Dillard’s net income in the fourth quarter received a boost from the federal government’s tax reform, while comps also gained.
For a fourth quarter that easily surpassed analyst expectations, Dillard’s posted net income of $157.6 million, or $5.55 per share, versus $56.9 million, or $1.72 per share, in the prior fourth quarter.
Included in fourth quarter net income was an estimated tax benefit of $77.4 million, or $2.73 per share, related to the Tax Cuts and Jobs Act of 2017. Adjusted for one-time charges, Dillard’s earnings per share of $2.82 beat a Zacks Investment Research analyst average estimate by a dollar.
Comparable sales gained 3% in the quarter year over year. Net sales were $2.06 billion versus $1.94 billion in the year-earlier quarter. Total merchandise sales were $2.03 billion versus $1.9 billion for the 2016 period. Revenue including service charges and other income was $2.11 billion versus $1.98 billion in the year-previous period.
In the fiscal year, Dillard’s recorded net income of $221.3 million, or $7.51 per share, versus $169.2 million, or $4.93 per share, in the previous fiscal year.
Included in net income was a pretax gain on disposal of assets of $3.2 million after tax, or 11 cents per share, and a $500,000 after tax, or two cents per share, loss on extinguishment of debt as was the estimated tax benefit of approximately $77.4 million, or $2.62 per share, related to the tax reform.
Comps were flat year over year. Net sales were $6.26 billion, about flat with the year prior. Total merchandise sales were $6.11 billion versus $6.07 billion in fiscal 2016. Revenue including service charges and other income was $6.42 billion, essentially flat versus the previous year.