Dillard's 2013 Annual Report Download - page 31

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25
Gross profit from the construction segment improved $1.4 million (210 basis points of sales). The improvement was due
to improved fee percentages on new contracts.
2012 Compared to 2011
Gross profit improved 20 basis points of sales during fiscal 2012 compared to fiscal 2011. Gross profit from retail
operations improved 30 basis points of sales during the same periods as a result of decreased markdowns and increased
markups. Inventory in comparable stores decreased 1% as of February 2, 2013 compared to January 28, 2012.
During fiscal 2012, gross margin improved moderately in the home and furniture category and improved slightly in
ladies' accessories and lingerie. Gross margin in all other product categories was essentially flat.
Gross profit from the construction segment improved $4.2 million (350 basis points of sales). The improvement was due
to increased revenue and improved fee percentages on new contracts as well as a $1.2 million loss that was recorded during
fiscal 2011 on an electrical contract that was completed during that period.
Selling, General and Administrative Expenses ("SG&A")
(in thousands of dollars) Fiscal 2013 Fiscal 2012 Fiscal 2011
SG&A:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,627,053 $ 1,666,798 $ 1,626,142
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,983 4,728 4,765
Total SG&A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,632,036 $ 1,671,526 $ 1,630,907
SG&A as a percentage of segment net sales:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25.3% 25.7% 26.3%
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 4.6 6.8
Total SG&A as a percentage of net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . 25.0 25.4 26.0
2013 Compared to 2012
SG&A declined $39.5 million or 40 basis points of sales during fiscal 2013 compared to fiscal 2012. The decrease was
most noted in: payroll and payroll related taxes ($12.1 million), primarily due to the 53rd week of fiscal 2012 partially offset by
increases in selling payroll. SG&A also declined due to reduced advertising expenditures ($12.0 million), insurance
($8.5 million) and a $1.5 million pretax credit to pension expense for a gain from a pension curtailment.
2012 Compared to 2011
SG&A improved 60 basis points of sales during fiscal 2012 compared to fiscal 2011 while total SG&A dollars increased
$40.6 million. The dollar increase was most noted in: payroll and payroll related taxes ($42.9 million), primarily due to the
53rd week of fiscal 2012 as well as increases in selling payroll; services purchased ($9.6 million); and insurance ($6.7 million).
These increases were partially offset by decreased net advertising expenditures ($21.5 million).