Dillard's Q4 Earnings & Sales Miss Expectations, Decline Y/Y

Core Insights - Dillard's Inc. reported fourth-quarter fiscal 2024 results with both sales and earnings surpassing Zacks Consensus Estimates, despite a year-over-year decline in both metrics [1][2] - The challenging consumer landscape negatively impacted sales and comparable store sales [1] Financial Performance - Earnings per share (EPS) reached $13.48, exceeding the Zacks Consensus Estimate of $9.66, but down 12.7% from $15.44 in the same quarter last year [1] - Net sales totaled $2.017 billion, a decrease of 5.1% year over year, yet above the Zacks Consensus Estimate of $1.936 billion [2] - Total retail sales (excluding CDI Contractors, LLC) fell 5.5% year over year to $1.943 billion, with comparable store sales declining by 1% [4] Sales Breakdown - Strong sales were noted in the home and furniture, and cosmetics categories, while men's apparel and accessories, and shoes were the weakest categories [5] - The consolidated gross margin contracted by 170 basis points year over year to 34.9%, with retail gross margin at 36.1%, reflecting a decrease of 160 basis points [6] Operating Expenses - SG&A expenses as a percentage of sales remained flat at 22.4%, while in dollar terms, they decreased by 5.2% year over year to $452 million due to stringent expense control measures [7][9] Cash Flow and Capital Expenditure - Dillard's ended fiscal 2024 with cash and cash equivalents of $717.9 million and long-term debt of $321.6 million [10] - The company repurchased 36,000 shares for $14 million in the fourth quarter, with $273 million remaining under its current share repurchase authorization [11] Future Outlook - For fiscal 2025, Dillard's anticipates depreciation and amortization expenses of $180 million and projects net interest and debt income of $8 million [13]