| ● | a net $13.7 million ($0.80 per share) income tax benefit due to the release of valuation allowances primarily related to state net operating loss carryforwards |
Sales – Fourth Quarter
Net sales for the 14 weeks ended February 3, 2024 and 13 weeks ended January 28, 2023 were $2.124 billion and $2.127 billion, respectively. Net sales includes the operations of the Company’s construction business, CDI Contractors, LLC (“CDI”).
Total retail sales (which excludes CDI) for the 14 weeks ended February 3, 2024 and 13 weeks ended January 28, 2023 were $2.057 billion and $2.069 billion, respectively. Total retail sales decreased 5% for the 13-week period ended January 27, 2024 compared to the 13-week period ended January 28, 2023. Sales in comparable stores for that same period decreased 5%. The Company noted a continued challenging sales environment during the fourth quarter. Cosmetics was the strongest performing category followed by home and furniture. Juniors’ and children’s apparel was the weakest category followed by ladies’ accessories and lingerie and ladies’ apparel.
Gross Margin – Fourth Quarter
Consolidated gross margin for the 14 weeks ended February 3, 2024 was 36.6% of sales compared to 37.7% of sales for the 13 weeks ended January 28, 2023.
Retail gross margin (which excludes CDI) for the 14 weeks ended February 3, 2024 was 37.7% of sales compared to 38.7% of sales for the 13 weeks ended January 28, 2023. Gross margin increased moderately in home and furniture and was essentially flat in cosmetics, ladies’ accessories and lingerie and ladies’ apparel. Gross margin decreased slightly in shoes and decreased moderately in juniors’ and children’s apparel and men’s apparel and accessories.
Inventory decreased 2% at February 3, 2024 compared to January 28, 2023.
Selling, General & Administrative Expenses – Fourth Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 14 weeks ended February 3, 2024 were $476.7 million (22.4% of sales) compared to $458.4 million (21.6% of sales) for the 13 weeks ended January 28, 2023. The increase in operating expenses of $18.3 million is primarily due to the additional week of operations in the fourth quarter of fiscal year 2023.
Highlights of the Fiscal Year (compared to the prior fiscal year):
•Total retail sales decreased 5% for the 52-week to 52-week period
| • | Comparable store sales decreased 4% for the 52-week to 52-week period |
| • | Net income of $738.8 million compared to $891.6 million |
| • | Earnings per share of $44.73 compared to $50.81 |
| • | Retail gross margin of 41.8% of sales compared to 43.0% of sales |
| • | Operating expenses were $1,717.4 million (25.4% of sales) compared to $1,674.3 million (24.4% of sales) |