Sales and profits were down for Dillard’s in fiscal year 2020 as a result of bruising conditions imposed by the COVID-19 pandemic.
The Little Rock-based clothing retailer released its fiscal report on Monday, March 29, showing that the company had $4.30 billion in net sales across all of its divisions, with $4.16 coming from its retail operations and $140.6 million coming from its construction segment. This was down significantly from fiscal year 2019, when Dillard’s reported $6.20 billion in net sales and down further from fiscal year 2018 with $6.35 billion in net sales.
Dillard’s noted that the approximately $1.9 billion decline in net sales was “primarily due to the impact of the COVID-19 pandemic.” The company’s construction division also saw decreased activity, resulting in a decrease of 26.5 percent from 2019 to 2020, or a decrease of $50.7 million.
In fiscal year 2020, the biggest segments of Dillard’s business were the ladies’ apparel and the men’s apparel and accessories divisions. This was followed closely by the ladies’ accessories and lingerie division at 17 percent and both the cosmetics and the shoes division at 15 percent each. Junior’s and children’s apparel accounted for nine percent of Dillard’s net sales – the same as fiscal year 2019 and 2018, while home and furniture accounted for five percent, a slight increase from fiscal year 2019 and 2018 when the division accounted for four percent of net sales. Dillard’s construction segment accounted for three percent of its net sales.
The ladies’ apparel segment, while remaining one of the top two net sales drivers, dropped substantially in fiscal year 2020. The previous year, this division was responsible for 22 percent of Dillard’s net sales
There was a 43.5 percent drop in ladies’ apparel sales from 2019 to 2020, as well as a 25.8 percent drop in sales of ladies’ accessories and lingerie. Junior’s and children’s apparel also suffered a significant drop of 30.5 percent. Both Men’s apparel and accessories, as well as the shoes division dropped by 29.9 percent each.
Gross profits were also down from fiscal year 2019, declining from $1.96 billion to $1.23 billion. The retail division had a gross profit of $1.22 billion in 2020, while the construction segment had gross profits of $8.2 million. The construction division’s gross profits actually improved from 2019.
Looking ahead, the company expects that its liquidity and net sales could continue to be further impacted due to inventory levels and expenses. Dillard’s will be using cash-on-hand, operations cash flow and revolving credit to finance its fiscal year 2021 operations with possible other financing methods being considered.
During the COVID-19 pandemic, Dillard’s began closing its stores on March 19 with all of its 285 retail locations shut down by April 9. All stores were reopened on Jun 2, operating at reduced hours.
Dillard’s has 282 stores, including 32 clearance centers and an Internet store, across 29 states as of Jan. 30, 2021. In Arkansas, Dillard’s has 16 stores with 15 owned and one owned building on leased land. The company has the greatest number of stores in Tennessee, where it has 57 total stores, followed by Florida with 42 stores.
In addition to stores, Dillard’s operates distribution centers in Mabelvale; Gilbert, Ariz.; Valdosta, Ga.; Olathe, Kan.; Salisbury, N.C.; and Fort Worth, Texas. There is also an internet fulfillment center and CDI storage facilities in Maumelle. Both Dillard’s and CDI Contractors have their executive offices in Little Rock.
During 2020, Dillard’s closed multiple store locations, including at Central Mall in Lawton, Okla.; Crossroads Center in Waterloo, Iowa; and North Plains Mall in Clovis, New Mexico, as well as the imminent closure of the Paradise Valley Mall store in Phoenix, Ariz.
Dillard’s also operates CID Contractors LLC, which oversees construction and remodeling for the company. According to the report, Dillard’s has approximately 29,000 associates, with 19,000 full-time, 8,000 part-time and 2,000 limited status.