Dillard's 2015 Annual Report Download - page 29

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23
Exclusive Brand Merchandise
Sales penetration of exclusive brand merchandise for fiscal years 2015, 2014 and 2013 was 21.7%, 21.6% and 21.5% of
total net sales, respectively.
Service Charges and Other Income
Dollar Change Percent Change
(in millions of dollars)
Fiscal
2015
Fiscal
2014
Fiscal
2013 2015 - 2014 2014 - 2013 2015 - 2014 2014- 2013
Service charges and other income:
Retail operations segment
Income from Wells Fargo Alliance and
former Synchrony Alliance. . . . . . . . . . $ 105.4 $ 111.6 $ 113.1 $ (6.2)$ (1.5) (5.6)% (1.3)%
Leased department income. . . . . . . . . . . 7.2 8.7 9.2 (1.5)(0.5) (17.2) (5.4)
Shipping and handling income. . . . . . . . 26.1 22.3 20.3 3.8 2.0 17.0 9.9
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.7 15.6 17.2 2.1 (1.6) 13.5 (9.3)
156.4 158.2 159.8 (1.8)(1.6) (1.1) (1.0)
Construction segment . . . . . . . . . . . . . . . . . 2.5 0.9 0.3 1.6 0.6 177.8 200.0
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 158.9 $ 159.1 $ 160.1 $ (0.2)$ (1.0) (0.1)% (0.6)%
2015 Compared to 2014
Service charges and other income is composed primarily of income from the Wells Fargo Alliance and former Synchrony
Alliance. Income from the alliances decreased $6.2 million in fiscal 2015 compared to fiscal 2014 primarily due to increased
credit losses partially resulting from the portfolio transition.
2014 Compared to 2013
Income from the alliances decreased $1.5 million in fiscal 2014 compared to fiscal 2013 primarily due to increased credit
losses and the discontinuation of a credit product previously offered by Synchrony partially offset by increases in finance
charge income.
Gross Profit
(in thousands of dollars) Fiscal 2015 Fiscal 2014 Fiscal 2013
Gross profit:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,237,077 $ 2,342,109 $ 2,301,271
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,744 6,340 6,661
Total gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,244,821 $ 2,348,449 $ 2,307,932
Gross profit as a percentage of segment net sales:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.0% 36.1% 35.7%
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7 4.9 7.2
Total gross profit as a percentage of net sales
. . . . . . . . . . . . . . . . . . . . . . . 34.0 35.5 35.3
2015 Compared to 2014
Gross profit as a percentage of net sales declined 144 basis points of sales during fiscal 2015 compared to fiscal 2014.
Gross profit from retail operations declined 107 basis points of segment net sales during the same periods primarily due to
increased markdowns.
During fiscal 2015, gross margin declined slightly in juniors' and children's apparel and in men's apparel and accessories.
Gross margin declined moderately in ladies' accessories and lingerie and home and furniture. Gross margin was essentially flat
in cosmetics, ladies' apparel and shoes.
Gross profit from the construction segment increased $1.4 million but declined, on a percentage basis, by 111 basis points
of segment net sales. The decrease as a percentage of sales was due to lower fee percentages on new larger contracts.