A surging fourth quarter of sales and a federal tax cut boosted Dillard’s end of the year and full year net income, and it produced momentum that company leaders hope to carry into 2018.
The Little Rock-based upscale retailer reported Tuesday (Feb. 27) that fourth quarter profits topped $157.6 million compared to $56.9 million one year ago. Total revenue for the quarter was $2.109 billion versus $1.984 million in the previous comparable quarter. Earnings per share was $5.55 compared to $1.72 in the previous year’s fourth quarter.
“The positive sales trends we noted at the end of the third quarter continued through the fourth. Our 3% comparable store sales increase combined with gross margin improvement and relative expense control led to a notable increase in pretax income for the quarter. We are working to keep this momentum into 2018,” Dillard’s Chief Executive Officer, William T. Dillard, II said.
For the full fiscal year, net sales were $6.262 billion, a slight improvement over the $6.257 billion posted a year ago.
Dillard’s reported net income for the 53 weeks ended February 3, 2018 of $221.3 million, or $7.51 per share, compared to net income of $169.2 million, or $4.93 per share, for the 52 weeks ended January 28, 2017.
Included in net income for the full-year reporting period ended February 3, 2018 is a pretax gain on disposal of assets of $4.9 million and $0.8 million loss on extinguishment of debt. Also included in net income for the fiscal year is an estimated tax benefit of approximately $77.4 million related to the Tax Cuts and Jobs Act of 2017.
During the year, Dillard’s purchased $219.0 million of Class A Common Stock under its share repurchase authorization.