Dillard’s, Inc. Reports Fourth Quarter and Fiscal Year Results
Rhea-AI Summary
Dillard's (NYSE: DDS) released its fourth quarter and fiscal year 2024 results, reporting a decrease in performance compared to the previous year. For Q4, the company posted net income of $214.4 million ($13.48 per share), down from $250.5 million ($15.44 per share) in the prior year. Total retail sales decreased 1% with comparable store sales also down 1%.
Retail gross margin declined to 36.1% from 37.7% in the previous year's Q4. Inventory increased by 7%. For the full fiscal year 2024, Dillard's reported net income of $593.5 million ($36.82 per share), compared to $738.8 million ($44.73 per share) in fiscal 2023. Annual retail sales decreased 2% with comparable store sales down 3%.
CEO William T. Dillard, II noted: "With sales down 1%, we worked on controlling expenses but lost some steam in gross margin." During Q4, the company repurchased approximately 36,000 shares for $14 million, with $273 million remaining in its buyback authorization. Dillard's currently operates 272 stores across 30 states.
Positive
- Share repurchase program continues with $14 million (36,000 shares) bought in Q4
- $273 million remains in the May 2023 buyback authorization
- Operating expenses remained controlled at 22.4% of sales in Q4
- Home and furniture and cosmetics were stronger performing categories
Negative
- Q4 net income decreased to $214.4 million from $250.5 million year-over-year
- Q4 EPS declined to $13.48 from $15.44 year-over-year
- Retail gross margin decreased to 36.1% from 37.7% in Q4
- Inventory increased 7% while sales declined
- Full-year net income fell to $593.5 million from $738.8 million
- Annual comparable store sales decreased 3%
- Men's apparel, accessories and shoes were weaker performing categories
News Market Reaction 1 Alert
On the day this news was published, DDS declined 5.13%, reflecting a notable negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
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 to37.7% 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%
Fourth Quarter Results
Dillard’s reported net income for the 13 weeks ended February 1, 2025 of
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
Sales – Fourth Quarter
Net sales for the 13 weeks ended February 1, 2025 and 14 weeks ended February 3, 2024 were
Total retail sales (which excludes CDI) for the 13 weeks ended February 1, 2025 and 14 weeks ended February 3, 2024 were
Gross Margin – Fourth Quarter
Consolidated gross margin for the 13 weeks ended February 1, 2025 was
Retail gross margin for the 13 weeks ended February 1, 2025 was
Inventory increased
Selling, General & Administrative Expenses – Fourth Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended February 1, 2025 were
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 to41.8% 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)
Fiscal Year Results
Dillard’s reported net income for the 52 weeks ended February 1, 2025 of
Included in net income for the 53 weeks ended February 3, 2024 is a pretax gain of
- 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
Sales – Fiscal Year
Net sales for the 52 weeks ended February 1, 2025 and 53 weeks ended February 3, 2024 were
Total retail sales for the 52 weeks ended February 1, 2025 and 53 weeks ended February 3, 2024 were
Gross Margin – Fiscal Year
Consolidated gross margin for the 52 weeks ended February 1, 2025 was
Retail gross margin (which excludes CDI) for the 52 weeks ended February 1, 2025 was
Selling, General & Administrative Expenses – Fiscal Year
Operating expenses for the 52 weeks ended February 1, 2025 were
Share Repurchase
During the 13 weeks ended February 1, 2025 the Company purchased
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 | 63.9 | ||||
| Other assets | 58.1 | 59.8 | ||||
| Total assets | $ | 3,531.1 | $ | 3,448.9 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable and accrued expenses | $ | 795.0 | $ | 782.5 | ||
| Current portion of operating lease liabilities | 11.4 | 11.3 | ||||
| Federal and state income taxes | 28.5 | 34.0 | ||||
| Total current liabilities | 834.9 | 827.8 | ||||
| Long-term debt | 321.6 | 321.4 | ||||
| Operating lease liabilities | 22.3 | 31.7 | ||||
| Other liabilities | 356.1 | 370.9 | ||||
| Subordinated debentures | 200.0 | 200.0 | ||||
| Stockholders’ equity | 1,796.2 | 1,697.1 | ||||
| Total liabilities and stockholders’ equity | $ | 3,531.1 | $ | 3,448.9 | ||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) | ||||||||
| 52 Weeks Ended | 53 Weeks Ended | |||||||
| February 1, | February 3, | |||||||
| 2025 | 2024 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 593.5 | $ | 738.8 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and other deferred costs | 179.5 | 181.2 | ||||||
| Deferred income taxes | (9.0 | ) | (17.7 | ) | ||||
| Gain on disposal of assets | (0.5 | ) | (6.1 | ) | ||||
| Accrued interest on short-term investments | (11.8 | ) | (5.7 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Decrease (increase) in accounts receivable | 4.8 | (3.6 | ) | |||||
| (Increase) decrease in merchandise inventories | (78.0 | ) | 26.2 | |||||
| Decrease (increase) in other current assets | 2.3 | (7.8 | ) | |||||
| Increase in other assets | (0.8 | ) | (4.6 | ) | ||||
| Increase (decrease) in trade accounts payable and accrued expenses and other liabilities | 36.5 | (22.5 | ) | |||||
| (Decrease) increase in income taxes | (2.4 | ) | 5.4 | |||||
| Net cash provided by operating activities | 714.1 | 883.6 | ||||||
| Investing activities: | ||||||||
| Purchase of property and equipment and capitalized software | (104.6 | ) | (132.9 | ) | ||||
| Proceeds from disposal of assets | 0.7 | 6.3 | ||||||
| Proceeds from insurance | — | 4.5 | ||||||
| Purchase of short-term investments | (696.7 | ) | (295.4 | ) | ||||
| Proceeds from maturities of short-term investments | 530.9 | 301.9 | ||||||
| Net cash used in investing activities | (269.7 | ) | (115.6 | ) | ||||
| Financing activities: | ||||||||
| Cash dividends paid | (413.8 | ) | (338.6 | ) | ||||
| Purchase of treasury stock | (121.0 | ) | (281.4 | ) | ||||
| Net cash used in financing activities | (534.8 | ) | (620.0 | ) | ||||
| (Decrease) increase in cash and cash equivalents and restricted cash | (90.4 | ) | 148.0 | |||||
| Cash and cash equivalents and restricted cash, beginning of period | 808.3 | 660.3 | ||||||
| Cash and cash equivalents, end of period | $ | 717.9 | $ | 808.3 | ||||
| Non-cash transactions: | ||||||||
| Accrued capital expenditures | $ | 6.8 | $ | 6.2 | ||||
| Accrued purchase of treasury stock and excise taxes | 1.2 | 2.8 | ||||||
| Stock awards | 4.2 | 4.5 | ||||||
| Lease assets obtained in exchange for new operating lease liabilities | 2.9 | 20.5 | ||||||
Estimates for 2025
The Company is providing the following estimates for certain financial statement items for the 52-week period ending January 31, 2026 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”
| In Millions | ||||||||
| 2025 | 2024 | |||||||
| Estimated | Actual | |||||||
| Depreciation and amortization | $ | 180 | $ | 178 | ||||
| Rentals | 20 | 21 | ||||||
| Interest and debt (income) expense, net | (8 | ) | (14 | ) | ||||
| Capital expenditures | 120 | 105 | ||||||
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 January 31, 2026 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, higher interest rates, a potential U.S. Federal government shutdown, economic recession 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 (including the Inflation Reduction Act of 2022); changes in legislation and governmental regulations affecting trade restrictions, including tariffs, and such matters as the cost of employee benefits or credit card income, such as the Consumer Financial Protection Bureau’s recent amendment to Regulation Z to limit the dollar amounts credit card companies can charge for late fees; 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 SOFR and other base borrowing rates; potential disruption from terrorist activity and the effect on ongoing consumer confidence; epidemic, pandemic or public health issues and their effects on public health, our supply chain, the health and well-being of our employees and customers and the retail industry in general; potential disruption of international trade and supply chain efficiencies; global conflicts (including the ongoing conflicts in the Middle East and Ukraine) and the possible impact on consumer spending patterns and other economic and demographic changes of similar or dissimilar nature, and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, particularly those set forth under the caption “Item 1A, Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended February 3, 2024.
CONTACT:
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
julie.guymon@dillards.com
FAQ
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How much did Dillard's (DDS) comparable store sales decrease in fiscal 2024?
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How much inventory growth did Dillard's (DDS) report for February 2025?
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