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Dillard's Gains But Misses In Q4

Monday February 25th, 2013 - 11:11AM


Dillard's, Inc. reported net income for the 53 weeks ended February 2 of $336 million, or $6.87 per share, versus $463.9 million, or $8.52 per share, for the 52-week period ended January 28, 2012. The retailer posted an adjusted total sales increase of 3% as sales in comparable stores increased 4% for the fiscal year.

Net sales for the 2012 fiscal year were $6.59 billion versus $6.26 billion in the year earlier, Dillard’s stated

Dillard’s noted that net income includes a net after-tax credit totaling $26.7 million, or 55 cents per share, comprised of after-tax gains of $7.4 million, or 15 cents per share, related to the sale of three former retail store locations, an after-tax asset impairment and store closing charges of $1 million, or two cents per share, a $1.7 million, or three cents per share, tax benefit due to the reversal of a valuation allowance related to a deferred tax asset consisting of a capital loss carry forward, and a $18.6 million, or 38 cents per share, tax benefit resulting from a one-time deduction related to dividends paid to the Dillard's, Inc. Investment and Employee Stock Ownership Plan.

Excluding these items, Dillard's would have reported $309.3 million, or $6.32 per share, for the 53 weeks ended February 2, marking a record-setting adjusted fiscal year earnings per share performance and a 50% improvement over prior year adjusted earnings per share, the company asserted.

Excluding one-time considerations, Dillard’s would have recorded net income of $229.4 million, or $4.21 per share, for the prior year 52-week period.

Net sales for the 53-week fiscal 2012 were $6.59 billion versys $6.26 billion for the 52 weeks of fiscal 2011. Fourth quarter total merchandise sales were $6.49 billion versus $6.19 billion for the year earlier.  Total merchandise sales increased 5% for the 53-week latest year versus the 52-week year prior.  Based on comparable weeks, total sales increased 3% while comparable store sales increased 4% year over year.

In the 14 week fourth quarter ended February 2, Dillard's reported net income of $161.4 million, or $3.36 per share.  Included in net income is a net after-tax credit totaling $23.9 million, or 50 cents per share. Excluding the tax credit, Dillard's would have reported net income of $137.6 million, or $2.87 per share, for the quarter. Net income for the 13-week prior-year fourth quarter was $141.5 million, or $2.77 per share, including a net after-tax credit totaling $28.7 million, or 56 cents per share, related to the settlement of a lawsuit.  Excluding the credit, Dillard’s would have recorded net income of $112.8 million, or $2.21 per share, for the period, the company related.

A published fourth-quarter consensus analyst estimate compiled by Thomson Reuters was for $2.89 per share.

Fourth quarter net sales were $2.11 billion versus $1.97 billion for the 13 weeks ended January 28, 2012.  Dillard’s net sales include the operations of its construction business, CDI Contractors, LLC. Excluding the CDI contribution, total merchandise sales, were $2.09 billion versus $1.95 billion for the quarter year over year. On a like-period basis, total sales increased 2% and sales in comparable stores increased 3%.  

Sales trends were strongest in ladies accessories and lingerie and men's apparel and accessories while sales in the home and furniture categories were weakest, Dillard’s said Sales trends were strongest in the Central region, Dillard’s indicated, followed by the Eastern and Western regions.