses for the 53 weeks ended
Share Repurchase
During the 14 weeks ended
During the 53 weeks ended
Total shares outstanding (Class A and Class B Common Stock) at
Store Information
The Company will open its
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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% 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 |
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34.5 |
|
1.6 |
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35.8 |
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1.7 |
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122.3 |
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1.8 |
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125.1 |
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1.8 |
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2,158.9 |
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101.6 |
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2,162.5 |
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101.7 |
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6,874.4 |
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101.8 |
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6,996.2 |
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101.8 |
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Cost of sales |
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1,346.5 |
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63.4 |
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1,325.3 |
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62.3 |
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4,031.1 |
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59.7 |
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3,983.6 |
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58.0 |
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Selling, general and administrative expenses |
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476.7 |
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22.4 |
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458.4 |
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21.6 |
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1,717.4 |
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25.4 |
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1,674.3 |
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24.4 |
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Depreciation and amortization |
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44.3 |
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2.1 |
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47.6 |
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2.2 |
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179.6 |
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2.7 |
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188.5 |
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2.7 |
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Rentals |
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7.3 |
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0.3 |
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7.5 |
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0.4 |
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21.6 |
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0.3 |
|
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23.2 |
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0.3 |
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Interest and debt (income) expense, net |
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(3.1 |
) |
(0.1 |
) |
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3.4 |
|
0.2 |
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(4.6 |
) |
(0.1 |
) |
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30.5 |
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0.4 |
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Other expense |
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4.7 |
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0.2 |
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1.9 |
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0.1 |
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18.8 |
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0.3 |
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7.7 |
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0.1 |
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Gain on disposal of assets |
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— |
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0.0 |
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13.8 |
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0.6 |
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6.1 |
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0.1 |
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21.0 |
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0.3 |
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Income before income taxes |
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282.5 |
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13.3 |
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332.2 |
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15.6 |
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916.6 |
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13.6 |
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1,109.4 |
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16.1 |
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Income taxes |
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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 |
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10.9 |
% |
$ |
891.6 |
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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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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 |
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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 |
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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 |
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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 |
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321.4 |
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321.4 |
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Operating lease liabilities |
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31.7 |
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24.2 |
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Other liabilities |
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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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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 |
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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 |
) |
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Gain on disposal of assets |
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(6.1 |
) |
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(21.0 |
) |
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Gain from insurance proceeds |
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— |
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(0.2 |
) |
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Accrued interest on short-term investments |
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(5.7 |
) |
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(3.2 |
) |
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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 |
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(40.0 |
) |
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Increase in other current assets |
|
(7.8 |
) |
|
(5.4 |
) |
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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 |
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(132.9 |
) |
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(120.1 |
) |
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Proceeds from disposal of assets |
|
6.3 |
|
|
25.1 |
|
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Proceeds from insurance |
|
4.5 |
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4.9 |
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Purchase of short-term investments |
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(295.4 |
) |
|
(245.7 |
) |
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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 |
|
— |
|
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(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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Non-cash transactions: |
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Accrued capital expenditures |
$ |
6.2 |
|
$ |
5.2 |
|
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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 |
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In Millions |
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|
2024 |
|
2023 |
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|
Estimated |
|
Actual |
|||||
Depreciation and amortization |
$ |
185 |
|
$ |
180 |
|
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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
View source version on businesswire.com: https://www.businesswire.com/news/home/20240226549393/en/
Dillard’s, Inc.
501-376-5965
julie.guymon@dillards.com
Source: Dillard’s, Inc.