Dillard’s, Inc. (NYSE: DDS) (the “Company” or “Dillard’s”)
announced operating results for the 13 and 26 weeks ended August 3,
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, “We are disappointed with our weak performance in the
second quarter. While the consumer environment remained challenged,
our expenses were up, squeezing our profitability. We are working
to address this. We ended the quarter with over $1 billion in cash
and short-term investments.”
Highlights of the 26 Weeks (compared to the prior year
26 weeks):
- Total retail
sales decreased 3%
- Comparable
store sales decreased 3%
- Net income
of $254.5 million compared to $333.0 million
- Earnings per
share of $15.68 compared to $19.89
- Retail gross
margin of 42.7% of sales compared to 43.0% of sales
- Operating
expenses were $860.3 million (28.3% of sales) compared to $818.9
million (26.0% of sales)
- Ending
inventory was essentially unchanged
26-Week Results
Dillard’s reported net income for the 26 weeks ended August 3,
2024 of $254.5 million, or $15.68 per share, compared to $333.0
million, or $19.89 per share, for the 26 weeks ended July 29, 2023.
Included in net income for the prior year 26-week period is a
pretax gain of $2.0 million ($1.5 million after tax or $0.09 per
share) primarily related to the sale of a store property.
Sales – 26 Weeks
Net sales for the 26 weeks ended August 3, 2024 and July 29,
2023 were $3.039 billion and $3.151 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 26 weeks ended
August 3, 2024 and July 29, 2023 were $2.919 billion and $3.013
billion, respectively. Total retail sales decreased 3% for the
26-week period ended August 3, 2024 compared to the 26-week period
ended July 29, 2023. Sales in comparable stores for that same
period decreased 3%.
Gross Margin – 26 Weeks
Consolidated gross margin for the 26 weeks ended August 3, 2024
was 41.2% of sales compared to 41.3% of sales for the 26 weeks
ended July 29, 2023.
Retail gross margin (which excludes CDI) for the 26 weeks ended
August 3, 2024 was 42.7% of sales compared to 43.0% of sales for
the 26 weeks ended July 29, 2023.
Inventory was essentially unchanged at August 3, 2024 compared
to July 29, 2023.
Selling, General & Administrative Expenses – 26
Weeks
Consolidated selling, general and administrative expenses
(“operating expenses”) for the 26 weeks ended August 3, 2024 were
$860.3 million (28.3% of sales) compared to $818.9 million (26.0%
of sales) for the 26 weeks ended July 29, 2023. The increase in
operating expenses is primarily due to increased payroll
expenses.
Highlights of the Second Quarter (compared to the prior
year second quarter):
- Total retail
sales decreased 5%
- Comparable
store sales decreased 5%
- Net income
of $74.5 million compared to $131.5 million
- Earnings per
share of $4.59 compared to $7.98
- Retail gross
margin of 39.1% of sales compared to 40.4% of sales
- Operating
expenses were $433.6 million (29.1% of sales) compared to $412.6
million (26.3% of sales)
Second Quarter Results
Dillard’s reported net income for the 13 weeks ended August 3,
2024 of $74.5 million, or $4.59 per share, compared to $131.5
million, or $7.98 per share, for the 13 weeks ended July 29,
2023.
Sales – Second Quarter
Net sales for the 13 weeks ended August 3, 2024 and July 29,
2023 were $1.490 billion and $1.567 billion,
respectively.
Total retail sales for the 13 weeks ended August 3, 2024 and
July 29, 2023 were $1.426 billion and $1.499 billion, respectively.
Total retail sales decreased 5% for the 13-week period ended August
3, 2024 compared to the 13-week period ended July 29, 2023. Sales
in comparable stores for that same period decreased 5%. Cosmetics
was the strongest performing merchandise category, with the weakest
performances noted in men’s apparel and accessories and shoes.
Gross Margin – Second Quarter
Consolidated gross margin for the 13 weeks ended August 3, 2024
was 37.6% of sales compared to 38.8% of sales for the 13 weeks
ended July 29, 2023.
Retail gross margin for the 13 weeks ended August 3, 2024 was
39.1% of sales compared to 40.4% of sales for the 13 weeks ended
July 29, 2023. The retail gross margin performance was essentially
flat compared to the prior year second quarter in men’s apparel and
accessories and decreased slightly in cosmetics and juniors’ and
children’s apparel. Moderate gross margin decreases were noted in
shoes, ladies’ accessories and lingerie, home and furniture, and
ladies’ apparel.
Selling, General & Administrative Expenses – Second
Quarter
Consolidated operating expenses for the 13 weeks ended August 3,
2024 were $433.6 million (29.1% of sales) compared to $412.6
million (26.3% of sales) for the 13 weeks ended July 29, 2023. The
increase in operating expenses was primarily due to increased
payroll expenses. The Company is working to better align expenses
to sales performance.
Other Information
The Company closed its Eastwood Mall Clearance Center in Niles,
Ohio (120,000 square feet) in June, 2024.
The Company operates 273 Dillard’s stores, including 28
clearance centers, spanning 30 states (totaling 46.5 million square
feet) and an Internet store at dillards.com.
Total shares outstanding (Class A and Class B Common Stock) at
August 3, 2024 and July 29, 2023 were 16.2 million and 16.4
million, respectively.
Dillard’s, Inc. and SubsidiariesCondensed Consolidated Statements
of Income (Unaudited)(In Millions, Except Per Share Data) |
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13 Weeks Ended |
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26 Weeks Ended |
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August 3, 2024 |
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July 29, 2023 |
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August 3, 2024 |
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July 29, 2023 |
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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 |
|
Sales |
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Amount |
|
Sales |
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Amount |
|
Sales |
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Net sales |
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$ |
1,489.9 |
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100.0 |
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% |
$ |
1,567.4 |
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100.0 |
% |
$ |
3,039.0 |
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100.0 |
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% |
$ |
3,151.3 |
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100.0 |
% |
Service charges and other
income |
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24.7 |
|
|
1.7 |
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30.0 |
|
1.9 |
|
|
48.5 |
|
|
1.6 |
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60.0 |
|
1.9 |
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|
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1,514.6 |
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|
101.7 |
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1,597.4 |
|
101.9 |
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3,087.5 |
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101.6 |
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3,211.3 |
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101.9 |
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Cost of sales |
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930.3 |
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62.4 |
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|
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958.8 |
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61.2 |
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1,788.2 |
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58.8 |
|
|
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1,850.1 |
|
58.7 |
|
Selling, general and
administrative expenses |
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433.6 |
|
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29.1 |
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|
412.6 |
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26.3 |
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|
860.3 |
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28.3 |
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|
818.9 |
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26.0 |
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Depreciation and
amortization |
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46.4 |
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|
3.1 |
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|
|
44.8 |
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2.9 |
|
|
92.5 |
|
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3.0 |
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|
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90.6 |
|
2.9 |
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Rentals |
|
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4.9 |
|
|
0.3 |
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5.0 |
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0.3 |
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|
10.0 |
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0.3 |
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9.3 |
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0.3 |
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Interest and debt (income)
expense, net |
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(3.9 |
) |
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(0.3 |
) |
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0.1 |
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0.0 |
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(7.4 |
) |
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(0.2 |
) |
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0.3 |
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0.0 |
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Other expense |
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6.2 |
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0.4 |
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4.7 |
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0.3 |
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12.3 |
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0.4 |
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9.4 |
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0.3 |
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Gain on disposal of assets |
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— |
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0.0 |
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0.2 |
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0.0 |
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0.3 |
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0.0 |
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2.0 |
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0.1 |
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Income before income taxes |
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97.1 |
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6.5 |
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171.6 |
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10.9 |
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331.9 |
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10.9 |
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|
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434.7 |
|
13.8 |
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Income taxes |
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22.6 |
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|
|
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40.1 |
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|
|
77.4 |
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|
|
|
101.7 |
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Net income |
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$ |
74.5 |
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5.0 |
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% |
$ |
131.5 |
|
8.4 |
% |
$ |
254.5 |
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8.4 |
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% |
$ |
333.0 |
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10.6 |
% |
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Basic and diluted earnings per
share |
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$ |
4.59 |
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$ |
7.98 |
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$ |
15.68 |
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$ |
19.89 |
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Basic and diluted weighted
average shares outstanding |
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16.2 |
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16.5 |
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16.2 |
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16.7 |
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Dillard’s, Inc. and SubsidiariesCondensed Consolidated Balance
Sheets (Unaudited)(In Millions) |
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August 3, |
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July 29, |
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2024 |
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2023 |
Assets |
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Current assets: |
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Cash and cash equivalents |
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$ |
946.7 |
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$ |
774.3 |
Accounts receivable |
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64.5 |
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59.7 |
Short-term investments |
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123.7 |
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150.2 |
Merchandise inventories |
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|
1,191.4 |
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|
1,192.7 |
Federal and state income taxes |
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|
35.5 |
|
|
— |
Other current assets |
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91.7 |
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|
103.3 |
Total current assets |
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2,453.5 |
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2,280.2 |
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Property and equipment, net |
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1,044.9 |
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|
1,098.9 |
Operating lease assets |
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39.0 |
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30.4 |
Deferred income taxes |
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|
63.9 |
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46.0 |
Other assets |
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60.6 |
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56.9 |
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Total assets |
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$ |
3,661.9 |
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$ |
3,512.4 |
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Liabilities and stockholders’
equity |
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Current liabilities: |
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Trade accounts payable and accrued expenses |
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$ |
768.8 |
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$ |
803.1 |
Current portion of operating lease liabilities |
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|
11.5 |
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8.1 |
Federal and state income taxes |
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— |
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|
115.6 |
Total current liabilities |
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780.3 |
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926.8 |
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Long-term debt |
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321.5 |
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|
321.4 |
Operating lease liabilities |
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27.5 |
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|
22.3 |
Other liabilities |
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|
383.7 |
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|
332.4 |
Subordinated debentures |
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|
200.0 |
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|
200.0 |
Stockholders’ equity |
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1,948.9 |
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|
1,709.5 |
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Total liabilities and
stockholders’ equity |
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$ |
3,661.9 |
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$ |
3,512.4 |
Dillard’s, Inc. and SubsidiariesCondensed Consolidated Statements
of Cash Flows (Unaudited)(In Millions) |
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26 Weeks Ended |
|
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August 3, |
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July 29, |
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|
2024 |
|
|
2023 |
|
Operating activities: |
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|
|
|
|
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Net income |
|
$ |
254.5 |
|
|
$ |
333.0 |
|
Adjustments to reconcile net
income to net cash provided by operating activities: |
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|
|
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Depreciation and amortization of property and other deferred
cost |
|
|
93.4 |
|
|
|
91.4 |
|
Gain on disposal of assets |
|
|
(0.3 |
) |
|
|
(2.0 |
) |
Accrued interest on short-term investments |
|
|
(7.1 |
) |
|
|
(3.1 |
) |
Changes in operating assets and
liabilities: |
|
|
|
|
|
|
Increase in accounts receivable |
|
|
(3.9 |
) |
|
|
(2.7 |
) |
Increase in merchandise inventories |
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|
(97.4 |
) |
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|
(72.5 |
) |
Decrease (increase) in other current assets |
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|
3.8 |
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|
|
(12.4 |
) |
(Increase) decrease in other assets |
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(1.5 |
) |
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4.5 |
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Decrease in trade accounts payable and accrued expenses and other
liabilities |
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|
(3.2 |
) |
|
|
(24.9 |
) |
(Decrease) increase in income taxes |
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|
(62.4 |
) |
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|
86.6 |
|
Net cash provided by operating
activities |
|
|
175.9 |
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|
|
397.9 |
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|
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Investing activities: |
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|
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Purchase of property and
equipment and capitalized software |
|
|
(61.1 |
) |
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|
(63.8 |
) |
Proceeds from disposal of
assets |
|
|
0.3 |
|
|
|
2.1 |
|
Purchase of short-term
investments |
|
|
(319.5 |
) |
|
|
(148.1 |
) |
Proceeds from maturities of
short-term investments |
|
|
350.9 |
|
|
|
150.0 |
|
Net cash used in investing
activities |
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|
(29.4 |
) |
|
|
(59.8 |
) |
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Financing activities: |
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|
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Cash dividends paid |
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|
(8.1 |
) |
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|
(6.8 |
) |
Purchase of treasury stock |
|
|
— |
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|
|
(217.3 |
) |
Net cash used in financing
activities |
|
|
(8.1 |
) |
|
|
(224.1 |
) |
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|
|
|
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|
|
Increase in cash and cash
equivalents and restricted cash |
|
|
138.4 |
|
|
|
114.0 |
|
Cash and cash equivalents and
restricted cash, beginning of period |
|
|
808.3 |
|
|
|
660.3 |
|
Cash and cash equivalents, end of
period |
|
$ |
946.7 |
|
|
$ |
774.3 |
|
|
|
|
|
|
|
|
Non-cash transactions: |
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|
|
|
|
|
Accrued capital expenditures |
|
$ |
8.4 |
|
|
$ |
12.0 |
|
Accrued purchase of treasury
stock and excise taxes |
|
|
— |
|
|
|
2.2 |
|
Stock awards |
|
|
1.6 |
|
|
|
1.3 |
|
Lease assets obtained in exchange
for new operating lease liabilities |
|
|
2.2 |
|
|
|
2.0 |
|
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.”
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In Millions |
|
|
2024 |
|
|
2023 |
|
|
|
Estimated |
|
Actual |
Depreciation and
amortization |
|
$ |
185 |
|
|
$ |
180 |
|
Rentals |
|
|
22 |
|
|
|
22 |
|
Interest and debt (income)
expense, net |
|
|
(13 |
) |
|
|
(5 |
) |
Capital expenditures |
|
|
120 |
|
|
|
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,
rising 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.
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CONTACT: |
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Dillard’s, Inc. |
|
Julie J. Guymon |
|
501-376-5965 |
|
julie.guymon@dillards.com |
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Dillards (NYSE:DDS)
過去 株価チャート
から 11 2024 まで 12 2024
Dillards (NYSE:DDS)
過去 株価チャート
から 12 2023 まで 12 2024