Dillard’s Inc. reported second quarter net income of $163.4 million, below the $185.7 million in the same quarter of 2021. But earnings per share of $9.30 was well beyond the consensus estimate of $3.47, which pushed the share price up more than 18% in afternoon trading.
The Little Rock-based specialty retailer posted second quarter revenue of $1.588 billion in Thursday’s (Aug. 11) report, better than the $1.57 billion in the same period of 2021, and also above the consensus estimate of $1.54 billion.
“Business softened in the quarter as we lapped the strongest second quarter in our history. Our first half performance was far better than last year’s with net income up 21%, earnings per share up 44% and gross margin up 240 basis points. We repurchased $412 million of stock during the half versus $171 million last year,” Dillard’s CEO William T. Dillard, II, said in the report.
During the past 52 weeks the share price (NYSE: DDS) has ranged between $416.71 and $167.03. Shares closed at $248.56 on Wednesday, but on Thursday were trading higher than $295 per share – up more than 18% – in early afternoon trading.
Same store sales in the quarter were flat, with the company saying men’s apparel, accessories, and cosmetics were categories with good sales. The weakest category for sales was ladies’ apparel. Inventory value at the end of the second quarter was $1.193 billion, above the $1.112 billion in the same period of 2021.
Net income in the first half of the fiscal year was $414.5 million, up 20.5% compared with the $343.9 million in the same period of 2021. Revenue in the first half of the fiscal year was $3.26 billion, better than the $2.898 billion in the same period of 2021. Same store sales in the first half of the year were up 10%.
With the company’s share price below 52-week highs, the company spent $412.3 million to repurchase shares through the first half of the year. Cash and cash equivalents at the end of the second quarter was $492.9 million, well below the $669.5 million in the same period of 2021.
The company also announced during the quarter the closing of stores in Wichita Falls, Texas, and St. Joseph, Mo. The stores are set to close in the third quarter. Dillard’s has 250 locations, and 29 clearance centers in 29 states.