Dillard’s Reports Q4 and Fiscal Year Results

Dillard’s, Inc. announced operating results for the 13 and 52 weeks ended February 1, 2014 including record fiscal year earnings per share adjusted for certain items of $6.99 versus $6.33 in the prior year.

For the fourth quarter of 2013, Dillard’s saw a 2% increase in comparable store sales, diluted earnings per share excluding certain items of $2.69 versus $2.87, retail gross margin decline of 180 basis points of sales, and operating expense improvement of 90 basis points of sales.

Dillard’s reported net income for the 13-week period ended February 1, 2014 of $119.1 million ($2.71 per share) compared to net income of $161.4 million ($3.36 per share) for the 14 weeks ended February 2, 2013. Included in net income for the 13-week period ended February 1, 2014 is an after tax credit of $0.8 million ($0.02 per share) representing the reversal of asset impairment charges on a store held for sale.

“Although it was a profitable fourth quarter, we are disappointed in our gross margin performance, as lower than anticipated sales necessitated heavier markdowns. We are pleased with our expense control as well as with our strong cash flow for the year,” Dillard’s CEO, William T. Dillard, II, said.

Dillard’s reported net income for the 52-week period ended February 1, 2014 of $323.7 million ($7.10 per share) compared to net income of $336.0 million ($6.87 per share) for the 53-week period ended February 2, 2013.

Net sales (which include the operations of the company’s construction business, CDI Contractors, LLC) for the 13 weeks ended February 1, 2014 were $2.034 billion and $2.106 billion for the 14 weeks ended February 2, 2013.

Total merchandise sales for the 52-week period ended February 1, 2014 were $6.439 billion and $6.489 billion for the 53-week period ended February 2, 2013. Based upon comparable 52-week periods ended February 1, 2014 and February 2, 2013, total sales increased 1% and sales in comparable stores increased 1% for the fiscal year.

Net sales for the 52 weeks ended February 1, 2014 were $6.532 billion and $6.593 billion for the 53 weeks ended February 2, 2013.

Gross margin from retail operations (which excludes CDI) decreased 180 basis points of sales to 32.8% for the 13 weeks ended February 1, 2014 compared to 34.6% for the 14 weeks ended February 2, 2013. The decline resulted from increased markdowns in response to lower than anticipated sales, the company reported. Consolidated gross margin for the 13 weeks ended February 1, 2014 decreased 180 basis points of sales to 32.6% from 34.4% during the 14 weeks ended February 2, 2013.

During the fourth quarter of 2013, the company closed its University Mall location in Chapel Hill, NC (64,000 square feet), its Collin Creek Mall location in Plano, TX (195,000 square feet) and its Twin Peaks Mall location in Longmont, CO (90,000 square feet). The company closed six locations during fiscal year 2013.

Dillard’s plans to open two new stores in October of 2014: The Shops at Summerlin in Las Vegas, NV (200,000 square feet) and The Mall at University Town Center, Sarasota, Florida (180,000 square feet).

 


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