Dillard's Profit Surges

Helped by a big $64 million tax credit, and putting behind $55 million in charges that cut income a year ago, Dillard's pushed fourth-quarter profits up by 57.4%, to $155.0 million from $98.5 million last year.

Dillard's layered on a $6.6 million after-tax interest credit and reined in stockpiles.

Sales improved by 2.6%, to $2.4 billion from $2.3 billion during the Christmas quarter, but same-store sales fell by 4.0%.

Average gross margin contracted modestly, while costs edged higher. Margins thinned by 80 basis points, to 32.8% from 33.6%, solely because last year's quarter included a hurricane recovery gain. Excluding that one item, margins actually improved by 40 basis points. Operating costs rose by 50 basis points, or half a percentage point, due to extra costs associated with the extra week in this year's 14-week fiscal quarter. Inventory was reduced by 1.7%, even as sales climbed higher by 2.6%.

Dillard's Inc.

Qtr. 2/3 (x000) 2006 2005 % change
a. Fourth quarter results include an after-tax interest credit of $6.6 million; and an income tax benefit of $64.0 million. Prior-year results include a $55.3 pre-tax million asset impairment charge.
b. 12-month results include the $6.6 million after-tax interest credit; the $64.0 million tax credit; an $8.5 million after-tax gain on the sale of its interest in a mall; a $4.5 million after-tax gain form the Visa settlement; a $13.6 million charge stemming from litigation; a $5.8 million gain stemming from a change in a capital loss valuation allowance; and a $6.5 million gain due to the release of tax reserves. Prior-year results include a $61.7 million pre-tax impairment charge; a $29.7 million pre-tax hurricane recovery gain; and a $35.1 million tax benefit due to the sale of a subsidiary.
Sales $2,399,800 $2,338,200 2.6
Oper. Income (EBIT) 269,300 274,500 -1.9
Net income 155,000a 98,500a 57.4
Per share (diluted) 1.90 1.24 53.2
Average gross margin 32.8% 33.6%
SG&A expenses 24.1% 23.6%
12 months
Sales 7,646,500 7,560,200 1.1
Oper. Income (EBIT) 721,000 652,500 10.5
Net income 245,600b 121,500b 102.1
Per share (diluted) 3.05 1,49 104.7
Average gross margin 34.2% 33.7%
SG&A expenses 27.4% 27.0%


Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

Featured Video

  • Live From New York: Fashion Comes Across the Pond

    Camera Icon More Videos

Subscribe to
Home & Textiles Today eDaily
Receive the news you need to know about the trends in the industry delivered right to your inbox.

CURRENT ISSUE

HTT Cover October 2017

See the October 2017 issue of Home & Textiles Today. In this issue, we look at the Top 25 Online Retailers.  H&TT's exclusive annual ranking of the biggest online sellers of home textiles finds that while pure play etailers continue to fly, bricks & clicks are digging into omnichannel. See details!