Dillard’s Q1 net income slips amidst ‘continued challenging sales environment’

Little Rock-based retailer Dillard’s reported lower revenue and profits in its first quarter earnings report released Thursday (May 16).

For the 13 weeks ended May 4, 2024, Dillard’s reported revenue of $1.549 billion amid net income of $180 million. One year ago, the company reported revenue of $1.584 billion and quarterly profits of $201.5 million.

Quarterly earnings per share was $11.09 compared to $11.85 a year ago.

“While the consumer environment remained challenging, we focused on profitable sales by offering interesting product combined with inventory control. As a result, our retail gross margin was 46.2% and inventory was down 2%. For the first time in our history, we reported cash and short-term investments exceeding $1 billion,” said Dillard’s Chief Executive Officer William T. Dillard, II.

Other highlights of the first quarter included:

• Comparable store sales decreased 2%;
• Retail gross margin of 46.2% of sales compared to 45.6% of sales one year ago;
• Operating expenses were $426.7 million (27.5% of sales) compared to $406.4 million (25.7% of sales); and
• Ending inventory decreased 2% year over year.

Dillard’s described the quarter as a “continued challenging sales environment.” Officials said cosmetics was the strongest performing merchandise category, and men’s apparel and accessories was the weakest performing category.

Dillard’s operates 274 stores, including 29 clearance centers, spanning 30 states as well as an online retail operation.

The company’s stock opened trading Thursday at $457.57 per share. Over the past 52 weeks, the company’s shares have traded between a low of $272.58 and a high of $476.48.