Dillard's, Inc. has recently released its 10-Q report, revealing a mixed first quarter performance despite economic uncertainty. The company reported a 2% decline in total retail sales and a 1% decline in sales in comparable stores compared to the prior year's first quarter. Net income for the three months ended May 3, 2025, was $163.8 million, down from $180.0 million in the same period in 2024. The company's net cash provided by operating activities also decreased to $232.6 million from $244.4 million in the prior year's first quarter. Dillard's, Inc. operated 272 stores, including 28 clearance centers, and an internet store as of May 3, 2025.
The retail gross margin as a percentage of retail net sales decreased to 45.5% from 46.2% compared to the prior year's first quarter. Selling, general and administrative expenses for the three months ended May 3, 2025, declined to $421.7 million from $426.7 million for the prior year's first quarter. The company reported a 2% increase in retail store inventory compared to the same period in 2024.
Net sales from the retail operations segment decreased by approximately 2%, with sales in home and furniture experiencing a significant decline. The number of sales transactions decreased by 3%, while the average dollars per sales transaction increased by 2%. The company recorded a return asset of $13.9 million and $13.5 million and an allowance for sales returns of $27.4 million and $27.2 million as of May 3, 2025, and May 4, 2024, respectively.
Gross margin decreased to 43.9% from 44.6% during the three months ended May 3, 2025, compared to the same period in 2024. Gross margin from retail operations also decreased to 45.5% from 46.2% during the three months ended May 3, 2025, compared to the same period in 2024. The company closely monitors inflation and potential trade restrictions, including tariffs, which pose a risk to its operations.
Selling, general and administrative expenses (SG&A) increased to 27.6% of sales during the three months ended May 3, 2025, from 27.5% of sales during the three months ended May 4, 2024. SG&A from retail operations increased to 28.6% of sales for the three months ended May 3, 2025, from 28.4% of sales for the same period in 2024.
Net interest and debt income decreased by $2.7 million during the three months ended May 3, 2025, compared to the same period in 2024, primarily due to a decrease in interest. Following these announcements, the company's shares moved 1.98%, and are now trading at a price of $402.51. If you want to know more, read the company's complete 10-Q report here.
