XML 24 R12.htm IDEA: XBRL DOCUMENT v3.23.3
Business Segments
 9 Months Ended
Oct. 28, 2023
Segment Reporting [Abstract]  
Business Segments

Note 3. Business Segments

The Company operates in two reportable segments: the operation of retail department stores (“retail operations”) and a general contracting construction company (“construction”).

For the Company’s retail operations segment, the Company determined its operating segments on a store by store basis. Each store’s operating performance has been aggregated into one reportable segment for financial reporting purposes because stores are similar in each of the following areas: economic characteristics, class of consumer, nature of products and distribution methods. Revenues from external customers are derived from merchandise sales, and the Company does not rely on any major customers as a source of revenue. Across all stores, the Company operates one store format under the Dillard’s name where each store offers the same general mix of merchandise with similar categories and similar customers. The Company believes that disaggregating its retail operations segment would not provide meaningful additional information.

The following table summarizes the percentage of net sales by segment and major product line:

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

​

​

​

October 28,

​

October 29,

​

October 28,

​

October 29,

​

​

​

2023

    

2022

​

2023

    

2022

 

Retail operations segment:

​

  

​

  

​

  

​

  

 

Cosmetics

 

14

%  

14

%

14

%  

13

%

Ladies’ apparel

 

21

 

21

 

22

 

23

 

Ladies’ accessories and lingerie

 

13

 

13

 

13

 

14

 

Juniors’ and children’s apparel

 

10

 

10

 

10

 

10

 

Men’s apparel and accessories

 

19

 

20

 

19

 

20

 

Shoes

 

15

 

16

 

15

 

15

 

Home and furniture

 

3

 

3

 

3

 

3

 

​

 

95

 

97

 

96

 

98

 

Construction segment

 

5

 

3

 

4

 

2

 

Total

 

100

%  

100

%

100

%  

100

%

​

The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations:

​

​

​

​

​

​

​

​

​

​

​

​

    

Retail 

    

​

​

    

​

​

(in thousands of dollars)

​

Operations

​

Construction

​

Consolidated

Three Months Ended October 28, 2023

 

​

  

 

​

  

 

​

  

Net sales from external customers

​

$

1,409,487

​

$

66,875

​

$

1,476,362

Gross margin

​

 

638,612

​

 

3,213

​

 

641,825

Depreciation and amortization

​

 

44,641

​

 

66

​

 

44,707

Interest and debt (income) expense, net

​

 

(1,581)

​

 

(209)

​

 

(1,790)

Income before income taxes

​

 

198,369

​

 

1,010

​

 

199,379

Total assets

​

 

3,828,418

​

 

69,516

​

 

3,897,934

​

​

​

​

​

​

​

​

​

​

Three Months Ended October 29, 2022

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

1,499,072

​

$

45,070

​

$

1,544,142

Gross margin

​

 

685,643

​

 

2,822

​

 

688,465

Depreciation and amortization

​

 

46,614

​

 

51

​

 

46,665

Interest and debt (income) expense, net

​

 

6,984

​

 

(27)

​

 

6,957

Income before income taxes

​

 

241,863

​

 

866

​

 

242,729

Total assets

​

 

3,737,746

​

 

54,887

​

 

3,792,633

​

​

​

​

​

​

​

​

​

​

Nine Months Ended October 28, 2023

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

4,422,952

​

$

204,735

​

$

4,627,687

Gross margin

​

 

1,934,624

​

 

8,430

​

 

1,943,054

Depreciation and amortization

​

 

135,079

​

 

193

​

 

135,272

Interest and debt (income) expense, net

​

 

(1,078)

​

 

(457)

​

 

(1,535)

Income before income taxes

​

 

631,810

​

 

2,275

​

 

634,085

Total assets

​

 

3,828,418

​

 

69,516

​

 

3,897,934

​

​

​

​

​

​

​

​

​

​

Nine Months Ended October 29, 2022

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

4,632,529

​

$

111,901

​

$

4,744,430

Gross margin

​

 

2,079,008

​

 

7,091

​

 

2,086,099

Depreciation and amortization

​

 

140,628

​

 

165

​

 

140,793

Interest and debt (income) expense, net

​

 

27,154

​

 

(46)

​

 

27,108

Income before income taxes

​

 

775,965

​

 

1,366

​

 

777,331

Total assets

​

 

3,737,746

​

 

54,887

​

 

3,792,633

​

Intersegment construction revenues of $14.4 million and $10.7 million for the three months ended October 28, 2023 and October 29, 2022, respectively, and $34.9 million and $32.4 million for the nine months ended October 28, 2023 and October 29, 2022, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods.

The retail operations segment gives rise to contract liabilities through the customer loyalty program associated with Dillard’s private label cards and through the issuances of gift cards. The customer loyalty program liability and a portion of the gift card liability are included in trade accounts payable and accrued expenses, and a portion of the gift card liability is included in other liabilities on the condensed consolidated balance sheets. Our retail operations segment contract liabilities are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail

​

​

​

​

​

​

​

​

​

​

​

​

​

​

October 28,

​

January 28,

​

October 29,

​

January 29,

(in thousands of dollars)

    

2023

    

2023

    

2022

    

2022

Contract liabilities

​

$

71,675

​

$

83,909

​

$

67,109

​

$

80,421

​

During the nine months ended October 28, 2023 and October 29, 2022, the Company recorded $44.4 million and $44.8 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $83.9 million and $80.4 million at January 28, 2023 and January 29, 2022, respectively.

Construction contracts give rise to accounts receivable, contract assets and contract liabilities. We record accounts receivable based on amounts expected to be collected from customers. We also record costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in other current assets and trade accounts payable and accrued expenses, respectively, in the condensed consolidated balance sheets. The amounts included in the condensed consolidated balance sheets are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Construction

    

​

​

    

​

​

    

​

​

    

​

​

​

​

October 28,

​

January 28,

​

October 29,

​

January 29,

(in thousands of dollars)

​

2023

​

2023

​

2022

​

2022

Accounts receivable

​

$

47,089

​

$

44,286

​

$

31,111

​

$

25,912

Costs and estimated earnings in excess of billings on uncompleted contracts

​

 

2,069

​

 

798

​

 

3,512

​

 

2,847

Billings in excess of costs and estimated earnings on uncompleted contracts

​

 

9,120

​

 

10,909

​

 

9,969

​

 

6,298

​

During the nine months ended October 28, 2023 and October 29, 2022, the Company recorded $10.4 million and $5.7 million, respectively, in revenue that was previously included in billings in excess of costs and estimated earnings on uncompleted contracts of $10.9 million and $6.3 million at January 28, 2023 and January 29, 2022, respectively.

The remaining performance obligations related to executed construction contracts totaled $220.9 million, $189.1 million and $232.7 million at October 28, 2023, January 28, 2023 and October 29, 2022, respectively.