LITTLE ROCK, Ark., May 22, 2024 (GLOBE NEWSWIRE) -- Dillard's, Inc. ("Dillard's") (NYSE:DDS) is pleased to announce today's launch of DANNIJO for Gianni Bini, a limited-edition fashion collaboration with Florida-born sisters, Danielle Snyder and Jodie Snyder Morel. Renowned for their signature silk slips, statement jewelry and arm parties, the DANNIJO sisters bring their expertise to a captivating range of designs for Gianni Bini. This comprehensive, limited-edition collection offers exclusive, summer-ready ...

Core Insights - Dillard's, Inc. has launched a limited-edition fashion collaboration called DANNIJO for Gianni Bini, featuring designs by sisters Danielle Snyder and Jodie Snyder Morel [1][2] - The collection includes 75 styles for women and girls, focusing on summer-ready apparel, swimwear, footwear, and jewelry [2] - Dillard's aims to cater to both loyal Gianni Bini customers and younger fashion enthusiasts with this new collection [2] Company Overview - DANNIJO is a lifestyle brand founded by sisters Danielle and Jodie, known for statement jewelry and resort-leisure apparel [3][4] - The brand has a significant presence in pop culture and continues to expand its reach [5] - Gianni Bini, launched in 2001, is Dillard's largest ladies' contemporary brand, focusing on high-quality, cutting-edge fashion [6]

Dillard's Inc. (DDS) posted first-quarter fiscal 2024 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. This marked the company's 13th straight quarter of a bottom-line beat. However, DDS's sales and earnings declined year over year. The declines can be attributed to the challenging retail environment, which impacted sales and comps, as well as higher operating expenses. Earnings per share of $11.09 surpassed the Zacks Consensus Estimate of $9.25. However, the bottom line dec ...

Financial Performance - Dillard's reported net income of $180.0 million, or $11.09 per share, for the first quarter, down from $201.5 million, or $11.85 per share, in the prior year[2]. - Total retail sales decreased by 1% to $1.493 billion compared to $1.515 billion in the previous year, with comparable store sales down by 2%[4]. - Retail gross margin improved to 46.2% of sales from 45.6% in the prior year, while consolidated gross margin increased to 44.6% from 43.7%[6][7]. - Operating expenses rose to $426.7 million, representing 27.5% of sales, compared to $406.4 million, or 25.7% of sales, in the previous year[9]. - Total shares outstanding decreased to 16.2 million from 16.8 million year-over-year[11]. Inventory and Operations - Inventory decreased by 2% year-over-year, reflecting effective inventory control measures[8]. - The company opened a new location in Sioux Falls, South Dakota, marking its 30th state of operation[10]. - Dillard's cash and short-term investments exceeded $1 billion for the first time in its history[1]. - Estimated capital expenditures for 2024 are projected at $130 million, slightly down from $133 million in 2023[15]. Merchandise Performance - The company noted that cosmetics was the strongest performing merchandise category, while men's apparel and accessories were the weakest[4]. Risks and Uncertainties - The company cautions that forward-looking statements are based on estimates and assumptions, and actual future performance may differ materially due to various risks and uncertainties[16]. - Factors affecting future performance include general retail industry conditions, macro-economic conditions such as inflation and rising interest rates, and potential U.S. Federal government shutdown[16]. - The company highlights risks related to consumer spending patterns, labor shortages, and competition from other retail channels including online retailers[16]. - Changes in tax legislation and governmental regulations may impact the company's operations and financial performance[16]. - The company is monitoring the effects of global conflicts and public health issues on consumer spending and supply chain efficiencies[17]. - The company emphasizes the importance of stable availability and pricing of materials and labor for sourcing merchandise[16]. - The company acknowledges the potential impact of system failures or data security breaches on its operations[16]. Strategic Considerations - Future acquisitions of store properties from other department store operators are being considered as part of the company's strategy[16]. - The company is focused on maintaining adequate financing to support future business needs[16]. - The company will continue to assess the impact of economic conditions on its customers' buying patterns and overall retail performance[16].

Core Insights - Dillard's reported revenue of $1.55 billion for the quarter ended April 2024, a year-over-year decline of 2.2%, with EPS of $11.09 compared to $11.77 a year ago, indicating a mixed performance against expectations [1] - The revenue exceeded the Zacks Consensus Estimate by 1.19%, while the EPS surprised positively by 19.89% compared to the consensus estimate [1] Financial Performance Metrics - Comparable store sales for domestic retail decreased by 2%, which was better than the estimated decline of 3.3% [3] - Total sales reached $1.57 billion, surpassing the average estimate of $1.52 billion from three analysts [3] - Net sales from construction were reported at $56.10 million, below the average estimate of $70.52 million [3] - Retail operations net sales amounted to $1.49 billion, slightly above the estimated $1.46 billion [3] - Service charges, interest, and other income totaled $23.70 million, falling short of the average estimate of $29.60 million [3] Stock Performance - Dillard's shares have returned +11.9% over the past month, outperforming the Zacks S&P 500 composite's +5% change [4] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [4]

Dillard's (DDS) came out with quarterly earnings of $11.09 per share, beating the Zacks Consensus Estimate of $9.25 per share. This compares to earnings of $11.77 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of 19.89%. A quarter ago, it was expected that this department store operator would post earnings of $11.59 per share when it actually produced earnings of $13.69, delivering a surprise of 18.12%. Over the last four quar ...

Dillard’s, Inc. (DDS) is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2024 numbers.The Zacks Consensus Estimate for fiscal first-quarter revenues of $1.5 billion indicates a 3.4% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $9.25 per share, indicating a 21.4% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.In th ...

PART I [ITEM 1. BUSINESS](index=3&type=section&id=ITEM%201.%20BUSINESS.) Dillard's is a major fashion retailer with 273 stores and an online presence, complemented by a construction segment - Dillard's operates **273 Dillard's stores**, including 28 clearance centers, and an Internet store at dillards.com as of February 3, 2024[10](index=10&type=chunk) - The Company also operates a general contracting construction company, CDI Contractors, LLC, which constructs and remodels stores for the Company[10](index=10&type=chunk) Percentage of Net Sales by Segment and Major Product Line | | Fiscal 2023 (%) | Fiscal 2022 (%) | Fiscal 2021 (%) | |---|---|---|---| | Retail operations segment: | | | | | Cosmetics | 16 | 15 | 14 | | Ladies' apparel | 20 | 21 | 21 | | Ladies' accessories and lingerie | 14 | 14 | 15 | | Juniors' and children's apparel | 9 | 9 | 10 | | Men's apparel and accessories | 19 | 20 | 19 | | Shoes | 14 | 15 | 15 | | Home and furniture | 4 | 4 | 4 | | | 96 | 98 | 98 | | Construction segment | 4 | 2 | 2 | | Total | 100 | 100 | 100 | - The retail merchandise business is highly competitive, with numerous national, local, and Internet competitors, characterized by factors such as location, reputation, merchandise assortment, advertising, price, quality, operating efficiency, service, and credit availability[13](index=13&type=chunk) - Dillard's offers exclusive brand merchandise (e.g., Antonio Melani, Gianni Bini, GB, Roundtree & Yorke, Daniel Cremieux) to provide fashionable, higher-quality products at savings compared to national brands, while differentiating its merchandise offerings[14](index=14&type=chunk) - In January 2024, Dillard's announced a new 10-year agreement with Citibank, N.A. to provide a credit card program, including a new co-branded Mastercard and private label credit card, replacing the Wells Fargo Alliance. The new program is expected to launch in late summer 2024[21](index=21&type=chunk) - Approximately **one-third of Dillard's annual sales** and a significant portion of earnings depend on the last quarter of the fiscal year due to holiday buying patterns[22](index=22&type=chunk) - As of December 25, 2023, Dillard's employed approximately **29,600 associates**, with **86% of full-time associates** working in retail stores. The Company emphasizes internal talent development, with **73% of salaried store managers** promoted from hourly positions, and promotes diversity, with **74% of store associates being women** and **55% non-white**[26](index=26&type=chunk)[28](index=28&type=chunk)[29](index=29&type=chunk)[30](index=30&type=chunk) [ITEM 1A. RISK FACTORS](index=9&type=section&id=ITEM%201A.%20RISK%20FACTORS.) Dillard's faces risks including intense competition, seasonality, economic shifts, supply chain issues, and changing fashion - The retail merchandise business is highly competitive, with numerous national, local, and Internet competitors, which could lead to downward pressure on prices, reduced margins, and loss of market share[38](index=38&type=chunk) - The business is seasonal, with a significant portion of sales and income realized in the last quarter, making results susceptible to holiday spending patterns and weather conditions[39](index=39&type=chunk) - Changes in economic, financial, and political conditions, including unemployment, inflation, interest rates, and energy costs, significantly impact consumer confidence and spending on discretionary items, potentially harming Dillard's business[51](index=51&type=chunk) - Failure to protect Dillard's reputation, respond to changing fashion trends, or manage negative publicity (including social media) could diminish brand loyalty and impact sales[55](index=55&type=chunk)[56](index=56&type=chunk)[57](index=57&type=chunk) - Reliance on foreign sourcing exposes Dillard's to risks from political/economic conditions, trade restrictions (e.g., tariffs, UFLPA), and global supply chain disruptions (e.g., Red Sea attacks, Panama Canal drought, port strikes)[63](index=63&type=chunk)[65](index=65&type=chunk)[66](index=66&type=chunk)[67](index=67&type=chunk) - Income from the private label credit card program (Wells Fargo, now Citi) depends on sales, account balances, payment rates, finance charges, credit losses, and regulatory changes, with the new Citi program expected to initially yield less income[69](index=69&type=chunk)[72](index=72&type=chunk) - Dillard's operations depend on the integrity and security of IT systems (POS, e-commerce, data centers), which are vulnerable to damage or interruption from power outages, cyberattacks, and human error. A breach could lead to loss of sales, business disruption, reputational damage, litigation, and increased operating costs[77](index=77&type=chunk)[78](index=78&type=chunk)[80](index=80&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - Dillard's ability to attract and retain quality employees is crucial, especially given high turnover and a tight labor market; increases in employee wages and healthcare benefit costs are significant expenses that could negatively impact the Company's financial results and cash flows[89](index=89&type=chunk)[90](index=90&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS](index=23&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS.) There are no unresolved staff comments regarding Dillard's financial reports - No unresolved staff comments[91](index=91&type=chunk) [ITEM 1C. CYBERSECURITY](index=23&type=section&id=ITEM%201C.%20CYBERSECURITY.) Dillard's manages cybersecurity risks via a comprehensive program led by its CISO and overseen by the Board - Dillard's has an information security program with annual internal cyber risk assessments, cybersecurity controls, and third-party security firms for vulnerability scans, penetration testing, and PCI DSS compliance[92](index=92&type=chunk)[94](index=94&type=chunk) - The Company addresses third-party cybersecurity risks through pre-acquisition diligence and contractual obligations, participates in industry intelligence sharing, and conducts mandatory annual security awareness training and incident response exercises for associates[95](index=95&type=chunk)[96](index=96&type=chunk) - The CISO, a certified professional with **40 years at Dillard's**, leads the information security program, reporting to the CIO and regularly meeting with senior management, with ultimate oversight from the Board of Directors[100](index=100&type=chunk)[101](index=101&type=chunk)[102](index=102&type=chunk) - Dillard's acknowledges the constant evolution and sophistication of cyber threats and the inherent limitations of security controls, which may only mitigate, not fully eliminate, risks[103](index=103&type=chunk)[105](index=105&type=chunk) [ITEM 2. PROPERTIES](index=27&type=section&id=ITEM%202.%20PROPERTIES.) Dillard's operates 273 stores (46.7M sq ft, mostly owned) across 29 states, alongside distribution and executive facilities - As of February 3, 2024, Dillard's operated **273 stores** in **29 states**, totaling approximately **46.7 million square feet**, with approximately **43.0 million square feet owned**[106](index=106&type=chunk) Retail Store Count and Footprint by State (February 3, 2024) | Location | Number of Stores | Owned Stores | Leased Stores | Owned Building on Leased Land | Partially Owned and Partially Leased | |---|---|---|---|---|---| | Alabama | 9 | 9 | — | — | — | | Arkansas | 8 | 8 | — | — | — | | Arizona | 14 | 13 | — | 1 | — | | California | 3 | 3 | — | — | — | | Colorado | 8 | 8 | — | — | — | | Florida | 40 | 37 | 1 | 2 | — | | Georgia | 12 | 9 | 3 | — | — | | Iowa | 3 | 3 | — | — | — | | Idaho | 2 | 2 | — | — | — | | Illinois | 3 | 3 | — | — | — | | Indiana | 3 | 3 | — | — | — | | Kansas | 5 | 3 | — | 2 | — | | Kentucky | 6 | 5 | 1 | — | — | | Louisiana | 14 | 13 | 1 | — | — | | Missouri | 8 | 6 | 1 | 1 | — | | Mississippi | 6 | 4 | 1 | 1 | — | | Montana | 2 | 2 | — | — | — | | North Carolina | 13 | 13 | — | — | — | | Nebraska | 2 | 2 | — | — | — | | New Mexico | 5 | 3 | 2 | — | — | | Nevada | 5 | 5 | — | — | — | | Ohio | 12 | 10 | 2 | — | — | | Oklahoma | 7 | 6 | 1 | — | — | | South Carolina | 7 | 7 | — | — | — | | Tennessee | 10 | 9 | 1 | — | — | | Texas | 55 | 49 | 5 | — | 1 | | Utah | 5 | 5 | — | — | — | | Virginia | 5 | 5 | — | — | — | | Wyoming | 1 | 1 | — | — | — | | Total | 273 | 246 | 19 | 7 | 1 | Additional Facilities (February 3, 2024) | Facility | Location | Square Feet | Owned / Leased | |---|---|---|---| | Distribution Centers: | Mabelvale, Arkansas | 400,000 | Owned | | | Gilbert, Arizona | 295,000 | Owned | | | Valdosta, Georgia | 370,000 | Owned | | | Olathe, Kansas | 500,000 | Owned | | | Salisbury, North Carolina | 355,000 | Owned | | | Ft. Worth, Texas | 700,000 | Owned | | Internet Fulfillment Center | Maumelle, Arkansas | 850,000 | Owned | | Dillard's Executive Offices | Little Rock, Arkansas | 333,000 | Owned | | CDI Contractors, LLC Executive Office | Little Rock, Arkansas | 25,000 | Owned | | CDI Storage Facilities | Maumelle, Arkansas | 66,000 | Owned | | Total | | 3,894,000 | | [ITEM 3. LEGAL PROCEEDINGS](index=28&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS.) As of March 29, 2024, Dillard's and its subsidiaries are not party to any material legal proceedings, though they are involved in routine litigation arising from normal business operations - As of March 29, 2024, Dillard's and its subsidiaries are not involved in any material legal proceedings[109](index=109&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES](index=28&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) This item is not applicable to Dillard's operations - Mine Safety Disclosures are not applicable to Dillard's[110](index=110&type=chunk) PART II [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES](index=30&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY%2C%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES.) Dillard's Class A Common Stock trades on NYSE, with a $500 million repurchase program, outperforming market indices - Dillard's Class A Common Stock trades on the NYSE (DDS); no public market exists for Class B Common Stock. The Company expects to continue paying quarterly cash dividends in fiscal 2024, subject to Board approval[115](index=115&type=chunk)[116](index=116&type=chunk) - As of March 2, 2024, there were **2,157 holders of record** for Class A Common Stock and **4 for Class B Common Stock**[117](index=117&type=chunk) - In May 2023, Dillard's Board approved a **$500 million stock repurchase program** for Class A Common Stock. As of February 3, 2024, **$394.0 million of authorization remained** under the May 2023 Stock Plan[118](index=118&type=chunk)[120](index=120&type=chunk) Common Stock Repurchase Activity (Fiscal 2023) | Period | Total Number of Shares Purchased | Average Price Paid per Share ($) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs ($) | |---|---|---|---|---| | October 29, 2023 through November 25, 2023 | 52,042 | $310.55 | 52,042 | $393,996,507 | | November 26, 2023 through December 30, 2023 | — | — | — | $393,996,507 | | December 31, 2023 through February 3, 2024 | — | — | — | $393,996,507 | | Total | 52,042 | $310.55 | 52,042 | $393,996,507 | - Share repurchases after December 31, 2022, are subject to a **1% excise tax** under the Inflation Reduction Act of 2022; **$2.8 million was accrued** as of February 3, 2024[238](index=238&type=chunk) Securities Available for Future Issuance Under Equity Compensation Plans (February 3, 2024) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise prices of outstanding options, warrants and rights (b) ($) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |---|---|---|---| | Equity compensation plans approved by stockholders* | — | $— | 8,212,875 | | Equity compensation plans not approved by stockholders | — | — | — | | Total | — | $— | 8,212,875 | Cumulative Total Return ($100 Investment) | | 2019 ($) | 2020 ($) | 2021 ($) | 2022 ($) | 2023 ($) | |---|---|---|---|---|---| | Dillard's, Inc. | $93.24 | $137.03 | $410.71 | $652.70 | $709.75 | | S&P 500 | 121.56 | 142.53 | 172.46 | 161.03 | 199.42 | | DJ US Apparel Retailers | 112.99 | 120.80 | 132.11 | 145.96 | 167.94 | [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=33&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS.) Dillard's fiscal 2023 net income was $738.8 million, a decrease driven by lower retail sales and gross margin, despite construction segment growth - Dillard's ended fiscal 2023 with **$956.3 million in cash and short-term investments** after returning **$620.0 million to stockholders**[128](index=128&type=chunk) - Total retail sales decreased **5%** and comparable store sales decreased **4%** for the 52-week period ended January 27, 2024, compared to the prior year[129](index=129&type=chunk) Fiscal Year Net Income and EPS | Metric | Fiscal 2023 ($) | Fiscal 2022 ($) | |---|---|---| | Net Income | $738.8 million | $891.6 million | | EPS | $44.73 | $50.81 | Key Performance Indicators (Fiscal 2021-2023) | Indicator | Fiscal 2023 | Fiscal 2022 | Fiscal 2021 | |---|---|---|---| | Net sales (millions $) | $6,752.1 | $6,871.1 | $6,493.0 | | Gross margin (millions $) | $2,720.9 | $2,887.5 | $2,745.3 | | Gross margin as a percentage of net sales (%) | 40.3 % | 42.0 % | 42.3 % | | Retail gross margin as a percentage of retail net sales (%) | 41.8 % | 43.0 % | 42.9 % | | Selling, general and administrative expenses as a percentage of net sales (%) | 25.4 % | 24.4 % | 23.7 % | | Cash flow provided by operations (millions $) | $883.6 | $948.4 | $1,280.0 | | Total retail store count at end of period | 273 | 277 | 280 | | Retail sales per square foot ($/sq ft) | $143 | $146 | $138 | | Retail stores sales trend (%) | (5)% ** | 5 % | 53 % | | Comparable retail store sales trend (%) | (4)% ** | 5 % | * | | Retail store inventory trend (%) | (2)% | 4 % | (1)% | | Retail merchandise inventory turnover | 2.8 | 2.9 | 2.9 | - Economic and geopolitical factors like inflation, interest rate increases, fluctuating gas prices, shipping costs, and a tight labor market are affecting the U.S. and world economies, with an unestimable financial impact for fiscal 2024[145](index=145&type=chunk) Fiscal 2024 Estimated Financial Measures | (in millions of dollars) | Fiscal 2024 Estimated ($ millions) | Fiscal 2023 Actual ($ millions) | |---|---|---| | Depreciation and amortization | $185 | $180 | | Rentals | 22 | 22 | | Interest and debt (income) expense, net | (8) | (5) | | Capital expenditures | 125 | 133 | Consolidated Statements of Income (Fiscal 2021-2023) | | February 3, 2024 (Amount $) | February 3, 2024 (% of Net Sales) | January 28, 2023 (Amount $) | January 28, 2023 (% of Net Sales) | January 29, 2022 (Amount $) | January 29, 2022 (% of Net Sales) | |---|---|---|---|---|---|---| | Net sales | $6,752,053 | 100.0 % | $6,871,081 | 100.0 % | $6,492,993 | 100.0 % | | Service charges and other income | 122,367 | 1.8 | 125,134 | 1.8 | 131,274 | 2.0 | | Cost of sales | 4,031,108 | 59.7 | 3,983,598 | 58.0 | 3,747,665 | 57.7 | | Selling, general and administrative expenses | 1,717,415 | 25.4 | 1,674,317 | 24.4 | 1,536,554 | 23.7 | | Depreciation and amortization | 179,573 | 2.7 | 188,440 | 2.7 | 199,321 | 3.1 | | Rentals | 21,569 | 0.3 | 23,169 | 0.3 | 22,594 | 0.3 | | Interest and debt (income) expense, net | (4,600) | (0.1) | 30,527 | 0.4 | 43,092 | 0.7 | | Other expense | 18,791 | 0.3 | 7,744 | 0.1 | 11,366 | 0.2 | | Gain on disposal of assets | (6,053) | (0.1) | (21,047) | (0.3) | (24,688) | (0.4) | | Income before income taxes | 916,617 | 13.6 | 1,109,467 | 16.1 | 1,088,363 | 16.8 | | Income taxes | 177,770 | 2.6 | 217,830 | 3.2 | 225,890 | 3.5 | | Net income | $738,847 | 10.9 % | $891,637 | 13.0 % | $862,473 | 13.3 % | - Retail operations segment net sales decreased **$222.4 million (3%)** in fiscal 2023, with comparable store sales down **4%**. Construction segment net sales increased **$103.4 million (61%)** due to increased activity[187](index=187&type=chunk)[189](index=189&type=chunk) - Consolidated gross margin decreased **170 basis points to 40.3%** in fiscal 2023, with retail gross margin down **120 basis points to 41.8%**[193](index=193&type=chunk) - SG&A increased **$43.1 million (100 basis points of sales)** in fiscal 2023, primarily due to increased payroll and payroll-related expenses (**$1,217.3 million, up 3.8%**)[197](index=197&type=chunk)[198](index=198&type=chunk) - Net interest and debt (income) expense improved by **$35.1 million** in fiscal 2023, primarily due to an increase in interest income[202](index=202&type=chunk) - The effective income tax rate was **19.4%** in fiscal 2023, compared to **19.6%** in fiscal 2022, benefiting from ESOP dividend deductions (**$27.2 million**) and release of valuation allowances (**$9.8 million**)[208](index=208&type=chunk)[209](index=209&type=chunk) Cash Flows (Fiscal 2021-2023) | (in thousands of dollars) | Fiscal 2023 ($ thousands) | Fiscal 2022 ($ thousands) | Fiscal 2021 ($ thousands) | Percent Change 2023 - 2022 (%) | Percent Change 2022 - 2021 (%) | |---|---|---|---|---|---| | Operating activities | $883,590 | $948,391 | $1,280,020 | (6.8)% | (25.9)% | | Investing activities | (115,594) | (235,853) | (69,788) | (51.0) | (238.0) | | Financing activities | (620,040) | (768,966) | (853,812) | 19.4 | 9.9 | | Total cash provided (used) | $147,956 | $(56,428) | $356,420 | | | - Primary liquidity source is cash flows from operations, which decreased **$64.8 million to $883.6 million** in fiscal 2023 due to reduced sales and lower margins[215](index=215&type=chunk)[216](index=216&type=chunk) - The Company maintains an **$800 million revolving credit facility** (amended in 2023 to replace LIBOR with SOFR) with **$734.7 million unutilized availability** as of February 3, 2024[239](index=239&type=chunk)[240](index=240&type=chunk)[242](index=242&type=chunk) - As of February 3, 2024, Dillard's had **$321.5 million in long-term debt** (unsecured notes) and **$200 million in 7.5% subordinated debentures** outstanding[243](index=243&type=chunk)[245](index=245&type=chunk) - Dillard's has no special-purpose entities or off-balance-sheet arrangements for capital raising or debt, and no relationships that are reasonably likely to materially affect its financial condition or results[251](index=251&type=chunk) Commercial Commitments (February 3, 2024) | Other Commercial Commitments | Total Amounts Committed ($) | Within 1 year ($) | 2 - 3 years ($) | 4 - 5 years ($) | After 5 years ($) | |---|---|---|---|---|---| | $800 million line of credit, none outstanding (1) | $— | $— | $— | $— | $— | | Standby letters of credit | 19,333 | 19,033 | 300 | — | — | | Import letters of credit | — | — | — | — | — | | Total commercial commitments | $19,333 | $19,033 | $300 | $— | $— | - Dillard's adopted ASU No. 2022-04 (Supplier Finance Programs) in fiscal 2023, with confirmed obligations of **$1.6 million** as of February 3, 2024, and no material impact on financial statements. The Company is evaluating ASU No. 2023-07 (Segment Reporting) and ASU No. 2023-09 (Income Tax Disclosures), effective for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively[363](index=363&type=chunk)[366](index=366&type=chunk)[368](index=368&type=chunk)[370](index=370&type=chunk)[371](index=371&type=chunk) - Forward-looking statements are based on management estimates and are subject to risks and uncertainties, including general retail conditions, macroeconomic factors (inflation, interest rates), consumer behavior, competition, labor issues, tax and regulatory changes, supply chain disruptions, and global conflicts[254](index=254&type=chunk)[256](index=256&type=chunk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=65&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK.) Dillard's faces market risk from variable interest rates on its revolving credit facility, while long-term debt has fixed rates - Dillard's is exposed to market risk from changes in interest rates under its **$800 million revolving credit agreement**, which uses Adjusted Daily Simple SOFR[258](index=258&type=chunk) Long-Term Debt and Subordinated Debentures Maturities and Interest Rates (February 3, 2024) | (in thousands of dollars) | 2024 ($ thousands) | 2025 ($ thousands) | 2026 ($ thousands) | 2027 ($ thousands) | 2028 ($ thousands) | Thereafter ($ thousands) | Total ($ thousands) | Fair Value ($ thousands) | |---|---|---|---|---|---|---|---|---| | Long-term debt | $— | $— | $96,000 | $80,000 | $145,825 | $— | $321,825 | $339,394 | | Average fixed interest rate (%) | — | — | 7.8 | 7.8 | 7.0 | — | 7.4 | | | Subordinated debentures | $— | $— | $— | $— | $— | $200,000 | $200,000 | $205,440 | | Average interest rate (%) | — | — | — | — | — | 7.5 | 7.5 | | [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=65&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA.) The consolidated financial statements of Dillard's, Inc. and its subsidiaries, along with accompanying notes, are incorporated by reference and begin on page F-1 - The consolidated financial statements and notes are included in the report starting on page F-1[259](index=259&type=chunk) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE](index=67&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE.) There were no changes in or disagreements with accountants on accounting and financial disclosure for Dillard's - No changes in or disagreements with accountants on accounting and financial disclosure[261](index=261&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES](index=67&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES.) Dillard's management concluded that disclosure controls and internal control over financial reporting were effective as of February 3, 2024, with no material changes during the quarter - Dillard's disclosure controls and procedures were evaluated and deemed effective as of February 3, 2024[262](index=262&type=chunk) - Management concluded that Dillard's internal control over financial reporting was effective as of February 3, 2024, based on the 2013 COSO framework, and KPMG LLP audited and reported on its effectiveness[263](index=263&type=chunk)[264](index=264&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended February 3, 2024[265](index=265&type=chunk) [ITEM 9B. OTHER INFORMATION](index=67&type=section&id=ITEM%209B.%20OTHER%20INFORMATION.) During the three months ended February 3, 2024, none of Dillard's directors or officers adopted or terminated any Rule 10b5-1 or non-Rule 10b5-1 trading arrangements - No directors or officers adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the three months ended February 3, 2024[266](index=266&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS](index=67&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS.) This item is not applicable to Dillard's - Disclosure regarding foreign jurisdictions that prevent inspections is not applicable[267](index=267&type=chunk) PART III [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE](index=39&type=section&id=ITEM%2010.%20DIRECTORS%2C%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE.) Director and executive officer information is incorporated by reference, and the Board maintains a Code of Conduct for all personnel - Information on directors and executive officers is incorporated by reference from the Proxy Statement and Part I of this report[269](index=269&type=chunk)[270](index=270&type=chunk) - The Board has a Code of Conduct for all employees and Board members; waivers require Board approval and public disclosure[271](index=271&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION](index=39&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION.) Information regarding executive compensation for Dillard's is incorporated by reference from the Proxy Statement - Executive compensation information is incorporated by reference from the Proxy Statement[272](index=272&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS](index=40&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS.) Dillard's has 8.2 million securities available for future issuance under equity compensation plans, with further ownership details incorporated by reference Equity Compensation Plan Information (February 3, 2024) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted average exercise prices of outstanding options, warrants and rights (b) ($) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |---|---|---|---| | Equity compensation plans approved by stockholders* | — | $— | 8,212,875 | | Equity compensation plans not approved by stockholders | — | — | — | | Total | — | $— | 8,212,875 | [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE](index=40&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS%2C%20AND%20DIRECTOR%20INDEPENDENCE.) Information on certain relationships, related transactions, and director independence for Dillard's is incorporated by reference from the Proxy Statement - Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement[276](index=276&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES](index=40&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTANT%20FEES%20AND%20SERVICES.) Information regarding principal accountant fees and services for Dillard's is incorporated by reference from the Proxy Statement - Information on principal accountant fees and services is incorporated by reference from the Proxy Statement[277](index=277&type=chunk) PART IV [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES](index=41&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES.) This item provides an index of financial statements and identifies exhibits incorporated by reference or filed with the report - An 'Index of Financial Statements' is filed as part of this report beginning on page F-1[279](index=279&type=chunk) - The 'Exhibit Index' beginning on page 42 identifies exhibits incorporated by reference or filed with this report[280](index=280&type=chunk) [ITEM 16. FORM 10-K SUMMARY](index=44&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY.) This report does not contain a Form 10-K Summary - This report does not contain a Form 10-K Summary[286](index=286&type=chunk)

Have you been paying attention to shares of Dillard's (DDS) ? Shares have been on the move with the stock up 6.3% over the past month. The stock hit a new 52-week high of $459 in the previous session. Dillard's has gained 13% since the start of the year compared to the 10.8% move for the Zacks Retail-Wholesale sector and the 6% return for the Zacks Retail - Regional Department Stores industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed o ...

Dillard's (DDS) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Individual investors o ...