Dillard's, Inc. has recently released its 10-Q report, revealing a mixed first quarter performance against economic uncertainty. The company operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States, offering fashion apparel, accessories, cosmetics, home furnishings, and other consumer goods through its online store and clearance centers. It also engages in general contracting construction activities.
In the first quarter of the fiscal year, Dillard's reported a 2% decline in total retail sales compared to the prior year, with sales in comparable stores declining by 1%. The retail gross margin was 45.5% of sales, lower than the 46.2% in the prior year. The company reported a net income of $163.8 million ($10.39 per share) compared to $180.0 million ($11.09 per share) for the same period last year. Net cash provided by operating activities was $232.6 million for the three months ended May 3, 2025, compared to $244.4 million for the prior year first quarter. As of May 3, 2025, the company had working capital of $1,621.3 million.
Key performance indicators for the three months ended May 3, 2025, showed a decline in net sales, retail store sales trend, and comparable retail store sales trend. The company operated 272 Dillard’s stores, including 28 clearance centers, and an internet store as of May 3, 2025.
The company's gross margin decreased to 43.9% from 44.6% during the three months ended May 3, 2025, compared to the same period in 2024. Selling, general and administrative expenses increased to 27.6% of sales during the three months ended May 3, 2025 from 27.5% of sales during the same period in 2024. Payroll and payroll-related expenses decreased by $4.3 million.
Sales decreased in various product categories, with a significant decline in home and furniture sales, while sales in shoes, ladies’ apparel, and cosmetics also decreased moderately. However, sales in juniors’ and children’s apparel increased moderately.
The company's construction segment reported an increase in net sales of approximately 8% during the three months ended May 3, 2025, compared to the same period in 2024. Remaining performance obligations related to executed construction contracts totaled $173.9 million as of May 3, 2025.
The company noted that the seasonality of its business, like many other retailers, leads to a significant portion of sales and income being realized during the last quarter of its fiscal year due to the holiday season. The market has reacted to these announcements by moving the company's shares 1.98% to a price of $402.51. For the full picture, make sure to review DILLARD'S, INC.'s 10-Q report.
