Dillard's 2015 Annual Report Download - page 8

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We have developed a knowledge of each of our trade areas and customer bases for our stores. This knowledge is
enhanced through regular store visits by senior management and merchandising personnel and through the use of on-line
merchandise information and is supported by our regional merchandising offices. We will continue to use existing technology
and research to edit merchandise assortments by store to meet the specific preference, taste and size requirements of each local
operating area.
Certain departments in our stores are licensed to independent companies in order to provide high quality service and
merchandise where specialization, focus and expertise are critical. The licensed departments vary by store to complement our
own merchandising departments. The principal licensed department is an upscale women's apparel vendor in certain stores. The
terms of the license agreements typically range between three and five years with one year renewals and require the licensee to
pay for fixtures and to provide their own employees. We regularly evaluate the performance of the licensed departments and
require compliance with established customer service guidelines.
Synchrony Financial ("Synchrony"; formerly GE Consumer Finance) owned and managed Dillard's private label credit
cards, including credit cards co-branded with American Express (collectively "private label cards"), under a long-term
marketing and servicing alliance ("Synchrony Alliance") that expired in November 2014. Following this scheduled expiration,
Wells Fargo Bank, N.A. ("Wells Fargo") purchased the Dillard's private label card portfolio from Synchrony and began
managing Dillard's private label cards under a new 10-year agreement ("Wells Fargo Alliance"). Under the Wells Fargo
Alliance, Wells Fargo establishes and owns private label card accounts for our customers, retains the benefits and risks
associated with the ownership of the accounts, provides key customer service functions, including new account openings,
transaction authorization, billing adjustments and customer inquiries, receives the finance charge income and incurs the bad
debts associated with those accounts. Pursuant to the Wells Fargo Alliance, we receive on-going cash compensation from Wells
Fargo based upon the portfolio's earnings. The compensation earned on the portfolio is determined monthly and has no recourse
provisions. We participate in the marketing of the private label cards and accept payments on the private label cards in our
stores as a convenience to customers who prefer to pay in person rather than by paying online or mailing their payments to
Wells Fargo. The Wells Fargo Alliance expires in fiscal 2024.
We seek to expand the number and use of the private label cards by, among other things, providing incentives to sales
associates to open new credit accounts, which generally can be opened while a customer is visiting one of our stores.
Customers who open accounts are rewarded with discounts on future purchases. Private label card customers are sometimes
offered private shopping nights, direct mail catalogs, special discounts and advance notice of sale events. Wells Fargo maintains
the loyalty program that rewards customers for private label card usage.
Our earnings depend to a significant extent on the results of operations for the last quarter of our fiscal year. Due to
holiday buying patterns, sales for that period average approximately one-third of annual sales.
As of January 30, 2016, we employed approximately 40,000 full-time and part-time associates, of which approximately
47% were part-time. The number of associates varies during the year, especially during peak seasonal selling periods.
We purchase merchandise from many sources and do not believe that we are dependent on any one supplier. We have no
long-term purchase commitments or arrangements with any of our suppliers, but we consider our relationships to be strong and
mutually beneficial.
Our fiscal year ends on the Saturday nearest January 31 of each year. Fiscal years 2015, 2014 and 2013 ended January 30,
2016, January 31, 2015 and February 1, 2014, respectively, and each contained 52 weeks.
The information contained on our website is not incorporated by reference into this Annual Report on Form 10-K (this
"Annual Report") and should not be considered to be a part of this Form 10-K. Our annual report on Form 10-K, quarterly
reports on Form 10-Q, current reports on Form 8-K, statements of changes in beneficial ownership of securities on Form 4 and
Form 5 and amendments to those reports filed or furnished pursuant to Section 13(a), 15(d) or 16 of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), as applicable, are available free of charge (as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the SEC) on the Dillard's, Inc. website: www.dillards.com.
We have adopted a Code of Conduct and Corporate Governance Guidelines, as required by the listing standards of the
New York Stock Exchange and the rules of the SEC. We have posted on our website our Code of Conduct, Corporate
Governance Guidelines, Social Accountability Policy, our most recent Social Accountability Report and committee charters for
the Audit Committee of the Board of Directors and the Stock Option and Executive Compensation Committee of the Board of
Directors.
Our corporate offices are located at 1600 Cantrell Road, Little Rock, Arkansas 72201, telephone: [phone].