US retailer Dillard's registers net income of $180 mn in Q1

Net sales for the 13 weeks ended May 4, 2024 and April 29, 2023 were $1.549 billion and $1.584 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 4, 2024 and April 29, 2023 were $1.493 billion and $1.515 billion, respectively. Total retail sales decreased 1 per cent for the 13-week period ended May 4, 2024 compared to the 13-week period ended April 29, 2023. Sales in comparable stores for that same period decreased 2 per cent. The company noted a continued challenging sales environment during the first quarter. Cosmetics was the strongest performing merchandise category, and men’s apparel and accessories was the weakest performing category, the company said in a press release.

The company’s consolidated gross margin for the 13 weeks ended May 4, 2024 was 44.6 per cent of sales compared to 43.7 per cent of sales for the 13 weeks ended April 29, 2023. Retail gross margin (which excludes CDI) for the 13 weeks ended May 4, 2024 was 46.2 per cent of sales compared to 45.6 per cent of sales for the 13 weeks ended April 29, 2023. Gross margin increased moderately in home and furniture and ladies’ accessories and lingerie and increased slightly in men’s apparel and accessories, ladies’ apparel, and juniors’ and children’s apparel. Gross margin was essentially flat in shoes and cosmetics. Inventory decreased 2 per cent at May 4, 2024 compared to April 29, 2023.

Consolidated selling, general and administrative expenses (operating expenses) for the 13 weeks ended May 4, 2024 were $426.7 million (27.5 per cent of sales) compared to $406.4 million (25.7 per cent of sales) for the 13 weeks ended April 29, 2023. The increase in operating expenses is primarily due to increased payroll expenses.

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

Fibre2Fashion News Desk (RR)