Cover Page
Cover Page - shares | 9 Months Ended | |
Oct. 29, 2022 | Nov. 26, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 29, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-6140 | |
Entity Registrant Name | DILLARD’S, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 71-0388071 | |
Entity Address, Address Line One | 1600 CANTRELL ROAD | |
Entity Address, City or Town | LITTLE ROCK | |
Entity Address, State or Province | AR | |
Entity Address, Postal Zip Code | 72201 | |
City Area Code | 501 | |
Local Phone Number | 376-5200 | |
Title of 12(b) Security | Class A Common Stock | |
Trading Symbol | DDS | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000028917 | |
Current Fiscal Year End Date | --01-28 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common Stock Class A | ||
Entity Common Stock, Shares Outstanding | 13,138,681 | |
Common Stock Class B | ||
Entity Common Stock, Shares Outstanding | 3,986,233 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 532,708 | $ 716,759 | $ 619,721 |
Accounts receivable | 40,476 | 39,777 | 28,472 |
Short-term investments | 197,971 | ||
Merchandise inventories | 1,644,793 | 1,080,178 | 1,525,860 |
Federal and state income taxes | 99,764 | ||
Other current assets | 99,471 | 77,937 | 102,981 |
Total current assets | 2,515,419 | 1,914,651 | 2,376,798 |
Property and equipment (net of accumulated depreciation and amortization of $2,647,231, $2,517,915 and $2,586,059, respectively) | 1,146,064 | 1,190,151 | 1,218,840 |
Operating lease assets | 36,663 | 42,941 | 41,189 |
Deferred income taxes | 30,841 | 28,931 | 34,809 |
Other assets | 63,646 | 68,883 | 68,560 |
Total assets | 3,792,633 | 3,245,557 | 3,740,196 |
Current liabilities: | |||
Trade accounts payable and accrued expenses | 1,293,699 | 886,233 | 1,285,786 |
Current portion of long-term debt | 44,800 | 44,800 | |
Current portion of finance lease liabilities | 180 | ||
Current portion of operating lease liabilities | 10,332 | 11,712 | 11,432 |
Federal and state income taxes | 7,418 | 23,441 | |
Total current liabilities | 1,356,249 | 966,186 | 1,297,398 |
Long-term debt | 321,327 | 321,247 | 365,982 |
Operating lease liabilities | 26,232 | 30,969 | 29,293 |
Other liabilities | 279,471 | 275,937 | 283,323 |
Subordinated debentures | 200,000 | 200,000 | 200,000 |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock | 1,240 | 1,240 | 1,240 |
Additional paid-in capital | 958,974 | 956,653 | 955,198 |
Accumulated other comprehensive loss | (22,254) | (22,798) | (33,350) |
Retained earnings | 5,619,813 | 5,027,922 | 5,002,074 |
Less treasury stock, at cost | (4,948,419) | (4,511,799) | (4,360,962) |
Total stockholders' equity | 1,609,354 | 1,451,218 | 1,564,200 |
Total liabilities and stockholders' equity | $ 3,792,633 | $ 3,245,557 | $ 3,740,196 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Statement of Financial Position [Abstract] | |||
Property and equipment, accumulated depreciation and amortization | $ 2,647,231 | $ 2,517,915 | $ 2,586,059 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,544,142 | $ 1,480,999 | $ 4,744,430 | $ 4,379,920 |
Service charges and other income | 28,930 | 30,913 | 89,311 | 90,959 |
Total net sales, service charges and other income | 1,573,072 | 1,511,912 | 4,833,741 | 4,470,879 |
Cost of sales | 855,677 | 796,276 | 2,658,331 | 2,497,575 |
Selling, general and administrative expenses | 413,838 | 393,191 | 1,215,943 | 1,095,673 |
Depreciation and amortization | 46,665 | 50,188 | 140,793 | 146,639 |
Rentals | 5,272 | 4,947 | 15,667 | 15,157 |
Interest and debt expense, net | 6,957 | 10,550 | 27,108 | 32,856 |
Other expense | 1,936 | 2,134 | 5,808 | 9,232 |
Gain on disposal of assets | (2) | (4) | (7,240) | (24,686) |
Income before income taxes | 242,729 | 254,630 | 777,331 | 698,433 |
Income taxes | 54,820 | 57,300 | 174,880 | 157,200 |
Net income | $ 187,909 | $ 197,330 | $ 602,451 | $ 541,233 |
Earnings per share: | ||||
Earnings per share - Basic | $ 10.96 | $ 9.81 | $ 34.05 | $ 25.76 |
Earnings per share - Diluted | $ 10.96 | $ 9.81 | $ 34.05 | $ 25.76 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 187,909 | $ 197,330 | $ 602,451 | $ 541,233 |
Other comprehensive income: | ||||
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $58, $168, $174 and $505, respectively) | 181 | 528 | 544 | 1,585 |
Comprehensive income | $ 188,090 | $ 197,858 | $ 602,995 | $ 542,818 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Amortization of retirement plan and other retiree benefit adjustments, tax | $ 58 | $ 168 | $ 174 | $ 505 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Treasury Stock, Common | Total |
Balance at Jan. 30, 2021 | $ 1,240 | $ 954,131 | $ (34,935) | $ 4,471,269 | $ (3,950,697) | $ 1,441,008 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 541,233 | 541,233 | ||||
Other comprehensive income | 1,585 | 1,585 | ||||
Issuance of 9,000 shares under equity plans during the nine months ended October 29, 2022 and October 30, 2021 | 1,067 | 1,067 | ||||
Purchase of 98,983 and 1,230,705 shares of treasury stock during the three months ended and 1,708,918 and 2,590,065 shares during the nine months ended October 29, 2022 and October 30, 2021, respectively | (410,265) | (410,265) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.20 per share for the three months ended and $0.60 and $0.50 per share for the nine months ended October 29, 2022 and October 30, 2021, respectively | (10,428) | (10,428) | ||||
Balance at Oct. 30, 2021 | 1,240 | 955,198 | (33,350) | 5,002,074 | (4,360,962) | 1,564,200 |
Balance at Jul. 31, 2021 | 1,240 | 955,198 | (33,878) | 4,808,737 | (4,121,718) | 1,609,579 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 197,330 | 197,330 | ||||
Other comprehensive income | 528 | 528 | ||||
Purchase of 98,983 and 1,230,705 shares of treasury stock during the three months ended and 1,708,918 and 2,590,065 shares during the nine months ended October 29, 2022 and October 30, 2021, respectively | (239,244) | (239,244) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.20 per share for the three months ended and $0.60 and $0.50 per share for the nine months ended October 29, 2022 and October 30, 2021, respectively | (3,993) | (3,993) | ||||
Balance at Oct. 30, 2021 | 1,240 | 955,198 | (33,350) | 5,002,074 | (4,360,962) | 1,564,200 |
Balance at Jan. 29, 2022 | 1,240 | 956,653 | (22,798) | 5,027,922 | (4,511,799) | 1,451,218 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 602,451 | 602,451 | ||||
Other comprehensive income | 544 | 544 | ||||
Issuance of 9,000 shares under equity plans during the nine months ended October 29, 2022 and October 30, 2021 | 2,321 | 2,321 | ||||
Purchase of 98,983 and 1,230,705 shares of treasury stock during the three months ended and 1,708,918 and 2,590,065 shares during the nine months ended October 29, 2022 and October 30, 2021, respectively | (436,620) | (436,620) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.20 per share for the three months ended and $0.60 and $0.50 per share for the nine months ended October 29, 2022 and October 30, 2021, respectively | (10,560) | (10,560) | ||||
Balance at Oct. 29, 2022 | 1,240 | 958,974 | (22,254) | 5,619,813 | (4,948,419) | 1,609,354 |
Balance at Jul. 30, 2022 | 1,240 | 958,974 | (22,435) | 5,435,331 | (4,924,109) | 1,449,001 |
Increase (Decrease) in Stockholders' Equity | ||||||
Net income | 187,909 | 187,909 | ||||
Other comprehensive income | 181 | 181 | ||||
Purchase of 98,983 and 1,230,705 shares of treasury stock during the three months ended and 1,708,918 and 2,590,065 shares during the nine months ended October 29, 2022 and October 30, 2021, respectively | (24,310) | (24,310) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.20 per share for the three months ended and $0.60 and $0.50 per share for the nine months ended October 29, 2022 and October 30, 2021, respectively | (3,427) | (3,427) | ||||
Balance at Oct. 29, 2022 | $ 1,240 | $ 958,974 | $ (22,254) | $ 5,619,813 | $ (4,948,419) | $ 1,609,354 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY [Abstract] | ||||
Common stock, shares issued under equity plans | 9,000 | 9,000 | ||
Treasury stock, shares acquired | 98,983 | 1,230,705 | 1,708,918 | 2,590,065 |
Common stock, declared dividends per share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.50 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 29, 2022 | Oct. 30, 2021 | |
Operating activities: | ||
Net income | $ 602,451 | $ 541,233 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and other deferred cost | 141,978 | 148,319 |
Gain on disposal of assets | (7,240) | (24,686) |
Proceeds from insurance | 2,902 | |
Loss on early extinguishment of debt | 2,830 | |
Accrued interest on short-term investments | (1,155) | |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable | (699) | 8,221 |
Increase in merchandise inventories | (564,615) | (438,097) |
Increase in other current assets | (18,416) | (49,214) |
Increase in other assets | (213) | (2,492) |
Increase in trade accounts payable and accrued expenses and other liabilities | 425,248 | 528,087 |
(Decrease) increase in income taxes | (18,918) | 10,980 |
Net cash provided by operating activities | 558,421 | 728,083 |
Investing activities: | ||
Purchase of property and equipment and capitalized software | (94,771) | (79,748) |
Proceeds from disposal of assets | 8,095 | 29,293 |
Proceeds from insurance | 4,886 | 3,801 |
Purchase of short-term investments | (196,816) | |
Distribution from joint venture | 1,475 | |
Net cash used in investing activities | (278,606) | (45,179) |
Financing activities: | ||
Principal payments on long-term debt and finance lease liabilities | (515) | |
Issuance cost of line of credit | (3,008) | |
Cash dividends paid | (11,013) | (9,734) |
Purchase of treasury stock | (452,853) | (410,265) |
Net cash used in financing activities | (463,866) | (423,522) |
(Decrease) increase in cash and cash equivalents | (184,051) | 259,382 |
Cash and cash equivalents, beginning of period | 716,759 | 360,339 |
Cash and cash equivalents, end of period | 532,708 | 619,721 |
Non-cash transactions: | ||
Accrued capital expenditures | 8,757 | 7,168 |
Stock awards | 2,321 | 1,067 |
Lease assets obtained in exchange for new operating lease liabilities | $ 3,392 | $ 4,536 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Oct. 29, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Note 1. Basis of Presentation The accompanying unaudited interim condensed consolidated financial statements of Dillard’s, Inc. (the “Company”) have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended October 29, 2022 are not necessarily indicative of the results that may be expected for the fiscal year ending January 28, 2023 due to, among other factors, the seasonal nature of the business. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended January 29, 2022 filed with the SEC on March 29, 2022. During the fiscal quarter ended July 30, 2022, the Company began purchasing short-term investments. Short-term investments are securities with original maturities of greater than three months but less than twelve months and are comprised of U.S. Treasury Bills. The Company determines the classification of these securities as trading, available for sale or held to maturity at the time of purchase and re-evaluates these determinations at each balance sheet date. Our short-term investments are classified as held-to-maturity for the period presented as we have the positive intent and ability to hold these investments to maturity. Our held-to-maturity investments are stated at amortized cost, which approximated fair value, and are periodically assessed for other-than-temporary impairment. |
Accounting Standards
Accounting Standards | 9 Months Ended |
Oct. 29, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards | Note 2. Accounting Standards Recently Issued Accounting Pronouncements Except as noted below, the Company has considered all recent accounting pronouncements and Management believes there is no accounting guidance issued but not yet effective that would be relevant to the Company’s current condensed consolidated financial statements. Disclosure of Supplier Finance Program Obligations In September 2022, the Financial Accounting Standards Board issued accounting standards update ("ASU") No. 2022-04, Disclosure of Supplier Finance Program Obligations |
Business Segments
Business Segments | 9 Months Ended |
Oct. 29, 2022 | |
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, the Company determined its operating segments on a store by store basis. Each store’s operating performance has been aggregated into one reportable segment. The Company’s operating segments are aggregated for financial reporting purposes because they 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 operating segments 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 29, October 30, October 29, October 30, 2022 2021 2022 2021 Retail operations segment Cosmetics 14 % 13 % 13 % 13 % Ladies’ apparel 21 22 23 23 Ladies’ accessories and lingerie 13 14 14 15 Juniors’ and children’s apparel 10 11 10 10 Men’s apparel and accessories 20 20 20 19 Shoes 16 16 15 15 Home and furniture 3 3 3 3 97 99 98 98 Construction segment 3 1 2 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 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 expense (income), 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 Three Months Ended October 30, 2021 Net sales from external customers $ 1,460,184 $ 20,815 $ 1,480,999 Gross margin 682,317 2,406 684,723 Depreciation and amortization 50,122 66 50,188 Interest and debt expense (income), net 10,557 (7) 10,550 Income before income taxes 254,152 478 254,630 Total assets 3,703,257 36,939 3,740,196 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 expense (income), 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 Nine Months Ended October 30, 2021 Net sales from external customers $ 4,296,316 $ 83,604 $ 4,379,920 Gross margin 1,876,558 5,787 1,882,345 Depreciation and amortization 146,441 198 146,639 Interest and debt expense (income), net 32,889 (33) 32,856 Income before income taxes 697,140 1,293 698,433 Total assets 3,703,257 36,939 3,740,196 Intersegment construction revenues of $10.7 million and $12.0 million for the three months ended October 29, 2022 and October 30, 2021, respectively, and $32.4 million and $28.6 million for the nine months ended October 29, 2022 and October 30, 2021, 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 loyalty program liability and a portion of the gift card liability is 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 29, January 29, October 30, January 30, (in thousands of dollars) 2022 2022 2021 2021 Contract liabilities $ 67,109 $ 80,421 $ 59,718 $ 68,021 During the nine months ended October 29, 2022 and October 30, 2021, the Company recorded $44.8 million and $35.4 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $80.4 million and $68.0 million at January 29, 2022 and January 30, 2021, 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 in the condensed consolidated balance sheets, respectively. The amounts included in the condensed consolidated balance sheets are as follows: Construction October 29, January 29, October 30, January 30, (in thousands of dollars) 2022 2022 2021 2021 Accounts receivable $ 31,111 $ 25,912 $ 18,586 $ 25,094 Costs and estimated earnings in excess of billings on uncompleted contracts 3,512 2,847 2,333 450 Billings in excess of costs and estimated earnings on uncompleted contracts 9,969 6,298 6,521 4,685 During the nine months ended October 29, 2022 and October 30, 2021, the Company recorded $5.7 million and $4.1 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 $4.7 million at January 29, 2022 and January 30, 2021, respectively. The remaining performance obligations related to executed construction contracts totaled $232.7 million, $93.9 million and $84.2 million at October 29, 2022, January 29, 2022 and October 30, 2021, respectively. |
Earnings Per Share Data
Earnings Per Share Data | 9 Months Ended |
Oct. 29, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share Data | Note 4. Earnings Per Share Data The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Net income $ 187,909 $ 197,330 $ 602,451 $ 541,233 Weighted average shares of common stock outstanding 17,139 20,109 17,691 21,009 Basic and diluted earnings per share $ 10.96 $ 9.81 $ 34.05 $ 25.76 The Company maintains a capital structure in which common stock is the only equity security issued and outstanding, and there were no shares of preferred stock, stock options, other dilutive securities or potentially dilutive securities issued or outstanding during the three and nine months ended October 29, 2022 and October 30, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 29, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 5. Commitments and Contingencies Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending against the Company and its subsidiaries. In the opinion of management, disposition of these matters, individually or in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, cash flows or results of operations. At October 29, 2022, letters of credit totaling $19.3 million were issued under the Company’s revolving credit facility. See Note 7, Revolving Credit Agreement |
Benefit Plans
Benefit Plans | 9 Months Ended |
Oct. 29, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Note 6. Benefit Plans The Company has an unfunded, nonqualified defined benefit plan (“Pension Plan”) for its officers. The Pension Plan is noncontributory and provides benefits based on years of service and compensation during employment. The Company determines pension expense using an actuarial cost method to estimate the total benefits ultimately payable to officers and allocates this cost to service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. The Company contributed $1.5 million and $4.6 million to the Pension Plan during the three and nine months ended October 29, 2022, respectively, and expects to make additional contributions to the Pension Plan of approximately $1.7 million during the remainder of fiscal 2022. The components of net periodic benefit costs are as follows (in thousands): Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Components of net periodic benefit costs: Service cost $ 1,019 $ 1,067 $ 3,057 $ 3,201 Interest cost 1,696 1,438 5,089 4,312 Net actuarial loss 240 696 719 2,090 Net periodic benefit costs $ 2,955 $ 3,201 $ 8,865 $ 9,603 The service cost component of net periodic benefit costs is included in selling, general and administrative expenses, and the interest cost and net actuarial loss components are included in other expense. |
Revolving Credit Agreement
Revolving Credit Agreement | 9 Months Ended |
Oct. 29, 2022 | |
Line of Credit Facility [Abstract] | |
Short-term Debt | Note 7. Revolving Credit Agreement 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 provides a borrowing capacity of $800 million, subject to certain limitations as outlined in the credit agreement, with a $200 million expansion option. In April 2021, the Company amended the credit agreement (the "2021 amendment"). Pursuant to the 2021 amendment, the Company pays a variable rate of interest on borrowings under the credit agreement and a commitment fee to the participating banks. The rate of interest on borrowings is LIBOR plus 1.75% if average quarterly availability is less than 50% of the total commitment, as defined in the 2021 amended credit agreement ("total commitment"), and the rate of interest on borrowings is LIBOR plus 1.50% if average quarterly availability is greater than or equal to 50% of the total commitment. The commitment fee for unused borrowings is 0.30% per annum if average borrowings are less than 35% of the total commitment and 0.25% if average borrowings are greater than or equal to 35% of the total commitment. As long as availability exceeds $80 million and certain events of default have not occurred and are not continuing, there are no financial covenant requirements under the credit agreement. The credit agreement, as amended by the 2021 amendment, matures on April 28, 2026. At October 29, 2022, no borrowings were outstanding, and letters of credit totaling $19.3 million were issued under the credit agreement leaving unutilized availability under the facility of $780.7 million. |
Stock Repurchase Programs
Stock Repurchase Programs | 9 Months Ended |
Oct. 29, 2022 | |
Schedule of Share Repurchase Program Activity [Abstract] | |
Stock Repurchase Programs | Note 8. Stock Repurchase Programs In March 2018, the Company announced that its Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock ("March 2018 Stock Plan"). In May 2021, the Company announced that its Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock ("May 2021 Stock Plan"). In February 2022, the Company announced that its Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock under an open-ended plan (“February 2022 Stock Plan”). The February 2022 Stock Plan permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934 or through privately negotiated transactions. The following is a summary of share repurchase activity for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Cost of shares repurchased $ 24,310 $ 239,244 $ 436,620 $ 410,265 Number of shares repurchased 99 1,231 1,709 2,590 Average price per share $ 245.60 $ 194.40 $ 255.49 $ 158.40 All repurchases of the Company’s Class A Common Stock above were made at the market price at the trade date, and all amounts paid to reacquire these shares were allocated to treasury stock. As of October 29, 2022, the Company had completed the authorized purchases under the March 2018 Stock Plan and the May 2021 Stock Plan, and |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 29, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes During the three and nine months ended October 29, 2022 and October 30, 2021, 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. |
Gain on Disposal of Assets
Gain on Disposal of Assets | 9 Months Ended |
Oct. 29, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
(Gain) Loss on Disposal of Fixed Assets | Note 10. Gain on Disposal of Assets During the nine months ended October 29, 2022, the Company recorded proceeds of $8.1 million primarily from the sale of one store property, resulting in a gain of $7.2 million that was recorded in gain on disposal of assets. During the nine months ended October 30, 2021, the Company recorded proceeds of $29.3 million primarily from the sale of three store properties, resulting in a gain of $24.7 million that was recorded in gain on disposal of assets. |
Fair Value Disclosures
Fair Value Disclosures | 9 Months Ended |
Oct. 29, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 11. Fair Value Disclosures The estimated fair values of financial instruments presented herein have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of amounts the Company could realize in a current market exchange. The fair value of the Company’s cash and cash equivalents and accounts receivable approximates their carrying values at October 29, 2022 due to the short-term maturities of these instruments. The Company’s short-term investments are recorded at amortized cost, which is consistent with the Company’s held-to-maturity classification. The fair value of the Company’s long-term debt at October 29, 2022 was approximately $370 million. The carrying value of the Company’s long-term debt at October 29, 2022 was $366.1 million. The fair value of the Company’s subordinated debentures at October 29, 2022 was approximately $205 million. The carrying value of the Company’s subordinated debentures at October 29, 2022 was $200 million. The fair value of the Company’s long-term debt and subordinated debentures is based on market prices and is categorized as Level 1 in the fair value hierarchy. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Oct. 29, 2022 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 12. Subsequent Event On November 17, 2022, the Company announced that its Board of Directors declared a special dividend of $15.00 per share. The dividend is payable on the Class A and Class B Common Stock of the Company on January 9, 2023 to shareholders of record as of December 15, 2022. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Segment Reporting [Abstract] | |
Schedule of percentage of net sales by segment and major product line | Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Retail operations segment Cosmetics 14 % 13 % 13 % 13 % Ladies’ apparel 21 22 23 23 Ladies’ accessories and lingerie 13 14 14 15 Juniors’ and children’s apparel 10 11 10 10 Men’s apparel and accessories 20 20 20 19 Shoes 16 16 15 15 Home and furniture 3 3 3 3 97 99 98 98 Construction segment 3 1 2 2 Total 100 % 100 % 100 % 100 % |
Schedule of segment reporting information, by segment | 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 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 expense (income), 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 Three Months Ended October 30, 2021 Net sales from external customers $ 1,460,184 $ 20,815 $ 1,480,999 Gross margin 682,317 2,406 684,723 Depreciation and amortization 50,122 66 50,188 Interest and debt expense (income), net 10,557 (7) 10,550 Income before income taxes 254,152 478 254,630 Total assets 3,703,257 36,939 3,740,196 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 expense (income), 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 Nine Months Ended October 30, 2021 Net sales from external customers $ 4,296,316 $ 83,604 $ 4,379,920 Gross margin 1,876,558 5,787 1,882,345 Depreciation and amortization 146,441 198 146,639 Interest and debt expense (income), net 32,889 (33) 32,856 Income before income taxes 697,140 1,293 698,433 Total assets 3,703,257 36,939 3,740,196 |
Schedule of contract liabilities - Retail | Retail October 29, January 29, October 30, January 30, (in thousands of dollars) 2022 2022 2021 2021 Contract liabilities $ 67,109 $ 80,421 $ 59,718 $ 68,021 |
Schedule of accounts receivable, contract assets and liabilities - Construction | Construction October 29, January 29, October 30, January 30, (in thousands of dollars) 2022 2022 2021 2021 Accounts receivable $ 31,111 $ 25,912 $ 18,586 $ 25,094 Costs and estimated earnings in excess of billings on uncompleted contracts 3,512 2,847 2,333 450 Billings in excess of costs and estimated earnings on uncompleted contracts 9,969 6,298 6,521 4,685 |
Earnings Per Share Data (Tables
Earnings Per Share Data (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of computation of basic and diluted earnings per share | The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data). Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Net income $ 187,909 $ 197,330 $ 602,451 $ 541,233 Weighted average shares of common stock outstanding 17,139 20,109 17,691 21,009 Basic and diluted earnings per share $ 10.96 $ 9.81 $ 34.05 $ 25.76 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit costs | The components of net periodic benefit costs are as follows (in thousands): Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Components of net periodic benefit costs: Service cost $ 1,019 $ 1,067 $ 3,057 $ 3,201 Interest cost 1,696 1,438 5,089 4,312 Net actuarial loss 240 696 719 2,090 Net periodic benefit costs $ 2,955 $ 3,201 $ 8,865 $ 9,603 |
Stock Repurchase Programs Sched
Stock Repurchase Programs Schedule of Repurchase Program Activity (Tables) | 9 Months Ended |
Oct. 29, 2022 | |
Schedule of Share Repurchase Program Activity [Abstract] | |
Schedule of share repurchase activity | The following is a summary of share repurchase activity for the periods indicated (in thousands, except per share data): Three Months Ended Nine Months Ended October 29, October 30, October 29, October 30, 2022 2021 2022 2021 Cost of shares repurchased $ 24,310 $ 239,244 $ 436,620 $ 410,265 Number of shares repurchased 99 1,231 1,709 2,590 Average price per share $ 245.60 $ 194.40 $ 255.49 $ 158.40 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Oct. 29, 2022 USD ($) | Oct. 30, 2021 USD ($) | Oct. 29, 2022 USD ($) segment | Oct. 30, 2021 USD ($) | Jan. 29, 2022 USD ($) | Jan. 30, 2021 USD ($) | |
Business Segments | ||||||
Number of reportable segments | segment | 2 | |||||
Concentration Risk, Percentage | 100% | 100% | 100% | 100% | ||
Net sales from external customers | $ 1,544,142 | $ 1,480,999 | $ 4,744,430 | $ 4,379,920 | ||
Gross margin | 688,465 | 684,723 | 2,086,099 | 1,882,345 | ||
Depreciation and amortization | 46,665 | 50,188 | 140,793 | 146,639 | ||
Interest and debt expense (income), net | 6,957 | 10,550 | 27,108 | 32,856 | ||
Income before income taxes | 242,729 | 254,630 | 777,331 | 698,433 | ||
Total assets | 3,792,633 | 3,740,196 | 3,792,633 | 3,740,196 | $ 3,245,557 | |
Contract liabilities | 67,109 | 59,718 | 67,109 | 59,718 | 80,421 | $ 68,021 |
Contract liabilities, revenue recognized | 44,800 | 35,400 | ||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||
Accounts Receivable, Construction Segment | 31,111 | 18,586 | 31,111 | 18,586 | 25,912 | 25,094 |
Costs and estimated earnings in excess of billings on uncompleted contracts, construction segment | 3,512 | 2,333 | 3,512 | 2,333 | 2,847 | 450 |
Billings in excess of costs and estimated earnings on uncompleted contracts, construction segment | 9,969 | 6,521 | 9,969 | 6,521 | 6,298 | $ 4,685 |
Revenue Recognized, previously recorded in Billings in excess of costs and estimated earnings, construction segment | 5,700 | 4,100 | ||||
Revenue, Remaining Performance Obligation, Amount, construction segment | 232,700 | 84,200 | $ 232,700 | 84,200 | $ 93,900 | |
Retail operations | ||||||
Business Segments | ||||||
Number of reportable segments | segment | 1 | |||||
Number of store formats | segment | 1 | |||||
Net sales from external customers | 1,499,072 | 1,460,184 | $ 4,632,529 | 4,296,316 | ||
Gross margin | 685,643 | 682,317 | 2,079,008 | 1,876,558 | ||
Depreciation and amortization | 46,614 | 50,122 | 140,628 | 146,441 | ||
Interest and debt expense (income), net | 6,984 | 10,557 | 27,154 | 32,889 | ||
Income before income taxes | 241,863 | 254,152 | 775,965 | 697,140 | ||
Total assets | $ 3,737,746 | $ 3,703,257 | $ 3,737,746 | $ 3,703,257 | ||
Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 97% | 99% | 98% | 98% | ||
Construction | ||||||
Business Segments | ||||||
Net sales from external customers | $ 45,070 | $ 20,815 | $ 111,901 | $ 83,604 | ||
Gross margin | 2,822 | 2,406 | 7,091 | 5,787 | ||
Depreciation and amortization | 51 | 66 | 165 | 198 | ||
Interest and debt expense (income), net | (27) | (7) | (46) | (33) | ||
Income before income taxes | 866 | 478 | 1,366 | 1,293 | ||
Total assets | $ 54,887 | $ 36,939 | $ 54,887 | $ 36,939 | ||
Construction | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 3% | 1% | 2% | 2% | ||
Intersegment Eliminations | ||||||
Business Segments | ||||||
Net sales from external customers | $ 10,700 | $ 12,000 | $ 32,400 | $ 28,600 | ||
Cosmetics | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 14% | 13% | 13% | 13% | ||
Ladies Apparel | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 21% | 22% | 23% | 23% | ||
Ladies Accessories and Lingerie | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 13% | 14% | 14% | 15% | ||
Juniors and Children's Apparel | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 10% | 11% | 10% | 10% | ||
Mens Apparel and Accessories | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 20% | 20% | 20% | 19% | ||
Shoes | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 16% | 16% | 15% | 15% | ||
Home and Furniture | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||||
Business Segments | ||||||
Concentration Risk, Percentage | 3% | 3% | 3% | 3% |
Earnings Per Share Data - Sched
Earnings Per Share Data - Schedule (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income - Basic | $ 187,909 | $ 197,330 | $ 602,451 | $ 541,233 |
Net income - Diluted | $ 187,909 | $ 197,330 | $ 602,451 | $ 541,233 |
Weighted average shares of common stock outstanding - Basic | 17,139 | 20,109 | 17,691 | 21,009 |
Weighted average shares of common stock outstanding - Diluted | 17,139 | 20,109 | 17,691 | 21,009 |
Earnings per share - Basic | $ 10.96 | $ 9.81 | $ 34.05 | $ 25.76 |
Earnings per share - Diluted | $ 10.96 | $ 9.81 | $ 34.05 | $ 25.76 |
Earnings Per Share Data - Narra
Earnings Per Share Data - Narrative (Details) - shares | Oct. 29, 2022 | Oct. 30, 2021 |
Earnings Per Share [Abstract] | ||
Total dilutive and potentially dilutive securities outstanding (in shares) | 0 | 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Oct. 29, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Outstanding letters of credit under the Company's revolving credit facility | $ 19.3 |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | |
Retirement Benefits [Abstract] | ||||
Employer contributions to pension plan | $ 1,500 | $ 4,600 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Year | 1,700 | 1,700 | ||
Components of net periodic benefit costs: | ||||
Service cost | 1,019 | $ 1,067 | 3,057 | $ 3,201 |
Interest cost | 1,696 | 1,438 | 5,089 | 4,312 |
Net actuarial loss | 240 | 696 | 719 | 2,090 |
Net periodic benefit costs | $ 2,955 | $ 3,201 | $ 8,865 | $ 9,603 |
Revolving Credit Agreement (Det
Revolving Credit Agreement (Details) - USD ($) $ in Millions | 1 Months Ended | |
May 01, 2021 | Oct. 29, 2022 | |
Line of Credit Facility [Abstract] | ||
Borrowing capacity | $ 800 | |
Expansion option | 200 | |
Reference rate | LIBOR | |
Basis spread on variable rate, condition one | 1.75% | |
Quarterly availability, percentage of commitment fee maximum for condition one | 50% | |
Basis spread on variable rate, condition two | 1.50% | |
Quarterly availability, percentage of commitment fee minimum for condition two | 50% | |
Commitment fee for unused borrowings, condition one | 0.30% | |
Unused borrowings, percentage of total commitment maximum for condition one | 35% | |
Commitment fee for unused borrowings, condition two | 0.25% | |
Unused borrowings, percentage of total commitment minimum for condition two | 35% | |
Minimum line of credit availability for no financial covenant requirements | $ 80 | |
Borrowings outstanding | 0 | |
Letters of credit issued | 19.3 | |
Unutilized credit facility borrowing capacity | $ 780.7 |
Stock Repurchase Programs (Deta
Stock Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Oct. 29, 2022 | Oct. 30, 2021 | Oct. 29, 2022 | Oct. 30, 2021 | Feb. 26, 2022 | May 29, 2021 | Mar. 31, 2018 | |
Stock repurchase programs | |||||||
Cost of shares repurchased | $ 24,310 | $ 239,244 | $ 436,620 | $ 410,265 | |||
Number of shares repurchased | 98,983 | 1,230,705 | 1,708,918 | 2,590,065 | |||
Average price per share | $ 245.60 | $ 194.40 | $ 255.49 | $ 158.40 | |||
March 2018 Stock Plan | Common Stock Class A | Maximum | |||||||
Stock repurchase programs | |||||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||||||
May 2021 Stock Plan | Common Stock Class A | Maximum | |||||||
Stock repurchase programs | |||||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | ||||||
February 2022 Stock Plan | Common Stock Class A | |||||||
Stock repurchase programs | |||||||
Repurchase of common stock remaining authorization | $ 175,400 | $ 175,400 | |||||
February 2022 Stock Plan | Common Stock Class A | Maximum | |||||||
Stock repurchase programs | |||||||
Stock Repurchase Program, Authorized Amount | $ 500,000 |
Gain on Disposal of Assets (Det
Gain on Disposal of Assets (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 29, 2022 USD ($) | Oct. 30, 2021 USD ($) | Oct. 29, 2022 USD ($) store | Oct. 30, 2021 USD ($) store | |
Discontinued Operations and Disposal Groups [Abstract] | ||||
Proceeds from disposal of assets | $ 8,095 | $ 29,293 | ||
Gain on disposal of assets | $ 2 | $ 4 | $ 7,240 | $ 24,686 |
Number of former retail stores sold | store | 1 | 3 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Oct. 29, 2022 | Jan. 29, 2022 | Oct. 30, 2021 |
Fair value disclosures | |||
Subordinated debentures | $ 200,000 | $ 200,000 | $ 200,000 |
Fair Value of Assets | |||
Fair value disclosures | |||
Long-term debt, including current portion, fair value | 370,000 | ||
Subordinated debentures | 205,000 | ||
Carrying value | |||
Fair value disclosures | |||
Long-term debt, including current portion | 366,100 | ||
Subordinated debentures | $ 200,000 |
Subsequent Event (Details)
Subsequent Event (Details) | Nov. 17, 2022 $ / shares |
Subsequent Event | |
Subsequent Event | |
Special dividend declared, amount per share | $ 15 |