Dillard's, Inc. has recently released its 10-Q report, revealing a decline in total retail sales by 2% and a 1% drop in comparable store sales compared to the prior year's first quarter. The company reported a net income of $163.8 million for the three months ended May 3, 2025, a decrease from $180.0 million for the same period in 2024. Operating 272 Dillard's stores, including 28 clearance centers and an internet store, the company had a working capital of $1,621.3 million and total debt outstanding of $521.6 million as of May 3, 2025.
The retail gross margin was 45.5% of sales, down from 46.2% in the prior year's first quarter. The selling, general, and administrative expenses for the three months ended May 3, 2025, declined by $5.0 million to $421.7 million, representing 27.6% of sales. The company reported a net cash flow of $232.6 million from operating activities for the same period, down from $244.4 million in the prior year's first quarter.
The report also highlighted a 6% increase in inventory at May 3, 2025, compared to May 4, 2024. The company's retail store inventory trend showed a 6% increase, while the annualized retail merchandise inventory turnover was 2.3, down from 2.5 in the previous year's first quarter. The financial report also discussed the seasonality of the company's business, with a significant portion of sales and income realized during the last quarter of the fiscal year due to the holiday season.
Dillard's, Inc. reported a decrease in net sales for the three months ended May 3, 2025, with the retail operations segment declining by $24.7 million, or approximately 2%. Sales in the home and furniture category showed a significant decrease, while sales in shoes, ladies' apparel, and cosmetics also declined moderately. However, the company recorded a moderate increase in sales for juniors' and children's apparel.
Service charges and other income decreased by $5.7 million, primarily due to decreases in finance charges and late fees, as well as increases in credit losses. 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% during the same period in 2024, while decreasing by $5.0 million.
The company also reported a decrease in net interest and debt income by $2.7 million during the three months ended May 3, 2025, primarily due to a decrease in interest. The market has reacted to these announcements by moving the company's shares 1.98% to a price of $402.51. If you want to know more, read the company's complete 10-Q report here.
