Dillard’s, Inc. reported net sales were $2.124 billion for the fiscal 2023 Q4 period compared to $2.127 billion for the 13-week period ended January 28, 2023. Net sales include the operations of the Company’s construction business, CDI Contractors, LLC

Total retail sales (which excludes CDI) for the fiscal 2023 period were $2.057 billion compared to $2.069 billion for the fiscal 2022 Q4 period ended January 28, 2023. Total retail sales decreased 5 percent on a like-for-like 13-week basis. Sales in comparable stores for that same period decreased 5 percent.

The company noted a continued challenging sales environment during the fourth quarter. Cosmetics was the strongest performing category, followed by home and furniture. Juniors’ and children’s apparel was the weakest category followed by ladies’ accessories and lingerie and ladies’ apparel.

Retail gross margin (which excludes CDI) for the fiscal 2023 Q4 period was 37.7 percent of sales, compared to 38.7 percent of sales for the fiscal 2022 Q4 period. Gross margin increased moderately in home and furniture and was essentially flat in cosmetics, ladies’ accessories and lingerie, and ladies’ apparel. Gross margin decreased slightly in shoes and decreased moderately in juniors’ and children’s apparel and men’s apparel and accessories.

Consolidated selling, general and administrative expenses (SG&A) for the fiscal 2023 Q4 period were $476.7 million (22.4 percent of sales) compared to $458.4 million (21.6 percent of sales) for the fiscal 2022 Q4 period. The increase in SG&A expenses of $18.3 million is primarily due to the additional week of operations in the fourth quarter of fiscal year 2023.

Net income for the fiscal 2023 Q4 period of $250.5 million, or $15.44 per share, compared to $289.2 million, or $16.89 per share, for the fiscal 2022 Q4 period. Included in net income for the fiscal 2023 Q4 period are two tax-related benefits:

  • a federal income tax benefit of $21.1 million ($1.30 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 (45 cents per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
  • Included in net income for the fiscal 2022 Q4 period is a pretax gain of $13.8 million ($10.8 million after-tax or $0.63 per share) primarily related to the sale of two-store properties. Also included in net income for the fiscal 2022 Q4 period are two tax-related benefits:
  • a federal income tax benefit of $16.3 million ($0.95 per share) due to a deduction related to that portion of the special dividend of $15.00 per share that was paid to the Dillard’s, Inc. Investment and Employee Stock Ownership Plan during the quarter
  • a net $13.7 million ($0.80 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards

Inventory decreased 2 percent at February 3, 2024 compared to January 28, 2023.

Image courtesy Dillard’s