Dillard’s saw its net income decline slightly in the last quarter of 2020 compared to the same period in 2019. In 4Q 2020, the Little Rock-based retailer had a reported net income of $67 million, while it had $67.7 million in 4Q 2019.
In the past quarter, Dillard’s has had net sales (which includes CDI Contractors operations) of $1.570 billion, a drop from 2019’s net sales of $1.923 billion in the same quarter. Meanwhile, total retail sales were $1.521 billion and $1.879 billion for 4Q 2020 and 4Q 2019, respectively.
Despite the decreased net income and sales, Dillard’s CEO William T. Dillard III highlighted the company’s fourth quarter report as “encouraging,” making note of the company’s improved retail gross margin and decreased operating expenses.
“Our year-long efforts to control inventory and expenses and preserve liquidity have resulted in encouraging fourth quarter results. We ended the year with $360 million in cash and inventory down 26%. Retail gross margin improved 171 basis points, and operating expenses declined $123 million. Our team’s ability to adjust to the changing circumstances throughout the year made us proud. We are optimistic increased vaccinations, warmer weather and fresh fashions will motivate Americans to shop this spring.”
Dillard’s cut its general and administrative operating expenses from $458.6 million in 4Q 2019 to $335.8 million in 4Q 2020, a decrease of $122.8 million. While expenses accounted for 23.8 percent of sales in 2019’s fourth quarter, expenses were reduced to 21.4 percent of sales in 2020’s fourth quarter. A significant portion of the expense decline – approximately 30 percent – can be attributed to payroll decreases due to reduced operating hours.
The retail operating expenses in 4Q 2020 were $334.3 million, a decline of $122.4 million, from 4Q 2019’s $456.7 million operating expenses.
In past year, Dillard’s suffered a net loss of $71.7 million with a net operating loss position for the fiscal year. The company reported a net income of $111.1 million in the previous year.
Net sales for 2020 dropped to $4.301 billion after reaching $6.204 billion in 2019. Dillard’s total retail sales in 2020 were $4.160 billion compared to $6.012 billion in 2019.