US' Dillard's FY24 sales reach $6.48 bn, comparable sales down 3%

The company reported earnings per share (EPS) of $36.82, down from $44.73 in the last fiscal. Retail gross margin declined to 41.0 per cent of sales, compared to 41.8 per cent. Operating expenses totalled $1,731.2 million, representing 26.7 per cent of sales, compared to $1,717.4 million or 25.4 per cent of sales. The increase in operating expenses is primarily due to increased payroll and payroll-related expenses, largely occurring in the first half of the year, Dillard’s said in a press release.

The cost of sales rose to 60.5 per cent of net sales, compared to 59.7 per cent in FY23. Selling, general and administrative (SG&A) expenses increased to 26.7 per cent of net sales totalling $1.73 billion. Depreciation and amortisation expenses remained stable at $177.9 million, while net interest income was $13.7 million, up from $4.6 million.

Income before income taxes fell to $729.7 million, down from $916.6 million in the prior year. Net income decreased to $593.5 million (9.2 per cent of net sales) from $738.8 million (10.9 per cent) in FY23. EPS dropped to $36.82, compared to $44.73 in FY23. The weighted average number of shares outstanding was 16.1 million, down from 16.5 million.

“With sales down 1 per cent, we worked on controlling expenses but lost some steam in gross margin,” said William T Dillard II, chief executive officer (CEO), Dillard’s.

Q4 financial performance

Dillard’s in the fourth quarter (Q4) reported net sales of $2.02 billion, compared to $2.12 billion. The cost of sales increased to 65.1 per cent of net sales, compared to 63.4 per cent in the prior fiscal. SG&A expenses remained at 22.4 per cent of net sales, with total expenses of $452.0 million, down from $476.7 million. Depreciation and amortisation costs were $41.3 million, slightly lower than $44.3 million in the prior year. The company recorded a net interest income of $1.8 million, compared to $3.1 million in the prior year.

Income before income taxes was $235.3 million, down from $282.5 million, with net income decreasing to $214.4 million (10.6 per cent of net sales) from $250.5 million (11.8 per cent). EPS fell to $13.48, compared to $15.44 in the last fiscal.

ALCHEMPro News Desk (SG)