Dillard's, Inc. has recently released its 10-Q report, revealing key insights into the company's financial performance. Dillard's operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States, offering fashion apparel for men, women, and children, accessories, cosmetics, home furnishings, and other consumer goods through dillards.com, an Internet store, and clearance centers. The company also engages in general contracting construction activities. According to the 10-Q report, for the three months ended August 2, 2025, Dillard's reported net sales of $1.51 billion, representing a 1% increase from the same period in 2024.
Management's Discussion and Analysis of Financial Condition and Results of Operations highlighted several key points. Dillard's reported a 1% increase in total retail sales, excluding construction sales, and a 1% increase in sales in comparable stores. The retail gross margin was 38.1% of sales, compared to 39.1% in the prior year. Net income for the three months ended August 2, 2025, was $72.8 million ($4.66 per share), compared to $74.5 million ($4.59 per share) for the same period in 2024. The company also reported net cash provided by operating activities of $319.4 million for the six months ended August 2, 2025, compared to $176.0 million for the prior year six-month period.
In terms of sales trends, the company reported a 1% increase in retail store sales, with the cosmetics, ladies' accessories and lingerie, and juniors' and children's apparel categories showing positive growth. However, sales in home and furniture, and cosmetics decreased. The number of sales transactions decreased by 2%, while the average dollars per sales transaction increased by 3% for the three months ended August 2, 2025, compared to the same period in 2024.
The construction segment also saw growth, with net sales from this segment increasing by approximately 5% for the three months ended August 2, 2025, compared to the same period in 2024. Additionally, the remaining performance obligations related to executed construction contracts totaled $129.5 million as of August 2, 2025.
For the six months ended August 2, 2025, Dillard's reported net sales of $3.04 billion, a slight increase from the same period in 2024. The company noted a 2% decrease in the number of sales transactions, while the average dollars per sales transaction increased by 2% for the six months ended August 2, 2025, compared to the same period in 2024.
The 10-Q report also highlighted that service charges and other income decreased by $2.5 million for the three months ended August 2, 2025, compared to the same period in 2024, primarily due to decreases in finance charges and late fees resulting from lower average net receivables. Similarly, for the six months ended August 2, 2025, service charges and other income decreased by $8.2 million compared to the same period in 2024.
As a result of these announcements, the company's shares have moved 0.99% on the market, and are now trading at a price of $576.96. For more information, read the company's full 10-Q submission here.
