Dillard’s posts $250.5M profit in 4Q

Dillard’s Inc. said Monday that a challenging sales environment resulted in slightly lower net sales and profit in the fourth quarter.

Reporting after the markets closed, the Little Rockbased department store chain posted net income of $250.5 million, or $15.44 per share, for the quarter that ended on Feb. 3 and includes the Christmas shopping season. In the same quarter a year ago, which ended on Jan. 28, Dillard’s earned $289.2 million, or $16.89 per share.

The results beat analysts’ average estimate of $12.34 per share.

Dillard’s net income for the quarter included two income tax-related benefits totalling $28.4 million.

Net sales dipped 0.5% to $2.12 billion. Dillard’s net sales include operations of the company’s construction business, CDI Contractors LLC, as well as merchandise sales.

Cosmetics was the strongest performing merchandise category during the quarter, followed by home and furniture. Junior and children’s apparel was the weakest category, followed by ladies’ accessories and lingerie, and ladies apparel.

Dillard’s same-store sales, or sales at stores open at least one year, fell 5% from last year’s fourth quarter. Same-store sales are considered a key indicator of a retailer’s health.

Dillard’s shares rose $3.30, or 0.77%, on Monday to close at $433.63 on the New York Stock Exchange. The company’s shares have traded as low as $272.58 in the past year and set a new high of $436.96 in mid-day trading Monday.

William Dillard II, Dillard’s chief executive officer, called the fourth-quarter results “respectable, considering the continued weak consumer environment.”

The company paid a special dividend of $20 per share in January, Dillard said.

The retailer returned $621 million to its shareholders in

2023, Dillard said, while still ending the year with $956 million in cash and shortterm investments.

For the year, Dillard’s reported net income of $738.8 million, or $44.73 per share, compared to net income of $891.6 million, or $50.81 per share, in the prior year.

Dillard’s net sales slipped 1.8% to $6.75 billion.

The company bought back about 917,700 shares of Class A common stock during the year at an average price of $306.66 per share, for a total of $281.4 million.

Dillard’s reported $133 million in capital expenditures during 2023, and said it estimates $125 million in capital expenditures in 2024.

Dillard’s operates 245 department stores and 28 clearance centers, as well as its e-commerce business.

The company plans to open a store in March in Sioux Falls, S.D., marking its expansion into 30 states.