Dillard's, Inc. Reports First Quarter Results

Published: 2025-05-16 10:51:18 ET DDS

Published on 05/16/2025 at 10:51

LITTLE ROCK, Ark- Dillard's, Inc. (NYSE: DDS) (the 'Company' or 'Dillard's') announced operating results for the 13 weeks ended May 3, 2025. This release contains certain forward-looking statements. Please refer to the Company's cautionary statements included below under 'Forward-Looking Information.'

Dillard's Chief Executive Officer William T. Dillard, II stated, 'We turned in a relatively good first quarter in light of the prevailing economic uncertainty. We kept expenses under control and reported a healthy gross margin. After repurchasing $98 million in stock, we had $1.2 billion in cash and short-term investments remaining.'

Highlights of the First Quarter (compared to the prior year first quarter):

Total retail sales decreased 2%

Comparable store sales decreased 1%

Net income of $163.8 million compared to $180.0 million

Earnings per share of $10.39 compared to $11.09

Retail gross margin of 45.5% of sales compared to 46.2% of sales

Operating expenses were $421.7 million (27.6% of sales) compared to $426.7 million (27.5% of sales)

Ending inventory increased 6%

First Quarter Results

Dillard's reported net income for the 13 weeks ended May 3, 2025 of $163.8 million, or $10.39 per share, compared to $180.0 million, or $11.09 per share, for the 13 weeks ended May 4, 2024.

Sales - First Quarter

Net sales for the 13 weeks ended May 3, 2025 and May 4, 2024 were $1.529 billion and $1.549 billion, respectively. Net sales includes the operations of the Company's construction business, CDI Contractors, LLC ('CDI').

Total retail sales (which excludes CDI) for the 13 weeks ended May 3, 2025 and May 4, 2024 were $1.468 billion and $1.493 billion, respectively. Total retail sales decreased 2% for the 13-week period ended May 3, 2025 compared to the 13-week period ended May 4, 2024. Sales in comparable stores for the same period decreased 1%. Stronger performing categories were juniors' and children's apparel and men's clothing and accessories. Weaker performing categories were home and furniture, shoes and ladies' apparel.

Gross Margin - First Quarter

Consolidated gross margin for the 13 weeks ended May 3, 2025 was 43.9% of sales compared to 44.6% of sales for the 13 weeks ended May 4, 2024.

Retail gross margin for the 13 weeks ended May 3, 2025 was 45.5% of sales compared to 46.2% of sales for the 13 weeks ended May 4, 2024. Compared to the prior year first quarter, retail gross margin decreased moderately in ladies' apparel and was flat in ladies' accessories and lingerie. All other merchandise categories decreased slightly.

Inventory increased 6% at May 3, 2025 compared to May 4, 2024.

Selling, General & Administrative Expenses - First Quarter

Consolidated selling, general and administrative expenses ('operating expenses') for the 13 weeks ended May 3, 2025 were $421.7 million (27.6% of sales) and $426.7 million (27.5% of sales) for the 13 weeks ended May 4, 2024. The decrease of $5.0 million was primarily due to decreased payroll and payroll related expenses.

Share Repurchase

During the 13 weeks ended May 3, 2025, the Company purchased $98.0 million (approximately 276,000 shares) of Class A Common Stock at an average price of $355.65 per share. As of May 3, 2025, authorization of $175.0 million remained under the May 2023 program.

Total shares outstanding (Class A and Class B Common Stock) at May 3, 2025 and May 4, 2024 were 15.6 million and 16.2 million, respectively.

Other Information

The Company operates 272 Dillard's stores, including 28 clearance centers, spanning 30 states (totaling 46.3 million square feet) and an Internet store at dillards.com.

See full release at: https://investor.dillards.com/news-releases/news-release-details/dillards-inc-reports-first-quarter-results-5