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From Home Furnishing Business

Dillard's Inc. Operating Results Includes Strong Furniture Sales

August 14, 2023  by HFBusiness Staff in Business Strategy, Industry   

Dillard’s Chief Executive Officer William T. Dillard, II stated, “The cautious consumer we noted in the first quarter continued in the first few weeks of the second, leading to a sales decline of 3%."

"We exited the quarter with inventory flat year over year while maintaining a strong retail gross margin of 40.4%. We repurchased $103 million of stock and ended the quarter with $924 million in cash and short-term investments.”

Highlights of the Second Quarter (compared to the prior year second quarter):

~ Total retail sales decreased 3%
~ Comparable store sales decreased 3%
~ Net income of $131.5 million compared to $163.4 million
~ Earnings per share of $7.98 compared to $9.30
~ Retail gross margin of 40.4% of sales compared to 41.5% of sales
~ Operating expenses were $412.6 million (26.3% of sales) compared to $401.3 million (25.3% of sales)
~ Share repurchase of $103.4 million (approximately 358,000 shares)
~ Ending inventory unchanged (as a percentage) year over year

Second Quarter Results

Dillard’s reported net income for the 13 weeks ended July 29, 2023 of $131.5 million, or $7.98 per share compared to $163.4 million, or $9.30 per share, for the prior year second quarter.

Sales – Second Quarter

Net sales for the 13 weeks ended July 29, 2023 and July 30, 2022 were $1.567 billion and $1.589 billion, respectively. Net sales include the operations of the Company’s construction business, CDI Contractors, LLC (“CDI”).

Total retail sales (which excludes CDI) for the 13 weeks ended July 29, 2023, and July 30, 2022, were $1.499 billion and $1.553 billion, respectively. Total retail sales decreased 3% for the 13-week period ended July 29, 2023, compared to the prior year second quarter.

Sales in comparable stores decreased 3%. The Company noted continuing consumer caution, particularly in the first few weeks of the second quarter. Cosmetics was the strongest performing category followed by home and furniture. Ladies’ accessories and lingerie, ladies’ apparel and shoes were the weakest categories.