Cover Page
Cover Page - shares | 3 Months Ended | |
Apr. 30, 2022 | May 28, 2022 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 30, 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 | Q1 | |
Amendment Flag | false | |
Common Stock Class A | ||
Entity Common Stock, Shares Outstanding | 13,537,031 | |
Common Stock Class B | ||
Entity Common Stock, Shares Outstanding | 3,986,233 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 862,173 | $ 716,759 | $ 615,920 |
Accounts receivable | 30,920 | 39,777 | 33,941 |
Merchandise inventories | 1,364,975 | 1,080,178 | 1,306,508 |
Federal and state income taxes | 73,461 | ||
Other current assets | 96,193 | 77,937 | 79,004 |
Total current assets | 2,354,261 | 1,914,651 | 2,108,834 |
Property and equipment (net of accumulated depreciation and amortization of $2,554,485, $2,517,915 and $2,488,446, respectively) | 1,170,265 | 1,190,151 | 1,257,254 |
Operating lease assets | 39,743 | 42,941 | 47,716 |
Deferred income taxes | 29,115 | 28,931 | 24,815 |
Other assets | 65,424 | 68,883 | 69,041 |
Total assets | 3,658,808 | 3,245,557 | 3,507,660 |
Current liabilities: | |||
Trade accounts payable and accrued expenses | 1,163,293 | 886,233 | 1,075,534 |
Current portion of long-term debt | 44,800 | 44,800 | |
Current portion of finance lease liabilities | 527 | ||
Current portion of operating lease liabilities | 11,344 | 11,712 | 12,960 |
Federal and state income taxes | 99,288 | 23,441 | |
Total current liabilities | 1,318,725 | 966,186 | 1,089,021 |
Long-term debt | 321,274 | 321,247 | 365,884 |
Operating lease liabilities | 28,512 | 30,969 | 34,536 |
Other liabilities | 277,964 | 275,937 | 280,522 |
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 | 956,653 | 956,653 | 954,131 |
Accumulated other comprehensive loss | (22,617) | (22,798) | (34,406) |
Retained earnings | 5,275,371 | 5,027,922 | 4,626,243 |
Less treasury stock, at cost | (4,698,314) | (4,511,799) | (4,009,511) |
Total stockholders' equity | 1,512,333 | 1,451,218 | 1,537,697 |
Total liabilities and stockholders' equity | $ 3,658,808 | $ 3,245,557 | $ 3,507,660 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Statement of Financial Position [Abstract] | |||
Property and equipment, accumulated depreciation and amortization | $ 2,554,485 | $ 2,517,915 | $ 2,488,446 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Income Statement [Abstract] | ||
Net sales | $ 1,611,668 | $ 1,328,543 |
Service charges and other income | 31,114 | 28,992 |
Total net sales, service charges and other income | 1,642,782 | 1,357,535 |
Cost of sales | 861,437 | 774,089 |
Selling, general and administrative expenses | 400,773 | 336,614 |
Depreciation and amortization | 46,209 | 46,408 |
Rentals | 5,079 | 5,111 |
Interest and debt expense, net | 10,562 | 11,535 |
Other expense | 1,936 | 4,964 |
Gain on disposal of assets | (7,237) | (24,673) |
Income before income taxes | 324,023 | 203,487 |
Income taxes | 72,930 | 45,240 |
Net income | $ 251,093 | $ 158,247 |
Earnings per share: | ||
Earnings per share - Basic | $ 13.68 | $ 7.25 |
Earnings per share - Diluted | $ 13.68 | $ 7.25 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 251,093 | $ 158,247 |
Other comprehensive income: | ||
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $58 and $168, respectively) | 181 | 529 |
Comprehensive income | $ 251,274 | $ 158,776 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Amortization of retirement plan and other retiree benefit adjustments, tax | $ 58 | $ 168 |
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 | 158,247 | 158,247 | ||||
Other comprehensive income | 529 | 529 | ||||
Purchase of 735,117 and 624,893 shares of treasury stock during the three months ended April 30, 2022 and May 1, 2021, respectively | (58,814) | (58,814) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.15 per share for the three months ended April 30, 2022 and May 1, 2021, respectively | (3,273) | (3,273) | ||||
Balance at May. 01, 2021 | 1,240 | 954,131 | (34,406) | 4,626,243 | (4,009,511) | 1,537,697 |
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 | 251,093 | 251,093 | ||||
Other comprehensive income | 181 | 181 | ||||
Purchase of 735,117 and 624,893 shares of treasury stock during the three months ended April 30, 2022 and May 1, 2021, respectively | (186,515) | (186,515) | ||||
Cash dividends declared: | ||||||
Common Stock, $0.20 and $0.15 per share for the three months ended April 30, 2022 and May 1, 2021, respectively | (3,644) | (3,644) | ||||
Balance at Apr. 30, 2022 | $ 1,240 | $ 956,653 | $ (22,617) | $ 5,275,371 | $ (4,698,314) | $ 1,512,333 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY [Abstract] | ||
Treasury stock, shares acquired | 735,117 | 624,893 |
Common stock, declared dividends per share | $ 0.20 | $ 0.15 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Operating activities: | ||
Net income | $ 251,093 | $ 158,247 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of property and other deferred cost | 46,606 | 47,241 |
Gain on disposal of assets | (7,237) | (24,673) |
Proceeds from insurance | 1,755 | |
Loss on early extinguishment of debt | 2,830 | |
Changes in operating assets and liabilities: | ||
Decrease in accounts receivable | 8,857 | 2,752 |
Increase in merchandise inventories | (284,797) | (218,745) |
Increase in other current assets | (18,468) | (23,113) |
Increase in other assets | (447) | (461) |
Increase in trade accounts payable and accrued expenses and other liabilities | 293,551 | 311,416 |
Increase in income taxes | 76,024 | 45,164 |
Net cash provided by operating activities | 365,182 | 302,413 |
Investing activities: | ||
Purchase of property and equipment and capitalized software | (27,312) | (16,850) |
Proceeds from disposal of assets | 8,090 | 29,276 |
Proceeds from insurance | 4,438 | 1,757 |
Net cash (used in) provided by investing activities | (14,784) | 14,183 |
Financing activities: | ||
Principal payments on long-term debt and finance lease liabilities | (168) | |
Issuance cost of line of credit | (2,733) | |
Cash dividends paid | (3,879) | (3,300) |
Purchase of treasury stock | (201,105) | (54,814) |
Net cash used in financing activities | (204,984) | (61,015) |
Increase in cash and cash equivalents | 145,414 | 255,581 |
Cash and cash equivalents, beginning of period | 716,759 | 360,339 |
Cash and cash equivalents, end of period | 862,173 | 615,920 |
Non-cash transactions: | ||
Accrued capital expenditures | 6,667 | 8,808 |
Accrued purchase of treasury stock | $ 1,643 | 4,000 |
Lease assets obtained in exchange for new operating lease liabilities | $ 3,815 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 30, 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 months ended April 30, 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. |
Accounting Standards
Accounting Standards | 3 Months Ended |
Apr. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting Standards | Note 2. Accounting Standards Recently Issued Accounting Pronouncements Management believes there is no accounting guidance issued but not yet effective that would be relevant to the Company’s current financial statements. |
Business Segments
Business Segments | 3 Months Ended |
Apr. 30, 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 April 30, May 1, 2022 2021 Retail operations segment Cosmetics 14 % 14 % Ladies’ apparel 23 23 Ladies’ accessories and lingerie 13 15 Juniors’ and children’s apparel 11 11 Men’s apparel and accessories 19 17 Shoes 15 15 Home and furniture 3 3 98 98 Construction segment 2 2 Total 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 April 30, 2022 Net sales from external customers $ 1,580,799 $ 30,869 $ 1,611,668 Gross margin 748,444 1,787 750,231 Depreciation and amortization 46,151 58 46,209 Interest and debt expense (income), net 10,569 (7) 10,562 Income (loss) before income taxes 324,142 (119) 324,023 Total assets 3,617,164 41,644 3,658,808 Three Months Ended May 1, 2021 Net sales from external customers $ 1,296,736 $ 31,807 $ 1,328,543 Gross margin 553,001 1,453 554,454 Depreciation and amortization 46,338 70 46,408 Interest and debt expense (income), net 11,550 (15) 11,535 Income before income taxes 203,198 289 203,487 Total assets 3,460,352 47,308 3,507,660 Intersegment construction revenues of $10.0 million and $4.3 million for the three months ended April 30, 2022 and May 1, 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 April 30, January 29, May 1, January 30, (in thousands of dollars) 2022 2022 2021 2021 Contract liabilities $ 71,779 $ 80,421 $ 61,367 $ 68,021 During the three months ended April 30, 2022 and May 1, 2021, the Company recorded $25.2 million and $18.1 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 April 30, January 29, May 1, January 30, (in thousands of dollars) 2022 2022 2021 2021 Accounts receivable $ 20,895 $ 25,912 $ 24,064 $ 25,094 Costs and estimated earnings in excess of billings on uncompleted contracts 3,342 2,847 1,195 450 Billings in excess of costs and estimated earnings on uncompleted contracts 7,511 6,298 4,941 4,685 During the three months ended April 30, 2022 and May 1, 2021, the Company recorded $5.8 million and $3.7 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 $96.1 million, $93.9 million and $54.4 million at April 30, 2022, January 29, 2022 and May 1, 2021, respectively. |
Earnings Per Share Data
Earnings Per Share Data | 3 Months Ended |
Apr. 30, 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 April 30, May 1, 2022 2021 Net income $ 251,093 $ 158,247 Weighted average shares of common stock outstanding 18,351 21,837 Basic and diluted earnings per share $ 13.68 $ 7.25 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 months ended April 30, 2022 and May 1, 2021. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 30, 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 April 30, 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 | 3 Months Ended |
Apr. 30, 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 $1.6 million to the Pension Plan during the three months ended April 30, 2022 and expects to make additional contributions to the Pension Plan of approximately $4.8 million during the remainder of fiscal 2022. The components of net periodic benefit costs are as follows (in thousands): Three Months Ended April 30, May 1, 2022 2021 Components of net periodic benefit costs: Service cost $ 1,019 $ 1,067 Interest cost 1,697 1,437 Net actuarial loss 239 697 Net periodic benefit costs $ 2,955 $ 3,201 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 | 3 Months Ended |
Apr. 30, 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 April 30, 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 | 3 Months Ended |
Apr. 30, 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”). 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 April 30, May 1, 2022 2021 Cost of shares repurchased $ 186,515 $ 58,814 Number of shares repurchased 735 625 Average price per share $ 253.72 $ 94.12 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 April 30, 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 | 3 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9. Income Taxes During the three months ended April 30, 2022 and May 1, 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. |
Leases
Leases | 3 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Note 10. Leases The Company leases retail stores, office space and equipment under operating leases. As of April 30, 2022, January 29, 2022, and May 1, 2021, right-of-use operating lease assets, which are recorded in operating lease assets in the condensed consolidated balance sheets, totaled $39.7 million, $42.9 million and $47.7 million, respectively, and operating lease liabilities, which are recorded in current portion of operating lease liabilities and operating lease liabilities, totaled $39.9 million, $42.7 million and $47.5 million, respectively. In determining our operating lease assets and operating lease liabilities, we apply an incremental borrowing rate to the minimum lease payments within each lease agreement. GAAP requires the use of the rate implicit in the lease whenever that rate is readily determinable; furthermore, if the implicit rate is not readily determinable, a lessee may use its incremental borrowing rate. The incremental borrowing rate is the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. To estimate our specific incremental borrowing rates that align with applicable lease terms, we utilize a model consistent with the credit quality of our outstanding debt instruments. Renewal options of five Contingent rentals on certain leases are based on a percentage of annual sales in excess of specified amounts. Other contingent rentals are based entirely on a percentage of sales. The Company’s operating lease agreements do not contain any material residual value guarantees or material restrictive covenants. The following table summarizes the Company’s operating and finance leases: April 30, January 29, May 1, (in thousands of dollars) Classification - Condensed Consolidated Balance Sheets 2022 2022 2021 Assets Finance lease assets Property and equipment, net (a) $ — $ — $ 185 Operating lease assets Operating lease assets 39,743 42,941 47,716 Total leased assets $ 39,743 $ 42,941 $ 47,901 Liabilities Current Finance Current portion of finance lease liabilities $ — $ — $ 527 Operating Current portion of operating lease liabilities 11,344 11,712 12,960 Noncurrent Finance Finance lease liabilities — — — Operating Operating lease liabilities 28,512 30,969 34,536 Total lease liabilities $ 39,856 $ 42,681 $ 48,023 (a) Lease Cost Three Months Ended (in thousands of dollars) Classification - Condensed Consolidated Statements of Income April 30, 2022 May 1, 2021 Operating lease cost (a) Rentals $ 5,079 $ 5,111 Finance lease cost Amortization of leased assets Depreciation and amortization — 62 Interest on lease liabilities Interest and debt expense, net — 14 Net lease cost $ 5,079 $ 5,187 (a) Maturities of Lease Liabilities (in thousands of dollars) Operating Finance Fiscal Year Leases Leases Total 2022 (excluding the three months ended April 30, 2022) $ 10,317 $ — $ 10,317 2023 10,959 — 10,959 2024 6,289 — 6,289 2025 5,507 — 5,507 2026 3,809 — 3,809 After 2026 10,748 — 10,748 Total minimum lease payments 47,629 — 47,629 Less amount representing interest (7,773) — (7,773) Present value of lease liabilities $ 39,856 $ — $ 39,856 Lease Term and Discount Rate April 30, 2022 Weighted-average remaining lease term Operating leases 5.8 years Weighted-average discount rate Operating leases 6.1 % Other Information Three Months Ended April 30, May 1, (in thousands of dollars) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,485 $ 4,244 Operating cash flows from finance leases — 14 Financing cash flows from finance leases — 168 |
Gain on Disposal of Assets
Gain on Disposal of Assets | 3 Months Ended |
Apr. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
(Gain) Loss on Disposal of Fixed Assets | Note 11. Gain on Disposal of Assets During the three months ended April 30, 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 three months ended May 1, 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 | 3 Months Ended |
Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Note 12. 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 long-term debt and subordinated debentures is based on market prices and is categorized as Level 1 in the fair value hierarchy. The fair value of the Company’s cash and cash equivalents and accounts receivable approximates their carrying values at April 30, 2022 due to the short-term maturities of these instruments. The fair value of the Company’s long-term debt at April 30, 2022 was approximately $398 million. The carrying value of the Company’s long-term debt at April 30, 2022 was $366.1 million. The fair value of the Company’s subordinated debentures at April 30, 2022 was approximately $218 million. The carrying value of the Company’s subordinated debentures at April 30, 2022 was $200 million. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of percentage of net sales by segment and major product line | Three Months Ended April 30, May 1, 2022 2021 Retail operations segment Cosmetics 14 % 14 % Ladies’ apparel 23 23 Ladies’ accessories and lingerie 13 15 Juniors’ and children’s apparel 11 11 Men’s apparel and accessories 19 17 Shoes 15 15 Home and furniture 3 3 98 98 Construction segment 2 2 Total 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 April 30, 2022 Net sales from external customers $ 1,580,799 $ 30,869 $ 1,611,668 Gross margin 748,444 1,787 750,231 Depreciation and amortization 46,151 58 46,209 Interest and debt expense (income), net 10,569 (7) 10,562 Income (loss) before income taxes 324,142 (119) 324,023 Total assets 3,617,164 41,644 3,658,808 Three Months Ended May 1, 2021 Net sales from external customers $ 1,296,736 $ 31,807 $ 1,328,543 Gross margin 553,001 1,453 554,454 Depreciation and amortization 46,338 70 46,408 Interest and debt expense (income), net 11,550 (15) 11,535 Income before income taxes 203,198 289 203,487 Total assets 3,460,352 47,308 3,507,660 |
Schedule of contract liabilities - Retail | Retail April 30, January 29, May 1, January 30, (in thousands of dollars) 2022 2022 2021 2021 Contract liabilities $ 71,779 $ 80,421 $ 61,367 $ 68,021 |
Schedule of accounts receivable, contract assets and liabilities - Construction | Construction April 30, January 29, May 1, January 30, (in thousands of dollars) 2022 2022 2021 2021 Accounts receivable $ 20,895 $ 25,912 $ 24,064 $ 25,094 Costs and estimated earnings in excess of billings on uncompleted contracts 3,342 2,847 1,195 450 Billings in excess of costs and estimated earnings on uncompleted contracts 7,511 6,298 4,941 4,685 |
Earnings Per Share Data (Tables
Earnings Per Share Data (Tables) | 3 Months Ended |
Apr. 30, 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 April 30, May 1, 2022 2021 Net income $ 251,093 $ 158,247 Weighted average shares of common stock outstanding 18,351 21,837 Basic and diluted earnings per share $ 13.68 $ 7.25 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Apr. 30, 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 April 30, May 1, 2022 2021 Components of net periodic benefit costs: Service cost $ 1,019 $ 1,067 Interest cost 1,697 1,437 Net actuarial loss 239 697 Net periodic benefit costs $ 2,955 $ 3,201 |
Stock Repurchase Programs Sched
Stock Repurchase Programs Schedule of Repurchase Program Activity (Tables) | 3 Months Ended |
Apr. 30, 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 April 30, May 1, 2022 2021 Cost of shares repurchased $ 186,515 $ 58,814 Number of shares repurchased 735 625 Average price per share $ 253.72 $ 94.12 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Schedule of operating and finance lease assets and liabilities | April 30, January 29, May 1, (in thousands of dollars) Classification - Condensed Consolidated Balance Sheets 2022 2022 2021 Assets Finance lease assets Property and equipment, net (a) $ — $ — $ 185 Operating lease assets Operating lease assets 39,743 42,941 47,716 Total leased assets $ 39,743 $ 42,941 $ 47,901 Liabilities Current Finance Current portion of finance lease liabilities $ — $ — $ 527 Operating Current portion of operating lease liabilities 11,344 11,712 12,960 Noncurrent Finance Finance lease liabilities — — — Operating Operating lease liabilities 28,512 30,969 34,536 Total lease liabilities $ 39,856 $ 42,681 $ 48,023 (a) |
Schedule of lease cost | Lease Cost Three Months Ended (in thousands of dollars) Classification - Condensed Consolidated Statements of Income April 30, 2022 May 1, 2021 Operating lease cost (a) Rentals $ 5,079 $ 5,111 Finance lease cost Amortization of leased assets Depreciation and amortization — 62 Interest on lease liabilities Interest and debt expense, net — 14 Net lease cost $ 5,079 $ 5,187 (a) |
Schedule of operating lease maturities | (in thousands of dollars) Operating Finance Fiscal Year Leases Leases Total 2022 (excluding the three months ended April 30, 2022) $ 10,317 $ — $ 10,317 2023 10,959 — 10,959 2024 6,289 — 6,289 2025 5,507 — 5,507 2026 3,809 — 3,809 After 2026 10,748 — 10,748 Total minimum lease payments 47,629 — 47,629 Less amount representing interest (7,773) — (7,773) Present value of lease liabilities $ 39,856 $ — $ 39,856 |
Schedule of lease term and discount rate | April 30, 2022 Weighted-average remaining lease term Operating leases 5.8 years Weighted-average discount rate Operating leases 6.1 % |
Schedule of other lease information | Three Months Ended April 30, May 1, (in thousands of dollars) 2022 2021 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 3,485 $ 4,244 Operating cash flows from finance leases — 14 Financing cash flows from finance leases — 168 |
Business Segments (Details)
Business Segments (Details) $ in Thousands | 3 Months Ended | |||
Apr. 30, 2022USD ($)segment | May 01, 2021USD ($) | Jan. 29, 2022USD ($) | Jan. 30, 2021USD ($) | |
Business Segments | ||||
Number of Reportable Segments | segment | 2 | |||
Concentration Risk, Percentage | 100.00% | 100.00% | ||
Net sales from external customers | $ 1,611,668 | $ 1,328,543 | ||
Gross margin | 750,231 | 554,454 | ||
Depreciation and amortization | 46,209 | 46,408 | ||
Interest and debt expense (income), net | 10,562 | 11,535 | ||
Income (loss) before income taxes | 324,023 | 203,487 | ||
Total assets | 3,658,808 | 3,507,660 | $ 3,245,557 | |
Contract liabilities | 71,779 | 61,367 | 80,421 | $ 68,021 |
Contract liabilities, revenue recognized | 25,200 | 18,100 | ||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||
Accounts Receivable, Construction Segment | 20,895 | 24,064 | 25,912 | 25,094 |
Costs and estimated earnings in excess of billings on uncompleted contracts, construction segment | 3,342 | 1,195 | 2,847 | 450 |
Billings in excess of costs and estimated earnings on uncompleted contracts, construction segment | 7,511 | 4,941 | 6,298 | $ 4,685 |
Revenue Recognized, previously recorded in Billings in excess of costs and estimated earnings, construction segment | 5,800 | 3,700 | ||
Revenue, Remaining Performance Obligation, Amount, construction segment | $ 96,100 | 54,400 | $ 93,900 | |
Retail operations | ||||
Business Segments | ||||
Number of Reportable Segments | segment | 1 | |||
Number of store formats | segment | 1 | |||
Net sales from external customers | $ 1,580,799 | 1,296,736 | ||
Gross margin | 748,444 | 553,001 | ||
Depreciation and amortization | 46,151 | 46,338 | ||
Interest and debt expense (income), net | 10,569 | 11,550 | ||
Income (loss) before income taxes | 324,142 | 203,198 | ||
Total assets | $ 3,617,164 | $ 3,460,352 | ||
Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 98.00% | 98.00% | ||
Construction | ||||
Business Segments | ||||
Net sales from external customers | $ 30,869 | $ 31,807 | ||
Gross margin | 1,787 | 1,453 | ||
Depreciation and amortization | 58 | 70 | ||
Interest and debt expense (income), net | (7) | (15) | ||
Income (loss) before income taxes | (119) | 289 | ||
Total assets | $ 41,644 | $ 47,308 | ||
Construction | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 2.00% | 2.00% | ||
Intersegment Eliminations | ||||
Business Segments | ||||
Net sales from external customers | $ 10,000 | $ 4,300 | ||
Cosmetics | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 14.00% | 14.00% | ||
Ladies Apparel | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 23.00% | 23.00% | ||
Ladies Accessories and Lingerie | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 13.00% | 15.00% | ||
Juniors and Children's Apparel | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 11.00% | 11.00% | ||
Mens Apparel and Accessories | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 19.00% | 17.00% | ||
Shoes | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 15.00% | 15.00% | ||
Home and Furniture | Retail operations | Product Concentration Risk | Revenue, Product and Service Benchmark | ||||
Business Segments | ||||
Concentration Risk, Percentage | 3.00% | 3.00% |
Earnings Per Share Data - Sched
Earnings Per Share Data - Schedule (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Earnings Per Share [Abstract] | ||
Net income - Basic | $ 251,093 | $ 158,247 |
Net income - Diluted | $ 251,093 | $ 158,247 |
Weighted average shares of common stock outstanding - Basic | 18,351 | 21,837 |
Weighted average shares of common stock outstanding - Diluted | 18,351 | 21,837 |
Earnings per share - Basic | $ 13.68 | $ 7.25 |
Earnings per share - Diluted | $ 13.68 | $ 7.25 |
Earnings Per Share Data - Narra
Earnings Per Share Data - Narrative (Details) - shares | Apr. 30, 2022 | May 01, 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 | Apr. 30, 2022USD ($) |
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 | |
Apr. 30, 2022 | May 01, 2021 | |
Retirement Benefits [Abstract] | ||
Employer contributions to pension plan | $ 1,600 | |
Defined Benefit Plan, Expected Future Benefit Payment, Remainder of Year | 4,800 | |
Components of net periodic benefit costs: | ||
Service cost | 1,019 | $ 1,067 |
Interest cost | 1,697 | 1,437 |
Net actuarial loss | 239 | 697 |
Net periodic benefit costs | $ 2,955 | $ 3,201 |
Revolving Credit Agreement (Det
Revolving Credit Agreement (Details) - USD ($) $ in Millions | 1 Months Ended | |
May 01, 2021 | Apr. 30, 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 | 50.00% | |
Basis spread on variable rate, condition two | 1.50% | |
Quarterly availability, percentage of commitment fee minimum for condition two | 50.00% | |
Commitment fee for unused borrowings, condition one | 0.30% | |
Unused borrowings, percentage of total commitment maximum for condition one | 35.00% | |
Commitment fee for unused borrowings, condition two | 0.25% | |
Unused borrowings, percentage of total commitment minimum for condition two | 35.00% | |
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 | ||||
Apr. 30, 2022 | May 01, 2021 | Feb. 26, 2022 | May 29, 2021 | Mar. 31, 2018 | |
Stock repurchase programs | |||||
Cost of shares repurchased | $ 186,515 | $ 58,814 | |||
Number of shares repurchased | 735,117 | 624,893 | |||
Average price per share | $ 253.72 | $ 94.12 | |||
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 | $ 425,500 | ||||
February 2022 Stock Plan | Common Stock Class A | Maximum | |||||
Stock repurchase programs | |||||
Stock Repurchase Program, Authorized Amount | $ 500,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 39,743 | $ 42,941 | $ 47,716 |
Operating lease liability | $ 39,856 | $ 42,700 | $ 47,500 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal options | 5 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Renewal options | 10 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Assets | |||
Finance lease assets | $ 185 | ||
Operating lease assets | $ 39,743 | $ 42,941 | 47,716 |
Total leased assets | 39,743 | 42,941 | 47,901 |
Current | |||
Current portion of finance lease liabilities | 527 | ||
Operating lease liability | 11,344 | 11,712 | 12,960 |
Noncurrent | |||
Operating lease liability | 28,512 | 30,969 | 34,536 |
Total lease liabilities | $ 39,856 | $ 42,681 | 48,023 |
Accumulated amortization, finance leases | $ 14,400 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Leases [Abstract] | ||
Rentals | $ 5,079 | $ 5,111 |
Finance lease cost | ||
Amortization of leased assets | 62 | |
Interest on lease liabilities | 14 | |
Net lease cost | 5,079 | 5,187 |
Short-term lease cost | 1,200 | 400 |
Variable lease cost | $ 300 | $ 400 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 2021 |
Operating Leases | |||
2022 (excluding the three months ended April 30, 2022) | $ 10,317 | ||
2023 | 10,959 | ||
2024 | 6,289 | ||
2025 | 5,507 | ||
2026 | 3,809 | ||
After 2026 | 10,748 | ||
Total minimum lease payments | 47,629 | ||
Less amount representing interest | (7,773) | ||
Present value of lease liabilities | 39,856 | $ 42,700 | $ 47,500 |
Finance Leases | |||
2022 (excluding the three months ended April 30, 2022) | 0 | ||
2023 | 0 | ||
2024 | 0 | ||
2025 | 0 | ||
2026 | 0 | ||
After 2026 | 0 | ||
Total minimum lease payments | 0 | ||
Less amount representing interest | 0 | ||
Present value of lease liabilities | 0 | ||
Total | |||
2022 (excluding the three months ended April 30, 2022) | 10,317 | ||
2023 | 10,959 | ||
2024 | 6,289 | ||
2025 | 5,507 | ||
2026 | 3,809 | ||
After 2026 | 10,748 | ||
Total minimum lease payments | 47,629 | ||
Less amount representing interest | (7,773) | ||
Present value of lease liabilities | $ 39,856 | $ 42,681 | $ 48,023 |
Leases - Lease Term and Discoun
Leases - Lease Term and Discount Rate (Details) | Apr. 30, 2022 |
Weighted-average remaining lease term | |
Operating leases | 5 years 9 months 18 days |
Weighted-average discount rate | |
Operating leases | 6.10% |
Leases - Other Information (Det
Leases - Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022 | May 01, 2021 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 3,485 | $ 4,244 |
Operating cash flows from finance leases | 14 | |
Financing cash flows from finance leases | $ 168 |
Gain on Disposal of Assets (Det
Gain on Disposal of Assets (Details) $ in Thousands | 3 Months Ended | |
Apr. 30, 2022USD ($)store | May 01, 2021USD ($)store | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Proceeds from disposal of assets | $ 8,090 | $ 29,276 |
Gain on disposal of assets | $ 7,237 | $ 24,673 |
Number of former retail stores sold | store | 1 | 3 |
Fair Value Disclosures (Details
Fair Value Disclosures (Details) - USD ($) $ in Thousands | Apr. 30, 2022 | Jan. 29, 2022 | May 01, 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 | 398,000 | ||
Subordinated debentures | 218,000 | ||
Carrying value | |||
Fair value disclosures | |||
Long-term debt, including current portion | 366,100 | ||
Subordinated debentures | $ 200,000 |