Dillard's 2010 Annual Report Download - page 28

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2010 Compared to 2009
Net sales from the retail operations segment increased $130.1 million or 2% during fiscal 2010 as
compared to fiscal 2009 while sales in comparable stores improved 3%. Sales of shoes were up
significantly, and sales of ladies’ apparel and accessories, men’s apparel and accessories and juniors’
and children’s apparel were up moderately. Sales of cosmetics were flat while sales in the home and
furniture category were down moderately.
The number of sales transactions increased 1% over the prior year, and the average dollars per
sales transaction increased slightly.
Net sales from the construction segment decreased $104.1 million or 51% during fiscal 2010 as
compared to fiscal 2009 primarily because the weak recovery of the United States economy continues
to have a negative impact on demand for construction projects in private industry.
We continue to believe that in light of recent signs of modest economic improvement, we may see
some sales growth in the retail operations segment during the coming months; however, there is no
guarantee of improved sales performance. Any further deterioration in the United States economy
could have an adverse effect on consumer confidence and consumer spending habits, which could result
in reduced customer traffic and comparable store sales, higher inventory levels and markdowns, and
lower overall profitability.
2009 Compared to 2008
Net sales from the retail operations segment decreased $852.6 million or 13% during fiscal 2009 as
compared to fiscal 2008 while sales in comparable stores declined 10%. All merchandise categories
experienced significant sales declines, with the most noted decline in the home and furniture category.
The net sales decrease reflected a 16% decrease in the number of sales transactions while the
average dollars per sales transaction increased approximately 4%.
Exclusive Brand Merchandise
Sales penetration of exclusive brand merchandise for fiscal years 2010, 2009 and 2008 was 22.7%,
23.8% and 24.0% of total net sales, respectively.
Service Charges and Other Income
Dollar Change Percent Change
Fiscal Fiscal Fiscal
(in millions of dollars) 2010 2009 2008 2010 - 2009 2009 - 2008 2010 - 2009 2009 - 2008
Service charges and other income:
Retail operations segment
Income from GE marketing and
servicing alliance ........... $ 84.7 $ 88.7 $109.7 $(4.0) $(21.0) (4.5)% (19.1)%
Leased department income ..... 10.0 10.8 13.8 (0.8) (3.0) (7.4) (21.7)
Shipping and handling income . . . 17.2 15.4 15.7 1.8 (0.3) 11.7 (1.9)
Visa Check/Mastermoney
Antitrust settlement proceeds . . 0.4 5.7 0.4 (5.3) 5.3 (93.0) +100.0
Hurricane settlement .......... 7.5 — — 7.5 — +100.0 —
Other ..................... 11.1 10.7 17.6 0.4 (6.9) 3.7 (39.2)
130.9 131.3 157.2 (0.4) (25.9) (0.3) (16.5)
Construction segment ........... 1.7 0.4 0.7 1.3 (0.3) +100.0 (42.9)
Total ......................... $132.6 $131.7 $157.9 $ 0.9 $(26.2) 0.7% (16.6)%
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