XML 25 R12.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Business Segments
 6 Months Ended
Aug. 03, 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:

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Six Months Ended

​

​

​

August 3,

​

July 29,

​

August 3,

​

July 29,

​

​

​

2024

    

2023

​

2024

    

2023

 

Retail operations segment:

​

  

​

  

​

  

​

  

 

Cosmetics

 

15

%  

14

%  

15

%  

14

%

Ladies’ apparel

 

22

 

22

 

23

 

23

​

Ladies’ accessories and lingerie

 

14

 

14

 

13

 

13

​

Juniors’ and children’s apparel

 

8

 

8

 

9

 

9

​

Men’s apparel and accessories

 

20

 

21

 

19

 

19

​

Shoes

 

14

 

14

 

14

 

15

​

Home and furniture

 

3

 

3

 

3

 

3

​

​

 

96

 

96

 

96

 

96

​

Construction segment

 

4

 

4

 

4

 

4

​

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 August 3, 2024

 

​

  

 

​

  

 

​

  

Net sales from external customers

​

$

1,426,431

​

$

63,507

​

$

1,489,938

Gross margin

​

 

557,198

​

 

2,409

​

 

559,607

Depreciation and amortization

​

 

46,213

​

 

163

​

 

46,376

Interest and debt (income) expense, net

​

 

(3,718)

​

 

(216)

​

 

(3,934)

Income (loss) before income taxes

​

 

97,477

​

 

(364)

​

 

97,113

Total assets

​

 

3,584,664

​

 

77,198

​

 

3,661,862

​

​

​

​

​

​

​

​

​

​

Three Months Ended July 29, 2023

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

1,498,532

​

$

68,845

​

$

1,567,377

Gross margin

​

 

605,623

​

 

2,919

​

 

608,542

Depreciation and amortization

​

 

44,751

​

 

67

​

 

44,818

Interest and debt expense (income), net

​

 

275

​

 

(143)

​

 

132

Income before income taxes

​

 

170,618

​

 

973

​

 

171,591

Total assets

​

 

3,443,882

​

 

68,480

​

 

3,512,362

​

​

​

​

​

​

​

​

​

​

Six Months Ended August 3, 2024

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

2,919,074

​

$

119,915

​

$

3,038,989

Gross margin

​

 

1,246,383

​

 

4,450

​

 

1,250,833

Depreciation and amortization

​

 

92,264

​

 

231

​

 

92,495

Interest and debt (income) expense, net

​

 

(7,006)

​

 

(460)

​

 

(7,466)

Income (loss) before income taxes

​

 

332,684

​

 

(763)

​

 

331,921

Total assets

​

 

3,584,664

​

 

77,198

​

 

3,661,862

​

​

​

​

​

​

​

​

​

​

Six Months Ended July 29, 2023

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

3,013,465

​

$

137,860

​

$

3,151,325

Gross margin

​

 

1,296,012

​

 

5,217

​

 

1,301,229

Depreciation and amortization

​

 

90,438

​

 

127

​

 

90,565

Interest and debt expense (income), net

​

 

503

​

 

(248)

​

 

255

Income before income taxes

​

 

433,441

​

 

1,265

​

 

434,706

Total assets

​

 

3,443,882

​

 

68,480

​

 

3,512,362

​

Intersegment construction revenues of $7.3 million and $10.1 million for the three months ended August 3, 2024 and July 29, 2023, respectively, and $16.7 million and $20.5 million for the six months ended August 3, 2024 and July 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:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Retail

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

August 3,

​

February 3,

​

July 29,

​

January 28,

     

(in thousands of dollars)

    

2024

    

2024

    

2023

    

2023

​

Contract liabilities

​

$

70,207

​

$

85,227

​

$

73,399

​

$

83,909

​

​

During the six months ended August 3, 2024 and July 29, 2023, the Company recorded $38.1 million and $36.7 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.

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

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

August 3,

​

February 3,

​

July 29,

​

January 28,

     

(in thousands of dollars)

​

2024

​

2024

​

2023

​

2023

​

Accounts receivable

​

$

53,548

​

$

47,240

​

$

48,429

​

$

44,286

​

Costs and estimated earnings in excess of billings on uncompleted contracts

​

 

3,685

​

 

1,695

​

 

4,189

​

 

798

​

Billings in excess of costs and estimated earnings on uncompleted contracts

​

 

9,543

​

 

6,307

​

 

10,001

​

 

10,909

​

​

During the six months ended August 3, 2024 and July 29, 2023, the Company recorded $5.4 million and $10.1 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 $234.0 million, $163.7 million and $210.5 million at August 3, 2024, February 3, 2024 and July 29, 2023, respectively.