LITTLE ROCK, Ark., Feb. 25, 2025 (GLOBE NEWSWIRE) -- Dillard's, Inc. (NYSE: DDS) (the "Company” or "Dillard's”) announced operating results for the 13 and 52 weeks ended February 1, 2025 (fiscal 2024). The Company follows the 4-5-4 retail reporting calendar, which included a 53rd week in the 2023 fiscal year. Comparisons are made based on the 13 and 52 weeks ended February 1, 2025 and February 3, 2024 where appropriate and noted. 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, "With sales down 1%, we worked on controlling expenses but lost some steam in gross margin.”
Highlights of the Fourth Quarter (compared to the prior year fourth quarter):
- Total retail sales decreased 1% for the 13-week to 13-week period
- Comparable store sales decreased 1% for the 13-week to 13-week period
- Net income of $214.4 million compared to $250.5 million
- Earnings per share of $13.48 compared to $15.44
- Retail gross margin of 36.1% of sales compared to 37.7% of sales
- Operating expenses for 13 weeks were $452.0 million (22.4% of 13-week sales) compared to $476.7 million for 14 weeks (22.4% of 14-week sales)
- Ending inventory increased 7%
Dillard's reported net income for the 13 weeks ended February 1, 2025 of $214.4 million, or $13.48 per share, compared to $250.5 million, or $15.44 per share, for the 14 weeks ended February 3, 2024. Included in net income for the 13 weeks ended February 1, 2025 are federal and state income tax benefits of $30.8 million ($1.94 per share) due to a deduction related to that portion of the special dividend of $25.00 per share that was paid to the Dillard's, Inc. Investment and Employee Stock Ownership Plan during the quarter.
Included in net income for the 14 weeks ended February 3, 2024 are the following tax-related benefits:
- federal and state income tax benefits of $26.1 million ($1.61 per share) due to a deduction related to that portion of the special dividend of $20.00 per share that was paid to the Dillard'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
Net sales for the 13 weeks ended February 1, 2025 and 14 weeks ended February 3, 2024 were $2.017 billion and $2.124 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 February 1, 2025 and 14 weeks ended February 3, 2024 were $1.943 billion and $2.057 billion, respectively. Total retail sales decreased 1% for the 13-week period ended February 1, 2025 compared to the 13-week period ended February 3, 2024. Sales in comparable stores for that same period decreased 1%. Stronger performing categories were home and furniture and cosmetics. Weaker performing categories were men's apparel and accessories and shoes.
Gross Margin - Fourth Quarter
Consolidated gross margin for the 13 weeks ended February 1, 2025 was 34.9% of sales compared to 36.6% of sales for the 14 weeks ended February 3, 2024.
Retail gross margin for the 13 weeks ended February 1, 2025 was 36.1% of sales compared to 37.7% of sales for the 14 weeks ended February 3, 2024. Compared to the prior year fourth quarter, retail gross margin was flat in juniors' and children's apparel and ladies' accessories and lingerie. Gross margin decreased slightly in shoes, cosmetics and men's apparel and accessories. Gross margin decreased significantly in home and furniture and ladies' apparel.
Inventory increased 7% at February 1, 2025 compared to February 3, 2024.
Selling, General & Administrative Expenses - Fourth Quarter
Consolidated selling, general and administrative expenses ("operating expenses”) for the 13 weeks ended February 1, 2025 were $452.0 (22.4% of sales) and $476.7 million (22.4% of sales) for the 14 weeks ended February 3, 2024. The decrease in operating expenses of approximately $24.7 million is primarily due to the 53rd week of operations in the fourth quarter of fiscal 2023. The Company continued to work on controlling expenses during the quarter, and these efforts will continue.
Highlights of the Fiscal Year (compared to the prior fiscal year):
- Total retail sales decreased 2% for the 52-week to 52-week period
- Comparable store sales decreased 3% for the 52-week to 52-week period
- Net income of $593.5 million compared to $738.8 million
- Earnings per share of $36.82 compared to $44.73
- Retail gross margin of 41.0% of sales compared to 41.8% of sales
- Operating expenses were $1,731.2 million for 52 weeks (26.7% of 52-week sales) compared to $1,717.4 million for 53 weeks (25.4% of 53-week sales)
Dillard's reported net income for the 52 weeks ended February 1, 2025 of $593.5 million, or $36.82 per share, compared to $738.8 million, or $44.73 per share, for the 53 weeks ended February 3, 2024. Included in net income for the 52 weeks ended February 1, 2025 are federal and state income tax benefits of $30.8 million ($1.91 per share) due to a deduction related to that portion of the special dividend of $25.00 per share that was paid to the Dillard's, Inc. Investment and Employee Stock Ownership Plan during the year.
Included in net income for the 53 weeks ended February 3, 2024 is a pretax gain of $6.1 million ($4.7 million after tax or $0.28 per share) primarily related to the sale of two store properties. Also Included in net income for the 53 weeks ended February 3, 2024 are the following tax-related benefits:
- federal and state income tax benefits of $26.1 million ($1.58 per share) due to a deduction related to that portion of the special dividend of $20.00 per share that was paid to the Dillard'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
Net sales for the 52 weeks ended February 1, 2025 and 53 weeks ended February 3, 2024 were $6.483 billion and $6.752 billion, respectively.
Total retail sales for the 52 weeks ended February 1, 2025 and 53 weeks ended February 3, 2024 were $6.219 billion and $6.480 billion, respectively. Total retail sales decreased 2% for the 52-week period ended February 1, 2025 compared to the 52-week period ended February 3, 2024. Sales in comparable stores for that same period decreased 3%.
Gross Margin - Fiscal Year
Consolidated gross margin for the 52 weeks ended February 1, 2025 was 39.5% of sales compared to 40.3% of sales for the 53 weeks ended February 3, 2024.
Retail gross margin (which excludes CDI) for the 52 weeks ended February 1, 2025 was 41.0% of sales compared to 41.8% of sales for the 53 weeks ended February 3, 2024.
Selling, General & Administrative Expenses - Fiscal Year
Operating expenses for the 52 weeks ended February 1, 2025 were $1,731.2 million (26.7% of sales) compared to $1,717.4 million (25.4% of sales) for the 53 weeks ended February 3, 2024. The increase in operating expenses is primarily due to increased payroll and payroll-related expenses, largely occurring in the first half of the year.
Share Repurchase
During the 13 weeks ended February 1, 2025 the Company purchased $14.0 million (approximately 36,000 shares) of Class A Common Stock at an average price of $391.04 per share. As of February 1, 2025, authorization of $273.0 million remained under the May 2023 program.
Total shares outstanding (Class A and Class B Common Stock) at February 1, 2025 and February 3, 2024 were 15.9 million and 16.2 million, respectively.
Other Information
The Company operates 272 Dillard's stores, including 28 clearance centers, spanning 30 states (totaling 46.3 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 | 14 Weeks Ended | 52 Weeks Ended | 53 Weeks Ended | ||||||||||||||||||||||||||
| February 1, 2025 | February 3, 2024 | February 1, 2025 | February 3, 2024 | ||||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||
| Net | Net | Net | Net | ||||||||||||||||||||||||||
| Amount | Sales | Amount | Sales | Amount | Sales | Amount | Sales | ||||||||||||||||||||||
| Net sales | $ | 2,016.6 | 100.0 | % | $ | 2,124.4 | 100.0 | % | $ | 6,482.6 | 100.0 | % | $ | 6,752.1 | 100.0 | % | |||||||||||||
| Service charges and other income | 35.0 | 1.7 | 34.5 | 1.6 | 107.6 | 1.7 | 122.3 | 1.8 | |||||||||||||||||||||
| 2,051.6 | 101.7 | 2,158.9 | 101.6 | 6,590.2 | 101.7 | 6,874.4 | 101.8 | ||||||||||||||||||||||
| Cost of sales | 1,312.1 | 65.1 | 1,346.5 | 63.4 | 3,919.5 | 60.5 | 4,031.1 | 59.7 | |||||||||||||||||||||
| Selling, general and administrative expenses | 452.0 | 22.4 | 476.7 | 22.4 | 1,731.2 | 26.7 | 1,717.4 | 25.4 | |||||||||||||||||||||
| Depreciation and amortization | 41.3 | 2.0 | 44.3 | 2.1 | 177.9 | 2.7 | 179.6 | 2.7 | |||||||||||||||||||||
| Rentals | 6.5 | 0.3 | 7.3 | 0.3 | 21.4 | 0.3 | 21.6 | 0.3 | |||||||||||||||||||||
| Interest and debt (income) expense, net | (1.8 | ) | (0.1 | ) | (3.1 | ) | (0.1 | ) | (13.7 | ) | (0.2 | ) | (4.6 | ) | (0.1 | ) | |||||||||||||
| Other expense | 6.2 | 0.3 | 4.7 | 0.2 | 24.7 | 0.4 | 18.8 | 0.3 | |||||||||||||||||||||
| Gain on disposal of assets | - | 0.0 | - | 0.0 | 0.5 | 0.0 | 6.1 | 0.1 | |||||||||||||||||||||
| Income before income taxes | 235.3 | 11.7 | 282.5 | 13.3 | 729.7 | 11.3 | 916.6 | 13.6 | |||||||||||||||||||||
| Income taxes | 20.9 | 32.0 | 136.2 | 177.8 | |||||||||||||||||||||||||
| Net income | $ | 214.4 | 10.6 | % | $ | 250.5 | 11.8 | % | $ | 593.5 | 9.2 | % | $ | 738.8 | 10.9 | % | |||||||||||||
| Basic and diluted earnings per share | $ | 13.48 | $ | 15.44 | $ | 36.82 | $ | 44.73 | |||||||||||||||||||||
| Basic and diluted weighted average shares outstanding | 15.9 | 16.2 | 16.1 | 16.5 | |||||||||||||||||||||||||
| Dillard's, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) | ||||||
| February 1, | February 3, | |||||
| 2025 | 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 717.9 | $ | 808.3 | ||
| Accounts receivable | 55.7 | 60.6 | ||||
| Short-term investments | 325.7 | 148.0 | ||||
| Merchandise inventories | 1,172.0 | 1,094.0 | ||||
| Other current assets | 96.8 | 97.3 | ||||
| Total current assets | 2,368.1 | 2,208.2 | ||||
| Property and equipment, net | 1,002.2 | 1,074.3 | ||||
| Operating lease assets | 33.6 | 42.7 | ||||
| Deferred income taxes | 69.1 | ()[\]\\.,;:\s@\"]+)*)|(\".+\"))@((\[[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\.[0-9]{1,3}\])|(([a-zA-Z\-0-9]+\.)+[a-zA-Z]{2,}))$/;return b.test(a)}$(document).ready(function(){if(performance.navigation.type==2){location.reload(true)}$("iframe[data-lazy-src]").each(function(b){$(this).attr("src",$(this).attr("data-lazy-src"))});if($(".owl-article-body-images").length){$(".owl-article-body-images").owlCarousel({items:1,loop:true,center:false,dots:false,autoPlay:true,mouseDrag:false,touchDrag:false,pullDrag:false,nav:true})}var a=$("#display_full_text").val();if(a==0){$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:$("#cms_article_id").val()},dataType:"json",success:function(b){},error:function(b,d,c){}})}$(".read-full-article").on("click",function(d){d.preventDefault();var b=$(this).attr("data-cmsArticleId");var c=$(this).attr("data-productId");var f=$(this).attr("data-href");dataLayer.push({event:"paywall_click",paywall_name:"the_manila_times_premium",paywall_id:"paywall_article_"+b});$.ajax({url:"/ajax/set-article-cookie",type:"POST",data:{cmsArticleId:b,productId:c},dataType:"json",success:function(e){window.location.href=$("#BASE_URL").val()+f},error:function(e,h,g){}})});$(".article-embedded-newsletter-form .close-btn").on("click",function(){$(".article-embedded-newsletter-form").fadeOut(1000)})});$(document).on("click",".article-embedded-newsletter-form .newsletter-button",function(){var b=$(".article-embedded-newsletter-form .newsletter_email").val();var d=$("#ga_user_id").val();var c=$("#ga_user_yob").val();var a=$("#ga_user_gender").val();var e=$("#ga_user_country").val();if(validateEmail(b)){$.ajax({url:"/ajax/sendynewsletter",type:"POST",data:{email:b},success:function(f){$(".article-embedded-newsletter-form .nf-message").html(f);$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000);dataLayer.push({event:"newsletter_sub",user_id:d,product_name:"newsletter",gender:a,yob:c,country:e})},error:function(f,h,g){}})}else{$(".article-embedded-newsletter-form .nf-message").html("Please enter a valid email address.");$(".article-embedded-newsletter-form .nf-message").addClass("show");setTimeout(function(){$(".article-embedded-newsletter-form .nf-message").removeClass("show");$(".article-embedded-newsletter-form .nf-message").html("")},6000)}});$(document).on("click",".article-embedded-newsletter-form .nf-message",function(){$(this).removeClass("show");$(this).html("")});
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