Dillard's 2013 Annual Report Download - page 7

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1
PART I
ITEM 1. BUSINESS.
Dillard's, Inc. ("Dillard's", the "Company", "we", "us", "our" or "Registrant") ranks among the nation's largest fashion
apparel, cosmetics and home furnishing retailers. The Company, originally founded in 1938 by William T. Dillard, was
incorporated in Delaware in 1964. As of February 1, 2014, we operated 296 Dillard's stores, including 18 clearance centers, and
an Internet store offering a wide selection of merchandise including fashion apparel for women, men and children, accessories,
cosmetics, home furnishings and other consumer goods. The Company also operates a general contracting construction
company, CDI Contractors, LLC and CDI Contractors, Inc. ("CDI"), a portion of whose business includes constructing and
remodeling stores for the Company.
The following table summarizes the percentage of net sales by segment and major product line:
Percentage of Net Sales
Fiscal 2013 Fiscal 2012 Fiscal 2011
Retail operations segment:
Cosmetics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15% 15% 15%
Ladies' apparel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 22 23
Ladies' accessories and lingerie. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 15 14
Juniors' and children's apparel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888
Men's apparel and accessories. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 17 17
Shoes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 16 16
Home and furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 556
99 98 99
Construction segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100% 100% 100%
Additional information regarding our business, results of operations and financial condition, including information
pertaining to our reporting segments, can be found in Management's Discussion and Analysis of Financial Condition and
Results of Operations in Item 7 hereof and in Note 2 of "Notes to Consolidated Financial Statements" in Item 8 hereof.
We operate retail department stores in 29 states, primarily in the southwest, southeast and midwest regions of the United
States. Most of our stores are located in suburban shopping malls and open-air centers. Customers may also purchase our
merchandise on-line at our website, www.dillards.com, which features on-line gift registries and a variety of other services.
Our retail merchandise business is conducted under highly competitive conditions. Although we are a large regional
department store, we have numerous competitors at the national and local level that compete with our individual stores,
including specialty, off-price, discount and Internet retailers. Competition is characterized by many factors including location,
reputation, merchandise assortment, advertising, price, quality, operating efficiency, service and credit availability. We believe
that our stores are in a strong competitive position with regard to each of these factors. Other retailers may compete for
customers on some or all of these factors, or on other factors, and may be perceived by some potential customers as being
better aligned with their particular preferences.
Our merchandise selections include, but are not limited to, Dillard's lines of exclusive brand merchandise such as Antonio
Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Dillard's exclusive brands/private label merchandise
program provides benefits for Dillard's and our customers. Our customers receive fashionable, higher quality product often at a
savings compared to national brands. Dillard's private label merchandise program allows us to ensure Dillard's high standards
are achieved, while minimizing costs and differentiating our merchandise offerings from other retailers.
We have made a significant investment in our trademark and license portfolio, in terms of design function, advertising,
quality control and quick response to market trends in a quality manufacturing environment. Dillard's trademark registrations
are maintained for as long as Dillard's holds the exclusive right to use the trademarks on the listed products.