Dillard's, Inc. has recently released its 10-Q report, providing a detailed insight into the company's financial performance for the period. Dillard's, Inc. operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States, offering fashion apparel for women, men, and children, accessories, cosmetics, home furnishings, and other consumer goods. The company also engages in general contracting construction activities. As of November 2, 2024, the company operated 273 Dillard’s stores, including 28 clearance centers, and an internet store.
In the 10-Q report, Dillard's highlighted that during the third quarter, retail sales declined by 4% compared to the prior year, while the focus was on gross margin performance and expense control. The company reported a net income of $124.6 million ($7.73 per share) for the three months ended November 2, 2024, compared to net income of $155.3 million ($9.49 per share) for the three months ended October 28, 2023. Net cash provided by operating activities was $349.4 million for the nine months ended November 2, 2024, compared to $447.1 million for the prior year nine-month period. As of November 2, 2024, the company had working capital of $1,705.6 million and total debt outstanding of $521.5 million.
Key performance indicators for the three months ended November 2, 2024, showed a 4% decline in net sales, with retail gross margin at 44.5% of sales compared to 45.3% in the prior year. Selling, general and administrative expenses as a percentage of net sales increased to 29.4% from 28.6% in the prior year. The company's total retail store count remained at 273, with retail sales per square foot at $30.
The report also detailed the results of operations, showing a decrease in net sales from the retail operations segment by approximately 4%, with sales in comparable stores also decreasing by approximately 4% during the three months ended November 2, 2024. Additionally, net sales from the construction segment increased by approximately 6% during the same period.
For the nine months ended November 2, 2024, net sales from the retail operations segment decreased by approximately 3%, with sales in comparable stores decreasing by approximately 4%. Net sales from the construction segment decreased by approximately 7% during the same period.
In terms of service charges and other income, the report indicated a decrease of $3.7 million for the three months ended November 2, 2024, compared to the three months ended October 28, 2023. Income from the Citibank Alliance and former Wells Fargo Alliance decreased primarily from increases in credit losses and decreases in finance charge income.
The gross margin for the three months ended November 2, 2024, decreased by 5.3% compared to the same period in the prior year, with the retail operations segment contributing to the majority of the decline.
Today the company's shares have moved 0.5% to a price of $444.1. For the full picture, make sure to review Dillard's's 10-Q report.
