XML 25 R12.htm IDEA: XBRL DOCUMENT v3.24.3
Business Segments
 9 Months Ended
Nov. 02, 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

​

Nine Months Ended

​

​

​

November 2,

​

October 28,

​

November 2,

​

October 28,

​

​

​

2024

    

2023

​

2024

    

2023

 

Retail operations segment:

​

  

​

  

​

  

​

  

 

Cosmetics

 

15

%  

14

%  

15

%  

14

%

Ladies’ apparel

 

21

 

21

 

22

 

22

​

Ladies’ accessories and lingerie

 

13

 

13

 

13

 

13

​

Juniors’ and children’s apparel

 

9

 

10

 

9

 

10

​

Men’s apparel and accessories

 

19

 

19

 

19

 

19

​

Shoes

 

15

 

15

 

15

 

15

​

Home and furniture

 

3

 

3

 

3

 

3

​

​

 

95

 

95

 

96

 

96

​

Construction segment

 

5

 

5

 

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 November 2, 2024

 

​

  

 

​

  

 

​

  

Net sales from external customers

​

$

1,356,240

​

$

70,769

​

$

1,427,009

Gross margin

​

 

603,480

​

 

4,216

​

 

607,696

Depreciation and amortization

​

 

43,976

​

 

69

​

 

44,045

Interest and debt (income) expense, net

​

 

(4,267)

​

 

(211)

​

 

(4,478)

Income before income taxes

​

 

160,413

​

 

2,093

​

 

162,506

Total assets

​

 

4,053,706

​

 

79,356

​

 

4,133,062

​

​

​

​

​

​

​

​

​

​

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

​

​

​

​

​

​

​

​

​

​

Nine Months Ended November 2, 2024

​

 

  

​

 

  

​

 

  

Net sales from external customers

​

$

4,275,314

​

$

190,684

​

$

4,465,998

Gross margin

​

 

1,849,863

​

 

8,666

​

 

1,858,529

Depreciation and amortization

​

 

136,240

​

 

300

​

 

136,540

Interest and debt (income) expense, net

​

 

(11,273)

​

 

(671)

​

 

(11,944)

Income before income taxes

​

 

493,097

​

 

1,330

​

 

494,427

Total assets

​

 

4,053,706

​

 

79,356

​

 

4,133,062

​

​

​

​

​

​

​

​

​

​

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

​

Intersegment construction revenues of $6.8 million and $14.4 million for the three months ended November 2, 2024 and October 28, 2023, respectively, and $23.6 million and $34.9 million for the nine months ended November 2, 2024 and October 28, 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

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

November 2,

​

February 3,

​

October 28,

​

January 28,

     

(in thousands of dollars)

    

2024

    

2024

    

2023

    

2023

​

Contract liabilities

​

$

67,189

​

$

85,227

​

$

71,675

​

$

83,909

​

​

During the nine months ended November 2, 2024 and October 28, 2023, the Company recorded $47.1 million and $44.4 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

    

​

​

    

​

​

    

​

​

    

​

​

    

​

​

November 2,

​

February 3,

​

October 28,

​

January 28,

     

(in thousands of dollars)

​

2024

​

2024

​

2023

​

2023

​

Accounts receivable

​

$

54,992

​

$

47,240

​

$

47,089

​

$

44,286

​

Costs and estimated earnings in excess of billings on uncompleted contracts

​

 

2,186

​

 

1,695

​

 

2,069

​

 

798

​

Billings in excess of costs and estimated earnings on uncompleted contracts

​

 

12,436

​

 

6,307

​

 

9,120

​

 

10,909

​

​

During the nine months ended November 2, 2024 and October 28, 2023, the Company recorded $5.7 million and $10.4 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 $248.8 million, $163.7 million and $220.9 million at November 2, 2024, February 3, 2024 and October 28, 2023, respectively.