DILLARDS INC
For the period ended Nov 2, 2024. Filed Dec 6, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Nov 2, 2024 · Filed Dec 6, 2024
DDS$602.38-3.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-08-03; filed 2024-09-06.
0000028917-24-000026
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-11-02; filed 2024-12-06.
0000028917-24-000030
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 86 previous paragraphs and 93 current paragraphs.
39 unchanged; 42 reworded; 8 added; 4 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (8)
Current report
While retail sales declined during our third quarter compared to the prior year third quarter, the Company focused on gross margin performance. The Company also focused on expense control during the quarter following its reports of increased selling, general and administrative (“SG&A”) expenses during the first half of the year.
Current report
Compared to the prior year third quarter, total retail sales (which exclude construction sales) declined 4% while retail gross margin was 44.5% of sales compared to 45.3%. Inventory increased 3% at November 2, 2024 compared to October 28, 2023.
Current report
During the three months ended November 2, 2024 compared to the three months ended October 28, 2023, payroll and payroll-related expenses were $298.5 million and $296.7 million, increasing $1.8 million. During those periods, payroll expense decreased $0.1 million while payroll-related expenses increased $1.9 million, primarily from increased insurance benefit expense.
Current report
During the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, payroll and payroll-related expenses were $905.0 million and $869.9 million, increasing $35.1 million.
Current report
The Company plans to continue its focus of aligning expenses with sales performance.
Current report
Net cash flows from operations decreased $97.7 million during the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023. This decrease was primarily due to lower sales.
Current report
During the nine months ended October 28, 2023, the Company received proceeds from insurance of $4.5 million primarily from life insurance proceeds related to two policies.
Current report
On November 21, 2024, the Company announced that its Board of Directors declared a special dividend of $25.00 per share. The dividend is payable on the Class A Common Stock and Class B Common Stock of the Company on January 6, 2025 to stockholders of record as of December 13, 2024. The Company expects to fund the dividend from cash flows from operations.
Removed paragraphs (4)
Previous report
The Company noted a weak performance during the three months ended August 3, 2024. Management attributed the disappointing results to a continued challenging consumer environment as well as increased expenses which, combined, negatively impacted sales and profitability. Compared to the prior year second quarter, total retail sales (which exclude construction sales) declined 5% while retail gross margin declined from 40.4% of sales to 39.1% of sales. Inventory was essentially unchanged at August 3, 2024 compared to the prior year second quarter.
Previous report
Storewide sales penetration of exclusive brand merchandise for the six months ended August 3, 2024 and July 29, 2023 was 23.4% and 24.4%, respectively.
Previous report
The dollar increase in operating expenses in both the three and six-month periods is primarily due to increased payroll expense. Payroll and payroll-related expenses for the three months ended August 3, 2024 were $304.3 million compared to $290.8 million for the three months ended July 29, 2023, increasing $13.5 million. Payroll and payroll-related expenses for the six months ended August 3, 2024 were $606.5 million compared to $573.1 million for the six months ended July 29, 2023, increasing $33.4 million. The Company is working to better align expenses with sales performance.
Previous report
Net cash flows from operations decreased $221.9 million during the six months ended August 3, 2024 compared to the six months ended July 29, 2023. This decrease was driven by changes in income taxes payable, decreases in gross margin and increases in SG&A costs. The decrease in cash flow from changes in income taxes payable was primarily due to the Internal Revenue Service’s postponement of certain tax-filing and tax-payment deadlines at the end of the second quarter of fiscal 2023 for taxpayers affected by severe storms and tornadoes occurring in certain counties in Arkansas in early 2023.
Reworded paragraphs (42)
Previous wording
Selling, general and administrative (“SG&A”) expenses for the three months ended August 3, 2024 increased to $433.7 million (29.1% of sales) from $412.5 million (26.3% of sales) for the prior year second quarter. The increase of $21.2 million was primarily due to increased payroll expenses.
Current wording
SG&A expenses for the three months ended November 2, 2024 declined $2.9 million to $418.9 million (29.4% of sales) from $421.8 million (28.6% of sales) for the prior year third quarter.
Previous wording
For the three months ended August 3, 2024, the Company reported net income of $74.5 million ($4.59 per share) compared to net income of $131.5 million ($7.98 per share) for the three months ended July 29, 2023.
Current wording
For the three months ended November 2, 2024, the Company reported net income of $124.6 million ($7.73 per share) compared to net income of $155.3 million ($9.49 per share) for the three months ended October 28, 2023.
Previous wording
Net cash provided by operating activities was $176.0 million for the six months ended August 3, 2024 compared to $397.9 million for the prior year six-month period.
Current wording
Net cash provided by operating activities was $349.4 million for the nine months ended November 2, 2024 compared to $447.1 million for the prior year nine-month period.
Previous wording
As of August 3, 2024, the Company had working capital of $1,673.2 million (including cash and cash equivalents of $946.7 million and short-term investments of $123.8 million) and $521.5 million of total debt outstanding, including $321.5 million of long-term debt and $200.0 million of subordinated debentures.
Current wording
As of November 2, 2024, the Company had working capital of $1,705.6 million (including cash and cash equivalents of $980.4 million and short-term investments of $128.9 million) and $521.5 million of total debt outstanding, including $321.5 million of long-term debt and $200.0 million of subordinated debentures.
Previous wording
Cash flow from operations data is for the six months ended August 3, 2024 and July 29, 2023.
Current wording
Cash flow from operations data is for the nine months ended November 2, 2024 and October 28, 2023.
Previous wording
**Service charges and other income.**Service charges and other income includes income generated through the marketing and servicing alliance with Wells Fargo Bank, N.A. (“Wells Fargo Alliance”). Other income includes rental income, shipping and handling fees and gift card breakage.
Current wording
**Service charges and other income.**Service charges and other income includes income generated through the Company’s private label credit card portfolio alliances. These alliances include the former marketing and servicing alliance with Wells Fargo Bank, N.A. (“Wells Fargo Alliance”), which terminated in September 2024, and the Company’s new long-term marketing and servicing alliance with Citibank, N.A (“Citibank Alliance”), which replaced the Wells Fargo Alliance upon its termination. Other income includes rental income, shipping and handling fees and gift card breakage.
Previous wording
Net sales from the retail operations segment decreased $72.1 million, or approximately 5%, and sales in comparable stores decreased approximately 5% during the three months ended August 3, 2024 compared to the three months ended July 29, 2023. Sales in men’s apparel and accessories, shoes and ladies’ apparel decreased significantly, while sales in juniors’ and children’s apparel and ladies’ accessories and lingerie decreased moderately. Sales in home and furniture increased slightly, while sales in cosmetics increased moderately.
Current wording
Net sales from the retail operations segment decreased $53.2 million, or approximately 4%, and sales in comparable stores decreased approximately 4% during the three months ended November 2, 2024 compared to the three months ended October 28, 2023. Sales in juniors’ and children’s apparel and men’s apparel and accessories decreased significantly, while sales in shoes, ladies’ apparel and ladies’ accessories and lingerie decreased moderately. Sales in home and furniture decreased slightly. Sales in cosmetics increased moderately.
Previous wording
The number of sales transactions decreased 8% for the three months ended August 3, 2024 compared to the three months ended July 29, 2023, while the average dollars per sales transaction increased 3%.
Current wording
The number of sales transactions decreased 7% for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, while the average dollars per sales transaction increased 3%.
Previous wording
We recorded a return asset of $11.5 million and $11.4 million and an allowance for sales returns of $20.1 million and $20.3 million as of August 3, 2024 and July 29, 2023, respectively.
Current wording
We recorded a return asset of $10.5 million and $11.5 million and an allowance for sales returns of $20.2 million and $22.6 million as of November 2, 2024 and October 28, 2023, respectively.
Previous wording
During the three months ended August 3, 2024, net sales from the construction segment decreased $5.3 million, or approximately 8%, compared to the three months ended July 29, 2023 due to a decrease in construction activity. The remaining performance obligations related to executed construction contracts totaled $234.0 million as of August 3, 2024, increasing approximately 43% from February 3, 2024 and increasing approximately 11% from July 29, 2023, respectively. We expect these remaining performance obligations to be satisfied over the next nine to eighteen months.
Current wording
During the three months ended November 2, 2024, net sales from the construction segment increased $3.9 million, or approximately 6%, compared to the three months ended October 28, 2023 due to an increase in construction activity. The remaining performance obligations related to executed construction contracts totaled $248.8 million as of November 2, 2024, increasing approximately 52% from February 3, 2024 and increasing approximately 13% from October 28, 2023, respectively. We expect these remaining performance obligations to be satisfied over the next nine to eighteen months.
Previous wording
The percent change by segment and product category in the Company’s sales for the six months ended August 3, 2024 compared to the six months ended July 29, 2023 as well as the sales percentage by segment and product category to total net sales for the six months ended August 3, 2024 are as follows:
Current wording
The percent change by segment and product category in the Company’s sales for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023 as well as the sales percentage by segment and product category to total net sales for the nine months ended November 2, 2024 are as follows:
Previous wording
Net sales from the retail operations segment decreased $94.4 million, or approximately 3%, and sales in comparable stores decreased approximately 3% during the six months ended August 3, 2024 compared to the six months ended July 29, 2023. Sales in men’s apparel and accessories and shoes decreased significantly, while sales in juniors’ and children’s apparel, ladies’ apparel and ladies’ accessories and lingerie decreased moderately. Sales in home and furniture remained essentially flat. Sales in cosmetics increased moderately.
Current wording
Net sales from the retail operations segment decreased $147.6 million, or approximately 3%, and sales in comparable stores decreased approximately 4% during the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023. Sales in men’s apparel and accessories, juniors’ and children’s apparel and shoes decreased significantly, while sales in ladies’ apparel and ladies’ accessories and lingerie decreased moderately. Sales in home and furniture remained essentially flat. Sales in cosmetics increased moderately.
Previous wording
The number of sales transactions decreased 7% for the six months ended August 3, 2024 compared to the six months ended July 29, 2023, while the average dollars per sales transaction increased 4%.
Current wording
The number of sales transactions decreased 7% for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, while the average dollars per sales transaction increased 3%.
Previous wording
During the six months ended August 3, 2024, net sales from the construction segment decreased $17.9 million, or approximately 13%, compared to the six months ended July 29, 2023 due to a decrease in construction activity.
Current wording
During the nine months ended November 2, 2024, net sales from the construction segment decreased $14.1 million, or approximately 7%, compared to the nine months ended October 28, 2023 due to a decrease in construction activity.
Previous wording
Service charges and other income is composed primarily of income from the Wells Fargo Alliance. Income from the alliance decreased $4.5 million and $9.8 million for the three and six months ended August 3, 2024 compared to July 29, 2023, respectively, partially due to increases in credit losses and decreases in finance charge income due to lower receivable balances.
Current wording
Service charges and other income is composed primarily of income from the Citibank Alliance and former Wells Fargo Alliance. Income from the alliances decreased $3.5 million for the three months ended November 2, 2024 compared to the three months ended October 28, 2023, primarily from increases in credit losses and decreases in finance charge income. Income from the alliances decreased $13.3 million for the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, primarily from increases in credit losses and decreases in finance charge income and late fees.
Previous wording
In January 2024, the Company announced that it entered into a new agreement with Citibank, N.A. (“Citi”) to provide a credit card program for Dillard’s customers, replacing the existing Wells Fargo Alliance. While future cash flows under this new program are difficult to predict, the Company expects income from the new program to initially be less than historical earnings from the Wells Fargo Alliance. The extent to which future cash flows will vary over the term of the new program from historical cash flows cannot be reasonably estimated at this time.
Current wording
While future cash flows under the Citibank Alliance are difficult to predict, the Company expects income from this new alliance to initially be less than historical earnings from the Wells Fargo Alliance. The extent to which future cash flows will vary over the term of the new program from historical cash flows cannot be reasonably estimated at this time.
Previous wording
Gross margin, as a percentage of sales, decreased to 37.6% from 38.8% during the three months ended August 3, 2024 compared to the three months ended July 29, 2023, respectively.
Current wording
Gross margin, as a percentage of sales, decreased to 42.6% from 43.5% during the three months ended November 2, 2024 compared to the three months ended October 28, 2023, respectively.
Previous wording
Gross margin from retail operations, as a percentage of sales, decreased to 39.1% from 40.4% during the three months ended August 3, 2024 compared to the three months ended July 29, 2023, respectively. Gross margin decreased moderately in ladies’ apparel, home and furniture, ladies’ accessories and lingerie and shoes, while decreasing slightly in juniors’ and children’s apparel and cosmetics. Gross margin remained essentially flat in men’s apparel and accessories.
Current wording
Gross margin from retail operations, as a percentage of sales, decreased to 44.5% from 45.3% during the three months ended November 2, 2024 compared to the three months ended October 28, 2023, respectively, primarily as a result of increased markdowns. Gross margin decreased moderately in home and furniture and ladies’ apparel, while gross margin decreased slightly in juniors’ and children’s apparel and shoes. Gross margin remained essentially flat in cosmetics and men’s apparel and accessories. Gross margin increased slightly in ladies’ accessories and lingerie.
Previous wording
Gross margin, as a percentage of sales, decreased to 41.2% from 41.3% during the six months ended August 3, 2024 compared to the six months ended July 29, 2023, respectively.
Current wording
Gross margin, as a percentage of sales, decreased to 41.6% from 42.0% during the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, respectively.
Previous wording
Gross margin from retail operations, as a percentage of sales, decreased to 42.7% from 43.0% during the six months ended August 3, 2024 compared to the sixmonths ended July 29, 2023, respectively. Gross margin decreased slightly in ladies’ apparel, shoes and cosmetics. Gross margin remained essentially flat in all other product categories.
Current wording
Gross margin from retail operations, as a percentage of sales, decreased to 43.3% from 43.7% during the nine months ended November 2, 2024 compared to the nine months ended October 28, 2023, respectively. Gross margin decreased moderately in home and furniture, while gross margin decreased slightly in ladies’ apparel and shoes. Gross margin remained essentially flat in all other product categories.
Previous wording
Total inventory was essentially flat at August 3, 2024 compared to July 29, 2023. A 1% change in the dollar amount of markdowns would have impacted net income by approximately $2 million and $3 million for the three and six months ended August 3, 2024, respectively.
Current wording
Total inventory increased 3% at November 2, 2024 compared to October 28, 2023. A 1% change in the dollar amount of markdowns would have impacted net income by approximately $1 million and $4 million for the three and nine months ended November 2, 2024, respectively.
Previous wording
Inflation and higher interest costs continue to be a concern for management. The extent to which our business will be affected by inflation and higher interest costs depends on our customers’ continuing ability and willingness to accept higher prices.
Current wording
Inflation, trade restrictions, including tariffs, and higher interest rates are a concern for management. The extent to which our business will be affected by these factors depends on our customers’ continuing ability and willingness to accept higher costs.
Previous wording
SG&A increased to 28.3% of sales during the six months ended August 3, 2024 from 26.0% of sales during the six months ended July 29, 2023, an increase of $41.4 million. SG&A from retail operations increased to 29.3% of sales for the six months ended August 3, 2024 from 27.0% of sales for the six months ended July 29, 2023, an increase of $40.0 million.
Current wording
SG&A increased to 29.4% of sales during the three months ended November 2, 2024 from 28.6% of sales during the three months ended October 28, 2023, while decreasing $2.9 million. SG&A from retail operations increased to 30.7% of sales for the three months ended November 2, 2024 from 29.8% of sales for the three months ended October 28, 2023, while decreasing $2.8 million.
Previous wording
SG&A increased to 29.1% of sales during the three months ended August 3, 2024 from 26.3% of sales during the three months ended July 29, 2023, an increase of $21.1 million. SG&A from retail operations increased to 30.2% of sales for the three months ended August 3, 2024 from 27.4% of sales for the three months ended July 29, 2023, an increase of $20.3 million.
Current wording
SG&A increased to 28.6% of sales during the nine months ended November 2, 2024 from 26.8% of sales during the nine months ended October 28, 2023, an increase of $38.5 million. SG&A from retail operations increased to 29.7% of sales for the nine months ended November 2, 2024 from 27.9% of sales for the nine months ended October 28, 2023, an increase of $37.2 million.
Previous wording
Net interest and debt (income) expense improved $4.1 million and $7.7 million during the three and six months ended August 3, 2024 compared to the three and six months ended July 29, 2023, primarily due to an increase in interest income. Interest income was $13.7 million and $10.0 million for the three months ended August 3, 2024 and July 29, 2023, respectively, and interest income was $27.3 million and $20.0 million for the six months ended August 3, 2024 and July 29, 2023, respectively.
Current wording
Net interest and debt (income) expense improved $2.7 million and $10.4 million during the three and nine months ended November 2, 2024 compared to the three and nine months ended October 28, 2023, respectively, primarily due to an increase in interest income. Interest income was $14.1 million and $11.7 million for the three months ended November 2, 2024 and October 28, 2023, respectively, and interest income was $41.4 million and $31.7 million for the nine months ended November 2, 2024 and October 28, 2023, respectively.
Previous wording
Other expense increased $1.5 million and $2.9 million during the three and six months ended August 3, 2024 compared to the three and six months ended July 29, 2023 due to an increase in the interest cost and the amortization of the net actuarial loss related to the Company’s Pension Plan.
Current wording
Other expense increased $1.5 million and $4.4 million during the three and nine months ended November 2, 2024 compared to the three and nine months ended October 28, 2023 due to an increase in the interest cost and the amortization of the net actuarial loss related to the Company’s Pension Plan.
Previous wording
During the six months ended July 29, 2023, the Company recorded proceeds of $2.2 million primarily from the sale of one store property, resulting in a gain of $2.0 million that was recorded in gain on disposal of assets.
Current wording
During the three months ended October 28, 2023, the Company recorded proceeds of $4.1 million primarily from the sale of a store property, resulting in a gain of $4.1 million that was recorded in gain on disposal of assets. During the nine months ended October 28, 2023, the Company recorded proceeds of $6.3 million primarily from the sale of two store properties, resulting in a gain of $6.0 million that was recorded in gain on disposal of assets.
Previous wording
The Company’s estimated federal and state effective income tax rate was approximately 23.3% and 23.4% for the three and six months ended August 3, 2024 and July 29, 2023, respectively. During the three and six months ended August 3, 2024 and July 29, 2023, income tax expense differed from what would be computed using the statutory federal income tax rate primarily due to the effects of state and local income taxes.
Current wording
The Company’s estimated federal and state effective income tax rate was approximately 23.3% and 22.1% for the three months ended November 2, 2024 and October 28, 2023, respectively. The Company’s estimated federal and state effective income tax rate was approximately 23.3% and 23.0% for the nine months ended November 2, 2024 and October 28, 2023, respectively. During the three and nine months ended November 2, 2024 and October 28, 2023, income tax expense differed from what would be computed using the statutory federal income tax rate primarily due to the effects of state and local income taxes.
Previous wording
The Company expects the fiscal 2024 federal and state effective income tax rate to approximate 23%. This rate may change if results of operations for fiscal 2024 differ from management’s current expectations. Changes in the Company’s assumptions and judgments can materially affect amounts recognized in the condensed consolidated financial statements.
Current wording
The Company expects the fiscal 2024 federal and state effective income tax rate to approximate 19%. This rate includes expected federal and state income tax benefits due to a deduction related to that portion of the special dividend of $25.00 per share to be paid to the Dillard’s, Inc. Investment and Employee Stock Ownership Plan. This rate may change if results of operations for fiscal 2024 differ from management’s current expectations. Changes in the Company’s assumptions and judgments can materially affect amounts recognized in the condensed consolidated financial statements.
Previous wording
A summary of net cash flows for the six months ended August 3, 2024 and July 29, 2023 follows:
Current wording
A summary of net cash flows for the nine months ended November 2, 2024 and October 28, 2023 follows:
Previous wording
In January 2024, the Company announced that it entered into a new agreement with Citi to provide a credit card program for Dillard’s customers, replacing the existing Wells Fargo Alliance. The Dillard’s credit card program offered by Citi will include a new co-branded Mastercard as well as a private label credit card. The new co-branded Mastercard will replace the existing co-branded card. Additionally, Citi will provide customer service functions and support certain Dillard’s marketing and loyalty program activities related to the new program. The companies launched the new program on August 19, 2024 for new Dillard’s credit applicants. The transfer of existing accounts to Citi is expected in the fall of 2024. The term of the new Citi agreement is 10 years with automatic extensions for successive two-year terms unless the agreement is terminated by a party in accordance with the terms and conditions of the agreement.
Current wording
terminated in September 2024. The Dillard’s credit card program offered by Citi includes a new co-branded Mastercard as well as a private label credit card. The new co-branded Mastercard replaced the previous co-branded card. Additionally, Citi provides customer service functions and supports certain Dillard’s marketing and loyalty program activities related to the new program. The new program launched on August 19, 2024 for new Dillard’s credit applicants. Existing accounts transferred from Wells Fargo to Citi on September 16, 2024. The term of the new Citi agreement is 10 years with automatic extensions for successive two-year terms unless the agreement is terminated by a party in accordance with the terms and conditions of the agreement.
Previous wording
Wells Fargo owns and manages the Dillard’s private label cards under the Wells Fargo Alliance. The Company recognized income of $24.4 million and $34.1 million from the Wells Fargo Alliance during the six months ended August 3, 2024 and July 29, 2023, respectively.
Current wording
The Company recognized income of $37.6 million and $50.9 million during the nine months ended November 2, 2024 and October 28, 2023, respectively, from the former Wells Fargo Alliance and the Citibank Alliance.
Previous wording
Pursuant to the Wells Fargo Alliance, we receive on-going cash compensation from Wells Fargo based upon the portfolio’s earnings. The compensation received from the portfolio is determined monthly and has no recourse provisions. The amount the Company receives is dependent on the level of sales on Wells Fargo accounts, the level of balances carried on Wells Fargo accounts by Wells Fargo customers, payment rates on Wells Fargo accounts, finance charge rates and other fees on Wells Fargo accounts, the level of credit losses for the Wells Fargo accounts as well as Wells Fargo’s ability to extend credit to our customers. We participate in the marketing of the private label cards, which includes the cost of customer reward programs.
Current wording
Pursuant to the Citibank Alliance, we receive on-going cash compensation from Citi based upon the portfolio’s
Previous wording
While future cash flows under the new program are difficult to predict, the Company expects income from the new program to initially be less than historical earnings from the Wells Fargo Alliance. The extent to which future cash flows will vary over the term of the new program from historical cash flows cannot be reasonably estimated at this time. The income and cash flow that the Company will receive from the new program with Citi will depend on the same factors that impact the Wells Fargo Alliance as discussed above. Any material decrease could adversely affect our operating results and cash flows.
Current wording
While future cash flows under the new program are difficult to predict, the Company expects cash flows from the new program to initially be less than historical cash flows from the Wells Fargo Alliance. The extent to which future cash flows will vary over the term of the new program from historical cash flows cannot be reasonably estimated at this time. Any material decrease could adversely affect our operating results and cash flows.
Previous wording
Capital expenditures were $61.1 million and $63.8 million for the six months ended August 3, 2024 and July 29, 2023, respectively. The capital expenditures were primarily related to equipment purchases, the continued construction of new stores and the remodeling of existing stores. During the six months ended August 3, 2024, the Company opened a new location at The Empire Mall in Sioux Falls, South Dakota (140,000 square feet) marking its 30 th state of operation. During the six months ended July 29, 2023, the Company opened a 100,000 square foot expansion at Gateway Mall in Lincoln, Nebraska.
Current wording
Capital expenditures were $89.1 million and $104.7 million for the nine months ended November 2, 2024 and October 28, 2023, respectively. The capital expenditures were primarily related to equipment purchases, the continued construction of new stores and the remodeling of existing stores. During the nine months ended November 2, 2024, the Company opened a new location at The Empire Mall in Sioux Falls, South Dakota (140,000 square feet) marking its 30 th state of operation. During the nine months ended October 28, 2023, the Company opened a 100,000 square foot expansion at Gateway Mall in Lincoln, Nebraska.
Previous wording
During the six months ended August 3, 2024, the Company closed its Eastwood Mall Clearance Center in Niles, Ohio (120,000 square feet). There were no material costs associated with this store closure. We remain committed to closing under-performing stores where appropriate and may incur future closing costs related to such stores when they close.
Current wording
During the nine months ended November 2, 2024, the Company closed its Eastwood Mall Clearance Center in Niles, Ohio (120,000 square feet). The Company has also announced the upcoming closure of its leased facility at Stones River Town Centre in Murfreesboro, Tennessee (145,000 square feet). The store is expected to close in January 2025. There were no material costs associated or expected with any of these store closures. We remain committed to closing under-performing stores where appropriate and may incur future closing costs related to such stores when they close.
Previous wording
During the six months ended July 29, 2023, the Company received cash proceeds of $2.2 million and recorded a related gain of $2.0 million, primarily from the sale of one store property.
Current wording
During the nine months ended October 28, 2023, the Company received cash proceeds of $6.3 million and recorded a related gain of $6.0 million, primarily from the sale of two store properties.
Previous wording
During the six months ended August 3, 2024 and July 29, 2023, the Company purchased certain treasury bills for $319.5 million and $148.1 million, respectively, that are classified as short-term investments. During the six months ended August 3, 2024 and July 29, 2023, the Company received proceeds of $350.9 million and $150.0 million, respectively, related to maturities of these short-term investments.
Current wording
During the nine months ended November 2, 2024 and October 28, 2023, the Company purchased certain treasury bills for $422.4 million and $148.1 million, respectively, that are classified as short-term investments. During the nine months ended November 2, 2024 and October 28, 2023, the Company received proceeds of $450.9 million and $250.0 million, respectively, related to maturities of these short-term investments.
Previous wording
The Company had cash and cash equivalents of $946.7 million as of August 3, 2024. The Company maintains a credit facility (“credit agreement”) for general corporate purposes including, among other uses, working capital financing, the issuance of letters of credit, capital expenditures and, subject to certain restrictions, the repayment of existing indebtedness and share repurchases. The credit agreement is secured by certain deposit accounts of the Company and certain inventory of certain subsidiaries and provides a borrowing capacity of $800 million, subject to certain limitations as outlined in the credit agreement, with a $200 million expansion option. See Note 7,Revolving Credit Agreement, in the “Notes to Condensed Consolidated Financial Statements,” in Part I, Item 1 hereof for additional information. At August 3, 2024, no borrowings were outstanding, and letters of credit totaling $25.3 million were issued under the credit agreement leaving unutilized availability of $774.7 million.
Current wording
The Company had cash and cash equivalents of $980.4 million as of November 2, 2024. The Company maintains a credit facility (“credit agreement”) for general corporate purposes including, among other uses, working capital financing, the issuance of letters of credit, capital expenditures and, subject to certain restrictions, the repayment of existing indebtedness and share repurchases. The credit agreement is secured by certain deposit accounts of the Company and certain inventory of certain subsidiaries and provides a borrowing capacity of $800 million, subject to certain limitations as outlined in the credit agreement, with a $200 million expansion option. See Note 7,Revolving Credit Agreement, in the “Notes to Condensed Consolidated Financial Statements,” in Part I, Item 1 hereof for additional
Previous wording
During the six months ended August 3, 2024, no share repurchases were made under the Company’s stock repurchase plan. During the six months ended July 29, 2023, the Company repurchased 0.7 million shares of Class A Common Stock at an average price of $303.98 per share for $217.3 million under the Company’s stock repurchase plans. As of August 3, 2024, $394.0 million of authorization remained under the Company’s open stock repurchase plan. The ultimate disposition of the repurchased stock has not been determined. See Note 8,Stock Repurchase Programs, in the “Notes to Condensed Consolidated Financial Statements,” in Part I, Item 1 hereof for additional information.
Current wording
During the nine months ended November 2, 2024, the Company repurchased 0.3 million shares of Class A Common Stock at an average price of $364.43 per share for $107.0 million (including the accrual of $2.0 million of share repurchases that had not settled as of November 2, 2024) under the Company’s stock repurchase plan. During the nine months ended October 28, 2023, the Company repurchased 0.9 million shares of Class A Common Stock at an average price of $306.41 per share for $265.2 million (including the accrual of $2.0 million of share repurchases that had not settled as of October 28, 2023) under its stock repurchase plans. As of November 2, 2024, $287.0 million of authorization remained under the Company’s open stock repurchase plan. The ultimate disposition of the repurchased stock has not been determined. See Note 8,Stock Repurchase Programs, in the “Notes to Condensed Consolidated Financial Statements,” in Part I, Item 1 hereof for additional information.
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Current report — wording carried from elsewhere
In January 2024, the Company announced that it entered into a new agreement with Citibank, N.A. (“Citi”) to provide a credit card program for Dillard’s customers under the Citibank Alliance, replacing the existing Wells Fargo Alliance. Wells Fargo owned and managed the Dillard’s private label cards under the Wells Fargo Alliance, which
Current report — wording carried from elsewhere
earnings. The compensation received from the portfolio is determined monthly and has no recourse provisions. The amount the Company receives is dependent on the level of sales on Citi accounts, the level of balances carried on Citi
Current report — wording carried from elsewhere
accounts by Citi customers, payment rates on Citi accounts, finance charge rates and other fees on Citi accounts, the level of credit losses for the Citi accounts as well as Citi’s ability to extend credit to our customers. We participate in the marketing of the private label cards, which includes the cost of customer reward programs.
Current report — wording carried from elsewhere
information. At November 2, 2024, no borrowings were outstanding, and letters of credit totaling $25.3 million were issued under the credit agreement leaving unutilized availability of $774.7 million.
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Previous report — wording carried elsewhere
This report contains certain forward-looking statements. The following are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995: (a) statements including words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “future,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “continue,” or the negative or other variations thereof; (b) statements regarding matters that are not historical