Dillard’s reported net sales for the fiscal fourth quarter ended January 28 were up slightly to $2.13 billion, compared to $2.11 billion in the year-ago period. Total retail sales for the quarter were $2.069 billion and $2.078 billion, respectively. Total retail sales were $2.07 billion, down slightly from $2.08 billion in the year-ago period. Comparable store sales were reported as “unchanged.” Net sales include the operations of the company’s construction business, CDI Contractors, LLC (“CDI”).

Stronger performing categories included cosmetics and ladies’ apparel. Home and furniture was the weakest performing category.

Fourth quarter consolidated gross margin 37.7 percent of sales compared to 40.8 percent of sales for the prior-year fourth quarter. Retail gross margin of 38.7 percent marked the company’s second-best fourth quarter performance compared to a record 41.4 percent for the prior-year fourth quarter. Weaker sales at the beginning of the quarter and during the holiday season led to increased markdowns and stronger January sales compared to the prior year’s fourth quarter.

Consolidated operating expenses for the quarter were $458.4 million (21.6 percent of sales) compared to $440.9 million (20.9 percent of sales) for the prior-year fourth quarter.

Retail operating expenses were $456.3 million (22.0 percent of sales) compared to $439.0 million (21.1 percent of sales) in the prior-year comp quarter.

Dillard’s reported net income for the 13 weeks ended January 28, 2023 of $289.2 million, or $16.89 per share, compared to net income of $321.2 million, or $16.61 per share, for the 13 weeks ended January 29, 2022. Included in net income for the 13 weeks ended January 28, 2023 is a pretax gain of $13.8 million ($10.8 million after-tax or 63 cents per share) primarily related to the sale of two store properties.

Also included in net income for the 13 weeks ended January 28, 2023 are two tax-related benefits:

  • a federal income tax benefit of $16.3 million (95 cents 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 (80 cents per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carry forwards.

Included in net income for the prior year’s 13-week period ended January 29, 2022 is a federal income tax benefit of $18.0 million (93 cents 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.

Inventory increased 4 percent at quarter-end, compared to the prior-year quarter-end.

For the full fiscal year, Dillard’s reported net sales were $6.87 billion for the period ended January 28, an increase of 5.4 percent compared to $6.49 billion in the prior year. Total retail sales (which excludes CDI) for the 52-week period rose 5.1 percent to $6.70 billion from $6.38 billion in the prior year. Sales in comparable stores increased 5 percent for the year.

Consolidated gross margin for the fiscal year was 42.0 percent of sales compared to 42.3 percent of sales for the prior year’s 52-week period. Retail gross margin (which excludes CDI) for the 52 weeks ended January 28, 2023 was 43.0 percent of sales compared to 42.9 percent of sales for the prior year 52-week period.

Consolidated selling, general and administrative expenses (SG&A) for the year were $1.67 billion (24.4 percent of sales) compared to $1.54 billion (23.7 percent of sales) for the prior-year 52-week period. The increase of approximately $138 million is primarily due to increases in payroll and payroll-related expenses.

Net income came in at $891.6 million, or $50.81 per share, for the year, compared to $862.5 million, or $41.88 per share, for the prior year’s 52-week period. Included in net income for the 52 weeks ended January 28, 2023 is a pretax gain of $21.0 million ($16.4 million after-tax or 94 cents per share) primarily related to the sale of three store properties.

Also included in net income for the 52 weeks ended January 28, 2023 are two tax-related benefits:

  • a federal income tax benefit of $16.3 million (93 cents 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 year;
  • a net $13.7 million (78 cents per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carry forwards.

Included in net income for the prior year 52-week period ended January 29, 2022 is a pretax gain of $24.7 million ($19.5 million after-tax or 95 cents per share) primarily related to the sale of three store properties.

Also included in net income for the 52 weeks ended January 29, 2022 is a federal income tax benefit of $18.0 million (88 cents 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.

Photo courtesy AP/Dillard’s