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Business Segments
 3 Months Ended
May 04, 2024
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:

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Three Months Ended

​

​

​

May 4,

​

April 29,

​

​

​

2024

    

2023

 

Retail operations segment:

​

  

​

  

 

Cosmetics

​

16

%  

15

%

Ladies’ apparel

​

23

 

23

​

Ladies’ accessories and lingerie

 

12

 

12

​

Juniors’ and children’s apparel

 

10

 

10

​

Men’s apparel and accessories

 

17

 

18

​

Shoes

 

15

 

15

​

Home and furniture

 

3

 

3

​

​

 

96

 

96

​

Construction segment

 

4

 

4

​

Total

​

100

%  

100

%

​

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

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​

​

​

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Retail 

    

​

​

    

​

​

(in thousands of dollars)

​

Operations

​

Construction

​

Consolidated

Three Months Ended May 4, 2024

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

1,492,643

​

$

56,408

​

$

1,549,051

Gross margin

​

 

689,185

​

 

2,041

​

 

691,226

Depreciation and amortization

​

 

46,051

​

 

68

​

 

46,119

Interest and debt (income) expense, net

​

 

(3,288)

​

 

(244)

​

 

(3,532)

Income (loss) before income taxes

​

 

235,206

​

 

(398)

​

 

234,808

Total assets

​

 

3,863,603

​

 

73,553

​

 

3,937,156

​

​

​

​

​

​

​

​

​

​

Three Months Ended April 29, 2023

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

1,514,933

​

$

69,015

​

$

1,583,948

Gross margin

​

 

690,389

​

 

2,298

​

 

692,687

Depreciation and amortization

​

 

45,687

​

 

60

​

 

45,747

Interest and debt expense (income), net

​

 

228

​

 

(105)

​

 

123

Income before income taxes

​

 

262,823

​

 

292

​

 

263,115

Total assets

​

 

3,686,633

​

 

62,396

​

 

3,749,029

​

Intersegment construction revenues of $9.4 million and $10.4 million for the three months ended May 4, 2024 and April 29, 2023, 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:

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​

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​

​

​

Retail

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

May 4,

​

February 3,

​

April 29,

​

January 28,

     

(in thousands of dollars)

    

2024

    

2024

    

2023

    

2023

​

Contract liabilities

​

$

75,075

​

$

85,227

​

$

76,011

​

$

83,909

​

​

During the three months ended May 4, 2024 and April 29, 2023, the Company recorded $25.0 million and $24.3 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $85.2 million and $83.9 million at February 3, 2024 and January 28, 2023, respectively.

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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:

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​

​

​

​

​

​

​

Construction

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

May 4,

​

February 3,

​

April 29,

​

January 28,

     

(in thousands of dollars)

​

2024

​

2024

​

2023

​

2023

​

Accounts receivable

​

$

39,773

​

$

47,240

​

$

48,334

​

$

44,286

​

Costs and estimated earnings in excess of billings on uncompleted contracts

​

 

16,707

​

 

1,695

​

 

1,473

​

 

798

​

Billings in excess of costs and estimated earnings on uncompleted contracts

​

 

7,426

​

 

6,307

​

 

10,095

​

 

10,909

​

​

During the three months ended May 4, 2024 and April 29, 2023, the Company recorded $5.1 million and $9.5 million, respectively, in revenue that was previously included in billings in excess of costs and estimated earnings on uncompleted contracts of $6.3 million and $10.9 million at February 3, 2024 and January 28, 2023, respectively.

The remaining performance obligations related to executed construction contracts totaled $187.0 million, $163.7 million and $201.8 million at May 4, 2024, February 3, 2024 and April 29, 2023, respectively.