Dillard's 2015 Annual Report Download - page 22

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16
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
Dillard's, Inc. operates 297 retail department stores spanning 29 states and an Internet store. The Company also operates a
general contractor, CDI, a portion of whose business includes constructing and remodeling stores for the Company, which is a
reportable segment separate from our retail operations.
In accordance with the National Retail Federation fiscal reporting calendar and our bylaws, the fiscal 2015, 2014 and
2013 reporting periods presented and discussed below ended January 30, 2016, January 31, 2015 and February 1, 2014,
respectively, and each contained 52 weeks.
EXECUTIVE OVERVIEW
Fiscal 2015
The Company's performance during fiscal 2015 was difficult. Sales were less than planned, but the Company worked to
control inventory during an unusually competitive environment. Comparable retail sales decreased 2% over last year, and gross
profit from retail operations decreased 107 basis points of net retail sales as a result of increased markdowns. Consolidated
selling, general and administrative expenses increased 19 basis points of net sales, primarily as a result of increased selling
payroll, which was partially offset by decreased advertising expense. Net income decreased to $269.4 million, or $6.91 per
share, during fiscal 2015 from $331.9 million, or $7.79 per share, in the prior year.
Included in net income for fiscal 2015 is a pre-tax gain of $12.6 million ($8.1 million after tax or $0.21 per share) related
to the sale of four retail store locations.
Included in net income for fiscal 2014 is a $5.9 million pretax gain ($3.8 million after tax or $0.09 per share) related to
the sale of a retail store location.
During fiscal 2015, the Company repurchased $500 million, or 5.3 million shares, of Class A Common Stock under the
November 2014 Stock Plan, with no authorization remaining at January 30, 2016.
As of January 30, 2016, we had working capital of $917.7 million (including cash and cash equivalents of $202.9
million) and $814.8 million of total debt outstanding, excluding capital lease obligations, with no scheduled maturities until late
fiscal 2017. We operated 273 Dillard's locations, 24 clearance centers and one Internet store as of January 30, 2016.