Dillard’s Q1 Retail Performance
In a challenging retail environment, Dillard’s reported a slight contraction in retail sales for the first quarter. As of May 4th, quarterly sales decreased by 1% compared to a 2% decrease in the previous year.
The home and furniture category, while not the strongest performer (cosmetics took the lead), also did not rank as the weakest (men’s apparel and accessories).
The retail gross margin, excluding the company’s CDI construction business, accounted for 46.2% of sales, compared to 45.6% in the same period last year. Home, furniture, women’s accessories, and intimate apparel saw a slight increase in gross margin, while men’s apparel and accessories, women’s apparel, and teenage and children’s clothing experienced a small growth. Shoes and cosmetics maintained relatively stable gross margins.
CEO William T. Dillard II stated that during this quarter, the company focused on profitable sales and inventory control. As a result, the retail gross margin reached 46.2%, and inventory decreased by 2%. The reported cash and short-term investments surpassed $1 billion for the first time in the company’s history.
Including CDI, the company’s total revenue declined by 2% to $1.55 billion. Net income dropped by 11% to $180 million, which translates to $11.09 per share but exceeded expectations.
During this quarter, Dillard’s opened its first store in South Dakota, marking its entry into the 30th operating state. It also announced the upcoming closure of its clearance center at Eastwood Mall in Niles, Ohio, with an expected closure date in July.
As of the end of the quarter, the company operated 274 Dillard’s stores, including 29 clearance centers.
