Dillard’s came out ahead of Wall Street expectations despite lower comparable sales amid sluggish consumer demand.
Net income was $250.5 million, or $15.44 per diluted share, versus $289.2 million, or $16.89 per diluted share, in the year-earlier quarter.
Net income in the quarter included a federal income tax benefit of $21.1 million, or $1.30 per diluted share, due to a deduction related to that portion of the special dividend of $20 per share that was paid to the Dillard’s Investment and Employee Stock Ownership Plan during the quarter and a net $7.3 million, or 45 cents per diluted share, income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards. Included in net income for the year-past quarter was a pretax gain of $13.8 million, $10.8 million after tax, or 63 cents per diluted share, primarily related to the sale of two store properties, as well as a federal income tax benefit of $16.3 million, or 95 cents per diluted share, due to a deduction related to that portion of the special dividend of $15 per diluted share that was paid to the Dillard’s Investment and Employee Stock Ownership Plan during the period and a net $13.7 million, or 80 cents per diluted share, income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards
Dillard’s beat a Zacks Investment Research analyst consensus estimate of $11.59 per diluted share and $2.08 billion in revenue.
The fiscal 2023 quarter had an extra week versus the fiscal 2022 period. Comparable store sales decreased 5% for the 13-week to 13-week period, the company reported.
Net sales were $2.12 billion versus $2.13 billion in the year-before quarter. Sales decreased 5% on a 13-week to 13-week basis. Net revenue was $2.16 billion, basically flat compared to $2.16 billion in the year-previous quarter.
For the full fiscal year, net income was $738.8 million, or $44.73 per diluted share, versus $891.6 million, or $50.81 per diluted share, in the year earlier.
Net sales were $6.75 billion versus $6.87 billion in the year before. Net revenue was $6.87 billion versus $7 billion in the year previous.
In announcing the financial results, Dillard’s CEO William Dillard said, “Our fourth quarter results were respectable considering the continued weak consumer environment. We were pleased to pay a special dividend of $20 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.”
