Dillard’s, Inc. reported net sales of $1.490 billion for the 13-week second quarter ended August 3, compared to $1.567 billion for the year-ago comparable quarter ended July 29, 2023.

Total retail sales for the 2024 Q2 period decreased 5 percent to $1.426 billion, compared to $1.499 billion in the prior-year Q2 period. Sales in comparable stores for that same period also decreased 5 percent. Cosmetics was the retailer’s strongest-performing category in the quarter, with the weakest performance noted in men’s apparel, accessories and shoes.

Consolidated gross margin was 37.6 percent of sales in Q2, compared to 38.8 percent in the year-ago Q2 period.

Retail gross margin for the second quarter was 39.1 percent of sales, compared to 40.4 percent for the 2023 Q2 period. The retail gross margin performance was flat compared to the prior year in the second quarter in men’s apparel and accessories, and it decreased slightly in cosmetics, juniors and kid’s apparel. The company noted moderate gross margin decreases in shoes, ladies’ apparel, accessories and lingerie, home and furniture.

Consolidated operating expenses for the second quarter were $433.6 million, or 29.1 percent of sales, compared to $412.6 million, or 26.3 percent of sales, for the prior-year second quarter. The increase in operating expenses was primarily due to increased payroll expenses. Dillard’s reported that it is working to align expenses to sales performance.

Net income for the 13-week second quarter ended August 3 amounted to $74.5 million, or $4.59 per share, compared to $131.5 million, or $7.98 per share, for the 13-week period ended July 29, 2023.

First Half (26 Weeks) Summary

  • Total retail sales decreased 3 percent to $2.919 billion.
  • Comparable store sales decreased 3 percent.
  • Net income of $254.5 million compared to $333.0 million.
  • Earnings per share of $15.68 compared to $19.89 in H1 2023.
  • Retail gross margin of 42.7 percent of sales compared to 43.0 percent of sales in H1 2023.
  • Operating expenses were $860.3 million, or 28.3 percent of sales, in H1 compared to $818.9 million, or 26.0 percent of sales in H1 last year.

Balance Sheet Summary

  • Merchandise inventories were $946.7 million at quarter-end, essentially flat to inventories of $774.3 million at July 29, 2023.
  • Cash and Cash Equivalents were $1.191 billion at quarter-end, essentially flat to inventories of $1.192 billion at July 29, 2023.

Dillard’s operates 273 stores, including 28 clearance centers, in 30 states (totaling 46.5 million square feet) and an Internet store at dillards.com. The company reported closing its 120,000-square-foot Eastwood Mall Clearance Center in Niles, OH, in June 2024.

Image courtesy Dillard’s