Dillard's 2013 Annual Report Download - page 30

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24
Exclusive Brand Merchandise
Sales penetration of exclusive brand merchandise for fiscal years 2013, 2012 and 2011 was 21.1%, 21.6% and 21.8% of
total net sales, respectively.
Service Charges and Other Income
Dollar Change Percent Change
(in millions of dollars)
Fiscal
2013
Fiscal
2012
Fiscal
2011 2013 - 2012 2012 - 2011 2013 - 2012 2012 - 2011
Service charges and other income:
Retail operations segment
Income from GE marketing and
servicing alliance . . . . . . . . . . . . . . . . . $ 113.1 $ 107.1 $ 95.8 $ 6.0 $ 11.3 5.6% 11.8%
Leased department income. . . . . . . . . . . 9.2 10.8 10.1 (1.6) 0.7 (14.8) 6.9
Shipping and handling income. . . . . . . . 20.3 19.1 18.4 1.2 0.7 6.3 3.8
Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.2 21.3 16.9 (4.1) 4.4 (19.2) 26.0
159.8 158.3 141.2 1.5 17.1 0.9 12.1
Construction segment . . . . . . . . . . . . . . . . . 0.3 0.1 0.7 0.2 (0.6) 200.0 (85.7)
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 160.1 $ 158.4 $ 141.9 $ 1.7 $ 16.5 1.1% 11.6%
2013 Compared to 2012
Service charges and other income is composed primarily of income from the Alliance with GE. Income from the Alliance
increased $6.0 million in fiscal 2013 compared to fiscal 2012 primarily due to increases in finance charge income.
2012 Compared to 2011
Income from the Alliance increased $11.3 million in fiscal 2012 compared to fiscal 2011 primarily due to increases in
finance charge and late charge fee income and decreased credit losses.
Gross Profit
(in thousands of dollars) Fiscal 2013 Fiscal 2012 Fiscal 2011
Gross profit:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,301,271 $ 2,340,754 $ 2,215,232
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,661 5,307 1,099
Total gross profit. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,307,932 $ 2,346,061 $ 2,216,331
Gross profit as a percentage of segment net sales:
Retail operations segment. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35.7% 36.1% 35.8%
Construction segment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.2 5.1 1.6
Total gross profit as a percentage of net sales
. . . . . . . . . . . . . . . . . . . . . . . 35.3 35.6 35.4
2013 Compared to 2012
Gross profit declined 30 basis points of sales during fiscal 2013 compared to fiscal 2012. Gross profit from retail
operations declined 40 basis points of sales during the same periods due to increased markdowns taken as a result of lower than
anticipated sales partially offset by increased initial markups. Inventory in comparable stores increased 5% as of February 1,
2014 compared to February 2, 2013.
During fiscal 2013, gross margin declined slightly in shoes and home and furniture. Gross margin was essentially flat in
all other product categories.