US' Dillard's retail sales grow 8%, net income up 11% YTD in FY22

Included in net income for three quarters of FY22, is a pretax gain of $7.2 million ($5.6 million after tax or $0.32 per share) primarily related to the sale of a store property.

Net sales for the first three quarters ended October 29, 2022, and October 30, 2021, were $4.744 billion and $4.380 billion, respectively. The company’s YTD consolidated gross margin for FY22 was 44 per cent of sales, compared to 43 per cent of sales for the prior year’s 39-week period. Furthermore, retail gross margin (which excludes CDI) for first three quarters ended October 29, 2022, improved approximately 120 basis points of sales to 44.9 per cent, compared to 43.7 per cent for the prior year 39-week period. Inventory increased 8 per cent on October 29, 2022, compared to October 30, 2021.

Consolidated operating expenses for February to October 2022, were $1.216 billion (25.6 per cent of sales) compared to $1.096 billion (25 per cent of sales) for the prior year’s 39-week period. The increase of approximately $120 million is primarily due to continued increases in payroll and payroll-related expenses.

For the 13 weeks ended October 29, 2022, Dillard’s reported net income was $187.9 million, or $10.96 per share, compared to net income of $197.3 million, or $9.81 per share, for the 13 weeks ended October 30, 2021. Net sales for the 13 weeks ended October 29, 2022, and October 30, 2021, were $1.544 billion and $1.481 billion, respectively.

Total retail sales for the 13-week period ended October 29, 2022, and October 30, 2021, were $1.499 billion and $1.460 billion, respectively. Total retail sales increased 3 per cent for the 13-week period ended October 29, 2022. Sales in comparable stores increased 3 per cent. Stronger performing categories included men’s apparel and accessories, and shoes. Juniors’ and children’s apparel was the weakest performing category.

Consolidated gross margin for the 13 weeks ended October 29, 2022, was 44.6 per cent of sales compared to 46.2 per cent of sales for the prior year’s third quarter. Retail gross margin was 45.7 per cent compared to 46.7 per cent for the prior year’s third quarter. The company achieved gross margin exceeding 40 per cent for the seventh consecutive quarter.

Consolidated operating expenses for the 13 weeks ended October 29, 2022, were $413.8 million (26.8 per cent of sales) compared to $393.2 million (26.5 per cent of sales) for the prior year’s third quarter. Furthermore, retail operating expenses were $411.9 million (27.5 per cent of sales) compared to $391.5 million (26.8 per cent of sales) in the prior year’s third quarter.

During the third quarter of FY22, the company closed locations in Sikes Senter in Wichita Falls, Texas, and East Hills Mall in St. Joseph, Missouri. The company has opened its newly remodelled, replacement building at Westgate Mall in Amarillo, Texas. The building replaces a leased location at that centre where the company operates a dual-anchor format.

For the fiscal ending January 28, 2023, based on current conditions, the company expects depreciation and amortisation of $190 million, compared to $199 million in FY21. The capital expenditures are projected to be around $130 million for FY22, compared to $104 million in FY21, while the net interest and debt expense is estimated to be $32 million in FY22, compared to $43 million in FY21.

Fibre2Fashion News Desk (DP)