LITTLE ROCK, Ark., Nov. 14, 2024 (GLOBE NEWSWIRE) -- Dillard's, Inc. (NYSE: DDS) (the "Company” or "Dillard's”) announced operating results for the 13 and 39 weeks ended November 2, 2024. This release contains certain forward-looking statements. Please refer to the Company's cautionary statements included below under "Forward-Looking Information.”
Dillard's Chief Executive Officer William T. Dillard, II stated, "While retail sales declined 4%, we focused on gross margin, reporting a respectable 44.5% of sales, while working on expense control. We reported cash and short-term investments of over $1.1 billion after repurchasing $107 million in stock. We are looking forward to welcoming our customers and serving them this holiday season.”
Highlights of the Third Quarter (compared to the prior year third quarter):
- Total retail sales decreased 4%
- Comparable store sales decreased 4%
- Net income of $124.6 million compared to $155.3 million
- Earnings per share of $7.73 compared to $9.49
- Retail gross margin of 44.5% of sales compared to 45.3% of sales
- Operating expenses were $418.9 million (29.4% of sales) compared to $421.8 million (28.6% of sales)
- Ending inventory increased 3%
Dillard's reported net income for the 13 weeks ended November 2, 2024 of $124.6 million, or $7.73 per share, compared to $155.3 million, or $9.49 per share, for the 13 weeks ended October 28, 2023. Included in net income for the 13 weeks ended October 28, 2023 is a pretax gain of $4.0 million ($3.1 million after tax or $0.19 per share) primarily related to the sale of a store property.
Sales - Third Quarter
Net sales for the 13 weeks ended November 2, 2024 and October 28, 2023 were $1.427 billion and $1.476 billion, respectively. Net sales includes the operations of the Company's construction business, CDI Contractors, LLC ("CDI”).
Total retail sales (which excludes CDI) for the 13 weeks ended November 2, 2024 and October 28, 2023 were $1.356 billion and $1.409 billion, respectively. Total retail sales decreased 4% for the 13-week period ended November 2, 2024 compared to the 13-week period ended October 28, 2023. Sales in comparable stores for that same period decreased 4%. Cosmetics was the strongest performing merchandise category, with the weakest performances noted in juniors' and children's apparel and men's apparel and accessories.
Gross Margin - Third Quarter
Consolidated gross margin for the 13 weeks ended November 2, 2024 was 42.6% of sales compared to 43.5% of sales for the 13 weeks ended October 28, 2023.
Retail gross margin for the 13 weeks ended November 2, 2024 was 44.5% of sales compared to 45.3% of sales for the 13 weeks ended October 28, 2023. Compared to the prior year third quarter, retail gross margin increased slightly in ladies' accessories and lingerie and was flat in men's apparel and accessories and cosmetics. Gross margin decreased slightly in shoes and juniors' and children's apparel and decreased moderately in home and furniture and ladies' apparel.
Inventory increased 3% at November 2, 2024 compared to October 28, 2023. The Company notes a shorter selling period between Thanksgiving and Christmas this year.
Selling, General & Administrative Expenses - Third Quarter
Consolidated selling, general and administrative expenses ("operating expenses”) for the 13 weeks ended November 2, 2024 decreased $2.9 million to $418.9 million (29.4% of sales) compared to $421.8 million (28.6% of sales) for the 13 weeks ended October 28, 2023. Compared to the prior year third quarter, payroll expense was flat while insurance benefit expense increased. The Company worked to control expenses during the quarter, and these efforts will continue.
Highlights of the 39 Weeks (compared to the prior year 39 weeks):
- Total retail sales decreased 3%
- Comparable store sales decreased 4%
- Net income of $379.1 million compared to $488.3 million
- Earnings per share of $23.42 compared to $29.38
- Retail gross margin of 43.3% of sales compared to 43.7% of sales
- Operating expenses were $1,279.2 million (28.6% of sales) compared to $1,240.7 million (26.8% of sales)
Dillard's reported net income for the 39 weeks ended November 2, 2024 of $379.1 million, or $23.42 per share, compared to $488.3 million, or $29.38 per share, for the 39 weeks ended October 28, 2023. Included in net income for the 39 weeks ended October 28, 2023 is a pretax gain of $6.0 million ($4.6 million after tax or $0.28 per share) primarily related to the sale of two store properties.
Sales - 39 Weeks
Net sales for the 39 weeks ended November 2, 2024 and October 28, 2023 were $4.466 billion and $4.628 billion, respectively.
Total retail sales for the 39 weeks ended November 2, 2024 and October 28, 2023 were $4.275 billion and $4.423 billion, respectively. Total retail sales decreased 3% for the 39-week period ended November 2, 2024 compared to the 39-week period ended October 28, 2023. Sales in comparable stores for that same period decreased 4%.
Gross Margin - 39 Weeks
Consolidated gross margin for the 39 weeks ended November 2, 2024 was 41.6% of sales compared to 42.0% of sales for the 39 weeks ended October 28, 2023.
Retail gross margin (which excludes CDI) for the 39 weeks ended November 2, 2024 was 43.3% of sales compared to 43.7% of sales for the 39 weeks ended October 28, 2023.
Selling, General & Administrative Expenses - 39 Weeks
Operating expenses for the 39 weeks ended November 2, 2024 were $1,279.2 million (28.6% of sales) compared to $1,240.7 million (26.8% of sales) for the 39 weeks ended October 28, 2023. The increase in operating expenses is primarily due to increased payroll and payroll-related expenses.
Share Repurchase
During the 13 weeks ended November 2, 2024 the Company purchased $107.0 million (approximately 294,000 shares) of Class A Common Stock at an average price of $364.43 per share. As of November 2, 2024, authorization of $287.0 million remained under the May 2023 program.
Total shares outstanding (Class A and Class B Common Stock) at November 2, 2024 and October 28, 2023 were 15.9 million and 16.3 million, respectively.
Other Information
The Company operates 273 Dillard's stores, including 28 clearance centers, spanning 30 states (totaling 46.4 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) | |||||||||||||||||||||||||||||||
| 13 Weeks Ended | 39 Weeks Ended | ||||||||||||||||||||||||||||||
| November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | ||||||||||||||||||||||||||||
| Amount | % of Net Sales | Amount | % of Net Sales | Amount | % of Net Sales | Amount | % of Net Sales | ||||||||||||||||||||||||
| Net sales | $ | 1,427.0 | 100.0 | % | $ | 1,476.4 | 100.0 | % | $ | 4,466.0 | 100.0 | % | $ | 4,627.7 | 100.0 | % | |||||||||||||||
| Service charges and other income | 24.2 | 1.7 | 27.8 | 1.9 | 72.6 | 1.6 | 87.9 | 1.9 | |||||||||||||||||||||||
| 1,451.2 | 101.7 | 1,504.2 | 101.9 | 4,538.6 | 101.6 | 4,715.6 | 101.9 | ||||||||||||||||||||||||
| Cost of sales | 819.3 | 57.4 | 834.5 | 56.5 | 2,607.5 | 58.4 | 2,684.6 | 58.0 | |||||||||||||||||||||||
| Selling, general and administrative expenses | 418.9 | 29.4 | 421.8 | 28.6 | 1,279.2 | 28.6 | 1,240.7 | 26.8 | |||||||||||||||||||||||
| Depreciation and amortization | 44.1 | 3.1 | 44.7 | 3.0 | 136.5 | 3.1 | 135.3 | 2.9 | |||||||||||||||||||||||
| Rentals | 4.9 | 0.3 | 4.9 | 0.3 | 14.9 | 0.3 | 14.3 | 0.3 | |||||||||||||||||||||||
| Interest and debt (income) expense, net | (4.5 | ) | (0.3 | ) | (1.8 | ) | (0.1 | ) | (11.9 | ) | (0.3 | ) | (1.5 | ) | 0.0 | ||||||||||||||||
| Other expense | 6.2 | 0.4 | 4.7 | 0.3 | 18.5 | 0.4 | 14.1 | 0.3 | |||||||||||||||||||||||
| Gain on disposal of assets | 0.2 | 0.0 | 4.0 | 0.3 | 0.5 | 0.0 | 6.0 | 0.1 | |||||||||||||||||||||||
| Income before income taxes | 162.5 | 11.4 | 199.4 | 13.5 | 494.4 | 11.1 | 634.1 | 13.7 | |||||||||||||||||||||||
| Income taxes | 37.9 | 44.1 | 115.3 | 145.8 | |||||||||||||||||||||||||||
| Net income | $ | 124.6 | 8.7 | % | $ | 155.3 | 10.5 | % | $ | 379.1 | 8.5 | % | $ | 488.3 | 10.6 | % | |||||||||||||||
| Basic and diluted earnings per share | $ | 7.73 | $ | 9.49 | $ | 23.42 | $ | 29.38 | |||||||||||||||||||||||
| Basic and diluted weighted average shares outstanding | 16.1 | 16.4 | 16.2 | 16.6 | |||||||||||||||||||||||||||
| Dillard's, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) | ||||||||
| November 2, 2024 | October 28, 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 980.4 | $ | 842.0 | ||||
| Accounts receivable | 61.7 |
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