Sales, profits dip for Dillards in 2Q

Sales dipped and profits were lower for Dillard’s, whose CEO expressed disappointment in the Little Rock-based retailer’s performance.

Dillard’s reported Thursday (Aug. 15) revenue of $1.514 billion in the second quarter compared to $1.597 billion in last year’s second quarter. Analysts projected second quarter revenue at $1.53 billion.

Net income tumbled 43% from $131.5 million a year ago to $74.5 million in the latest quarter ended August 3, 2024. Earnings per share was $4.59, below the consensus estimate of $5.97 and well below last year’s second quarter earnings per share of $7.98.

“We are disappointed with our weak performance in the second quarter,” said Dillard’s Chief Executive Officer William T. Dillard, II. “While the consumer environment remained challenged, our expenses were up, squeezing our profitability. We are working to address this. We ended the quarter with over $1 billion in cash and short-term investments.”

Financial highlights of the second quarter include:

• Total retail sales decreased 5%;
• Comparable store sales decreased 5%;
• Retail gross margin of 39.1% of sales compared to 40.4% of sales;
• Operating expenses were $433.6 million compared to $412.6 million a year ago.

Dillard’s said cosmetics was the strongest performing merchandise category, with the weakest performances noted in men’s apparel and accessories and shoes.

Consolidated gross margin for the 13 weeks ended August 3, 2024 was 37.6% of sales compared to 38.8% of sales for the 13 weeks ended July 29, 2023.

Dillard’s closed its Eastwood Mall Clearance Center in Niles, Ohio during the quarter.

The company operates 273 Dillard’s stores, including 28 clearance centers, spanning 30 states, and an online store at dillards.com.

Shares of Dillard’s stock (NYSE: DDS) closed Wednesday at $390.96. The company’s stock has traded between a low of $286.39 per share and a high of $476.48 per share over the last year.