US' Dillard's net sales drop 3.3% in Q3 2024, store sales by 4%

The net income of the company was $124.6 million in Q3 2024 compared to $155.3 million in the same quarter a year prior. Earnings per share (EPS) were $7.73 compared to $9.49 in Q3 2024. Total retail sales (which excludes company’s construction business, CDI Contractors, LLC) were $1.356 billion in comparison to $1.409 billion a year prior. Total retail sales decreased by 4 per cent year-over-year (YoY). Sales in comparable stores for that same period decreased 4 per cent YoY. Cosmetics was the strongest performing merchandise category, with the weakest performances noted in juniors’ and children’s apparel and men’s apparel and accessories, Dillard’s said in a press release.

The consolidated gross margin of the company for Q3 2024 was 42.6 per cent of sales compared to 43.5 per cent of sales for the same period last year. The retail gross margin was 44.5 per cent of sales compared to 45.3 per cent of sales in the same quarter last year.

Compared to the prior year’s third quarter, retail gross margin increased slightly in ladies’ accessories and lingerie and was flat in men’s apparel and accessories and cosmetics. Gross margin decreased slightly in shoes and juniors’ and children’s apparel and decreased moderately in home and furniture and ladies’ apparel.

The inventory increased 3 per cent YoY and the company noted a shorter selling period between Thanksgiving and Christmas this year.

Consolidated selling, general and administrative expenses (operating expenses) for the 13 weeks in 2024 decreased $2.9 million to $418.9 million (29.4 per cent of sales) compared to $421.8 million (28.6 per cent of sales) for the 13 weeks in 2023.

“While retail sales declined 4 per cent, we focused on gross margin, reporting a respectable 44.5 per cent of sales, while working on expense control. We reported cash and short-term investments of over $1.1 billion after repurchasing $107 million in stock. We are looking forward to welcoming our customers and serving them this holiday season,” said chief executive officer (CEO) William T Dillard of Dillard Inc.

39 weeks or nine months (9M) financials

The total retail sales of the company decreased 3 per cent year-over-year (YoY), and comparable store sales dropped 4 per cent YoY in the 9M period. Meanwhile, net sales were $4.466 billion in comparison to $4.628 billion a year prior, while retail sales for the same period were $4.275 billion in comparison to $4.423 billion in 2023. Sales in comparable stores for that same period decreased 4 per cent.

The net income of the company was $379.1 million compared to $488.3 million in the prior year, earnings per share (EPS) were $23.42 compared to $29.38 last year. The retail gross margin was 43.3 per cent of sales compared to 43.7 per cent of sales in the prior year. The operating expenses were $1,279.2 million (28.6 per cent of sales) compared to $1,240.7 million (26.8 per cent of sales) last year.

Consolidated gross margin for the 9M period was 41.6 per cent of sales compared to 42.0 per cent in the prior year. Retail gross margin (which excludes CDI) was 43.3 per cent of sales compared to 43.7 per cent of sales for the 39 weeks ended October 28, 2023.

The operating expenses for the 39 weeks period were $1,279.2 million (28.6 per cent of sales) compared to $1,240.7 million (26.8 per cent of sales) the same period last year. The increase in operating expenses is primarily due to increased payroll and payroll-related expenses.

Fibre2Fashion News Desk (SG)