Dillards Financial Statement

Dillard’s Financial Statement Analysis Report By: Henry Gould, Elise Howard, Jackson Chase, David Kloucek. Dillard’s is a large-scale apparel, cosmetic, and fashion retailer located largely in the US. The company prides itself on keeping up with the latest trends and fashion, partnering with exclusive brands such as GB, Roundtree & Yorke, and Daniel Cremieux, bolstering its credibility and popularity within the southern and central US. Known for their affordable prices, large inventory, and omnipresent brick-and-mortar locations, Dillard’s has become a staple among many families looking for a one-stop shop for high-quality clothes and accessories for all. Dillard’s is a part of the fashion industry, which is heavily influenced by changes in

75% of Dillards store associates were women and an astonishing 54% of store associates were non-white. Dillards is also actively shifting its efforts towards eco sustainability alongside most companies in the fashion industry, with a heavy focus on the way they use and reuse materials. Dillard’s mainly generates revenue through its flagship locations, clearance stores, and expansive Internet site that offers all of their available inventory for pick-up and delivery. Dillard’s also owns and operates a contracting construction company, CDI Contractors, for personal renovations and remodels. Revenues from CDI’s construction contracts are generally measured based on the ratio of costs incurred to the total estimated contract costs (the “cost-to-cost method”). It’s important to note that Dillard’s retail operations segment recognizes revenue upon the sale of merchandise to its customers, minus anticipated merchandise returns. Additionally, Dillard’s has a Gift Card Revenue Recognition, in which the Company establishes a liability upon the sale of a gift card that is then relieved and revenue is recognized when gift cards are

Nordstrom expenses their costs to ship orders as a fulfillment activity and commissions from sales are expensed at the point of sale, both of which are recorded in Selling, General, and Administrative Expenses. Looking at FY 2022, Nordstrom generated net earnings of $245 million, a sizable increase from their $178 million in earnings in FY 2021 (See Figure 2). Since COVID-19, Nordstrom has recovered very well and will likely continue to grow with the continuation of full scale operations and physical store expansions. However, in terms of Nordstroms equity, their share price has been quite lackluster over FY 2022, primarily due to increasing labor costs and inventory issues that occurred in late 2021 (See Figure 3). According to The Seattle Times, Nordstrom had struggled in recovering from the pandemic and did not take an aggressive enough approach to reopen stores, causing lackluster sales. Coupled with supply chain issues and an unpreparedness for digital shopping, Nordstrom still hangs in recovery as they try to upgrade their services for the new-age