Dillard's, Inc. Reports Fourth Quarter and Fiscal Year Results

Core Viewpoint - Dillard's, Inc. reported a decline in sales and net income for the fourth quarter and fiscal year 2024, indicating challenges in maintaining profitability amid rising operating expenses and a competitive retail environment [2][3][13]. Fourth Quarter Results - Net income for the 13 weeks ended February 1, 2025, was $214.4 million, or$ 13.48 per share, down from $250.5 million, or$ 15.44 per share, for the 14 weeks ended February 3, 2024 [3][8]. - Net sales for the fourth quarter were $2.017 billion, compared to$ 2.124 billion in the prior year, reflecting a decrease of approximately 5% [4][5]. - Total retail sales, excluding the construction business, decreased by 1% to $1.943 billion, with comparable store sales also down by 1% [5][8]. - Consolidated gross margin for the quarter was 34.9%, down from 36.6% in the previous year [6][8]. - Retail gross margin was 36.1%, compared to 37.7% in the prior year, with significant declines in home and furniture and ladies' apparel categories [7][8]. Fiscal Year Results - For the 52 weeks ended February 1, 2025, net income was$ 593.5 million, or $36.82 per share, down from$ 738.8 million, or $44.73 per share, for the 53 weeks ended February 3, 2024 [13][15]. - Net sales for the fiscal year were$ 6.483 billion, compared to $6.752 billion in the previous year, marking a decrease of 4% [14][15]. - Total retail sales for the fiscal year decreased by 2% to$ 6.219 billion, with comparable store sales down by 3% [15][17]. - Consolidated gross margin for the fiscal year was 39.5%, down from 40.3% in the previous year, while retail gross margin was 41.0%, compared to 41.8% [16][17]. Operating Expenses - Operating expenses for the fourth quarter were $452.0 million, representing 22.4% of sales, a decrease from$ 476.7 million (22.4% of sales) in the prior year [11][8]. - For the fiscal year, operating expenses increased to $1,731.2 million (26.7% of sales) from$ 1,717.4 million (25.4% of sales) in the previous year, primarily due to increased payroll and related expenses [17][19]. Share Repurchase and Inventory - During the fourth quarter, the company repurchased $14.0 million worth of Class A Common Stock, with approximately$ 273.0 million remaining under the share repurchase program [20]. - Ending inventory increased by 7% as of February 1, 2025, compared to the previous year [10][8]. Other Information - Dillard's operates 272 stores across 30 states, including 28 clearance centers, and has an online presence at dillards.com [21].