Dillard’s, Inc. Reports Third Quarter and Year-to-Date Results
Rhea-AI Summary
Dillard's, Inc. (NYSE: DDS) reported its operating results for the third quarter and year-to-date ending November 2, 2024.
The company highlighted a net income of $45.5 million for the third quarter, down from $56.0 million in the same period last year. Year-to-date net income reached $157.2 million, compared to $171.5 million in 2023. Total merchandise sales decreased slightly to $1.32 billion, compared to $1.34 billion last year.
Additionally, Dillard's saw a gross margin of 37.5%, down from 38.2% in the previous year. Operating expenses increased to $380.3 million, up from $368.2 million last year, primarily due to higher labor costs.
The company remains focused on inventory management and cost control, aiming to navigate the challenging retail environment effectively.
Positive
- Year-to-date net income reached $157.2 million.
- Total merchandise sales were $1.32 billion.
Negative
- Third-quarter net income decreased to $45.5 million from $56.0 million.
- Gross margin declined to 37.5% from 38.2%.
- Operating expenses increased to $380.3 million, up from $368.2 million.
News Market Reaction – DDS
On the day this news was published, DDS gained 11.47%, reflecting a significant positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
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
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 to45.3% 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%
Third Quarter Results
Dillard’s reported net income for the 13 weeks ended November 2, 2024 of
Sales – Third Quarter
Net sales for the 13 weeks ended November 2, 2024 and October 28, 2023 were
Total retail sales (which excludes CDI) for the 13 weeks ended November 2, 2024 and October 28, 2023 were
Gross Margin – Third Quarter
Consolidated gross margin for the 13 weeks ended November 2, 2024 was
Retail gross margin for the 13 weeks ended November 2, 2024 was
Inventory increased
Selling, General & Administrative Expenses – Third Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended November 2, 2024 decreased
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 to43.7% of sales - Operating expenses were
$1,279.2 million (28.6% of sales) compared to$1,240.7 million (26.8% of sales)
39-Week Results
Dillard’s reported net income for the 39 weeks ended November 2, 2024 of
Sales – 39 Weeks
Net sales for the 39 weeks ended November 2, 2024 and October 28, 2023 were
Total retail sales for the 39 weeks ended November 2, 2024 and October 28, 2023 were
Gross Margin – 39 Weeks
Consolidated gross margin for the 39 weeks ended November 2, 2024 was
Retail gross margin (which excludes CDI) for the 39 weeks ended November 2, 2024 was
Selling, General & Administrative Expenses – 39 Weeks
Operating expenses for the 39 weeks ended November 2, 2024 were
Share Repurchase
During the 13 weeks ended November 2, 2024 the Company purchased
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 | 57.4 | ||||||
| Short-term investments | 128.9 | 51.3 | ||||||
| Merchandise inventories | 1,682.2 | 1,629.2 | ||||||
| Other current assets | 89.1 | 85.7 | ||||||
| Total current assets | 2,942.3 | 2,665.6 | ||||||
| Property and equipment, net | 1,030.7 | 1,094.6 | ||||||
| Operating lease assets | 35.9 | 34.4 | ||||||
| Deferred income taxes | 64.8 | 47.6 | ||||||
| Other assets | 59.4 | 55.7 | ||||||
| Total assets | $ | 4,133.1 | $ | 3,897.9 | ||||
| Liabilities and stockholders’ equity | ||||||||
| Current liabilities: | ||||||||
| Trade accounts payable and accrued expenses | $ | 1,215.0 | $ | 1,181.2 | ||||
| Current portion of operating lease liabilities | 11.7 | 8.5 | ||||||
| Federal and state income taxes | 10.0 | 12.5 | ||||||
| Total current liabilities | 1,236.7 | 1,202.2 | ||||||
| Long-term debt | 321.6 | 321.4 | ||||||
| Operating lease liabilities | 24.3 | 26.2 | ||||||
| Other liabilities | 387.1 | 334.5 | ||||||
| Subordinated debentures | 200.0 | 200.0 | ||||||
| Stockholders’ equity | 1,963.4 | 1,813.6 | ||||||
| Total liabilities and stockholders’ equity | $ | 4,133.1 | $ | 3,897.9 | ||||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) | ||||||||
| 39 Weeks Ended | ||||||||
| November 2, 2024 | October 28, 2023 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 379.1 | $ | 488.3 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and other deferred cost | 137.8 | 136.5 | ||||||
| Gain on disposal of assets | (0.5 | ) | (6.0 | ) | ||||
| Accrued interest on short-term investments | (9.2 | ) | (4.2 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivable | (1.2 | ) | (0.5 | ) | ||||
| Increase in merchandise inventories | (588.2 | ) | (509.0 | ) | ||||
| Decrease in other current assets | 9.8 | 4.6 | ||||||
| (Increase) decrease in other assets | (1.0 | ) | 0.2 | |||||
| Increase in trade accounts payable and accrued expenses and other liabilities | 447.6 | 354.6 | ||||||
| Decrease in income taxes | (24.8 | ) | (17.4 | ) | ||||
| Net cash provided by operating activities | 349.4 | 447.1 | ||||||
| Investing activities: | ||||||||
| Purchase of property and equipment and capitalized software | (89.1 | ) | (104.7 | ) | ||||
| Proceeds from disposal of assets | 0.6 | 6.3 | ||||||
| Proceeds from insurance | — | 4.5 | ||||||
| Purchase of short-term investments | (422.4 | ) | (148.1 | ) | ||||
| Proceeds from maturities of short-term investments | 450.8 | 250.0 | ||||||
| Net cash (used in) provided by investing activities | (60.1 | ) | 8.0 | |||||
| Financing activities: | ||||||||
| Cash dividends paid | (12.2 | ) | (10.1 | ) | ||||
| Purchase of treasury stock | (105.0 | ) | (263.3 | ) | ||||
| Net cash used in financing activities | (117.2 | ) | (273.4 | ) | ||||
| Increase in cash and cash equivalents and restricted cash | 172.1 | 181.7 | ||||||
| Cash and cash equivalents and restricted cash, beginning of period | 808.3 | 660.3 | ||||||
| Cash and cash equivalents, end of period | $ | 980.4 | $ | 842.0 | ||||
| Non-cash transactions: | ||||||||
| Accrued capital expenditures | $ | 9.9 | $ | 10.9 | ||||
| Accrued purchase of treasury stock and excise taxes | 3.1 | 4.6 | ||||||
| Stock awards | 1.6 | 1.3 | ||||||
| Lease assets obtained in exchange for new operating lease liabilities | 2.2 | 9.2 | ||||||
Estimates for 2024
The Company is providing the following estimates for certain financial statement items for the 52-week period ending February 1, 2025 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”
| In Millions | ||||||||
| 2024 Estimated | 2023 Actual | |||||||
| Depreciation and amortization | $ | 180 | $ | 180 | ||||
| Rentals | 22 | 22 | ||||||
| Interest and debt (income) expense, net | (13 | ) | (5 | ) | ||||
| Capital expenditures | 110 | 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 February 1, 2025 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 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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