Dillard's Profit Surges
By Staff -- Home Textiles Today, 3/12/2007 12:00:00 AM
Little Rock, Ark. —
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% | — |
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