Dillard’s Income, Sales Dip in Q4, Year, but Retailer Still Beat Expectations
- Despite the decline, Dillard’s Q4 results beat analyst expectations of $9.66 a share, with stronger performing categories including home, furniture, and cosmetics, while men’s apparel and accessories and shoes were weaker.
The holidays weren't all that happy for Dillard's last year.
The Little Rock, Ark.-based department store chain reported Tuesday that both comparable-store sales and total retail sales dipped 1 percent in the fourth quarter and net income fell 14.4 percent to $214.4 million, or $13.48 a share, from $250.5 million, or $15.44 a share in the same period the prior year.
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Even so, the results beat analyst expectations of $9.66 a share.
Stronger performing categories were home, furniture and cosmetics, the company said, while men's apparel and accessories and shoes were weaker in the period.
As a result of the soft sales, gross margin also declined in the period, falling to 36.1 percent of sales compared to 37.7 percent of sales the year before. Inventories were up 7 percent. Gross margin decreased slightly in shoes, cosmetics and men's apparel and accessories, the company said, and fell "significantly" in home, furniture and women's apparel.
"With sales down 1 percent, we worked on controlling expenses but lost some steam on gross margins," said William T. Dillard 2nd, chief executive officer. He did not provide further comment.
Included in net income for the 13 weeks ended Feb. 1 are federal and state income tax benefits of $30.8 million, the company said.
For the full year, the retailer reported that comparable-store sales fell 3 percent and total retail sales were down 2 percent for the 52 weeks. Net income fell more dramatically, hitting $593.5 million, or $36.82 a share, from $738.8 million, or $44.73 a share, the prior year, a drop of 19.7 percent. Included in net income for the 52 weeks ended Feb. 1 are federal and state income tax benefits of $30.8 million.
The company did not provide details about the performance of specific product categories for the full year. It also did not offer projections for this year, saying only that capital expenditures are estimated to be $120 million, up from $105 million in 2024.
During the fourth quarter, the company repurchased approximately 36,000 shares of Class A common stock at an average price of $391.04 a share for $14 million. As of Feb. 1, an authorization of $273 million remained in its buyback authorization.
Earlier this month, the retailer introduced a special capsule of women's dresses and separates — Style by Simkins for Antonio Melani — by New York-based content creator and stylist Natalie Simkins as well as a limited-edition collection of infants' and children's apparel with interior designer Kristin Ellen Hockman for its Edgehill label.
Dillard's operates 272 stores, including 28 clearance centers, in 30 states.
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