Dillard’s net income slips, weaker consumer environment noted

Central ArkansasLatest NewsRetail

by Roby Brock ([email protected]) February 26, 2024 5:27 pm 398 views 

Dillard’s, Inc.’s fourth quarter and fiscal year profits were down, but the company’s CEO described the results as “respectable” due to a “weak consumer environment.”

On Monday (Feb. 26), Dillard’s reported fourth quarter net income of $250.5 million, or $15.44 per share, compared to $289.2 million, or $16.89 per share. Quarterly revenues were $2.159 billion, down from $2.163 billion a year ago.

For the full year, Dillard’s reported net income of $738.8 million, or $44.73 per share, versus $891.6 million, or $50.81 per share, for the prior year 52-week period. Full year revenue was $6.874 billion, down from $6.996 billion a year ago.

“Our fourth quarter results were respectable considering the continued weak consumer environment,” said Dillard’s Chief Executive Officer William T. Dillard, II. “We were pleased to pay a special dividend of $20.00 per share in January – bringing total shareholder return for the year to $621 million. We ended the year with $956 million in cash and short-term investments.”

Comp store sales, a key retail metric were down 5% during the fourth quarter and for the year. A number of one-time items benefitted the Little Rock-based retailer’s bottom line by nearly $30 million.

Other highlights for the year included:

  • Total retail sales decreased 5% for the 52-week to 52-week period;
  • Retail gross margin of 41.8% of sales compared to 43.0% of sales;
  • Operating expenses were $1,717.4 million (25.4% of sales) compared to $1,674.3 million (24.4% of sales); and
  • Share repurchases of $281.4 million (approximately 917,700 shares).

The company said it will open its Empire Mall location in Sioux Falls, South Dakota in March of 2024 marking its 30th state of operation. Dillard’s operates 273 Dillard’s stores, including 28 clearance centers, and an online store at dillards.com.

Dillard’s shares (NYSE: DDS) closed trading Monday at $433.63, up $3.30 from the previous close. The company’s share price has fluctuated between $272.58 and $437.01 in the past 52 weeks.