Core Viewpoint - Dillard's, Inc. reported a relatively good first quarter despite economic uncertainty, maintaining expense control and a healthy gross margin while executing a significant stock repurchase program [1]. Financial Performance - Net income for the first quarter ended May 3, 2025, was $163.8 million, or $10.39 per share, down from $180.0 million, or $11.09 per share, in the same period last year [2]. - Net sales for the first quarter were $1.529 billion, a decrease from $1.549 billion in the prior year [3]. - Total retail sales, excluding the construction business, decreased by 2% to $1.468 billion compared to $1.493 billion in the previous year, with comparable store sales down by 1% [4]. Gross Margin - Consolidated gross margin for the first quarter was 43.9% of sales, down from 44.6% in the prior year [5]. - Retail gross margin was 45.5% of sales, compared to 46.2% in the same period last year, with declines noted in ladies' apparel and slight decreases in other categories [5]. Inventory and Expenses - Inventory increased by 6% as of May 3, 2025, compared to the previous year [6]. - Selling, general, and administrative expenses were $421.7 million, or 27.6% of sales, slightly down from $426.7 million, or 27.5% of sales, in the prior year, primarily due to reduced payroll expenses [7]. Share Repurchase - The company repurchased $98 million worth of Class A Common Stock, approximately 276,000 shares, at an average price of $355.65 per share, with $175 million remaining under the current repurchase program [10]. Store Operations - Dillard's operates 272 stores across 30 states, including 28 clearance centers, totaling 46.3 million square feet of retail space [11].

Core Insights - Dillard's, Inc. will announce its financial results for the 13 weeks ended May 3, 2025, on May 15, 2025, before the opening of the New York Stock Exchange [1] Company Information - The announcement will provide insights into the company's performance during the specified period, which is crucial for investors and analysts [1] - Julie J. Guymon is the Director of Investor Relations, and she can be contacted for further information regarding the upcoming results [1]

Core Viewpoint - Dillard's, Inc. is anticipated to report year-over-year declines in both revenue and earnings for the first quarter of fiscal 2025, with revenues expected at $1.54 billion, reflecting a 0.6% decrease, and earnings estimated at $9.10 per share, indicating a 17.9% decline from the previous year [1]. Financial Performance - The Zacks Consensus Estimate for Dillard's first-quarter revenues is $1.54 billion, down 0.6% from the prior year [1]. - The consensus estimate for earnings per share is $9.10, which represents a 17.9% decrease compared to the same quarter last year [1]. - In the last reported quarter, Dillard's achieved an earnings surprise of 39.5%, with an average earnings beat of 14.1% over the trailing four quarters [2]. Earnings Prediction - The current Earnings ESP for Dillard's is 0.00%, and it holds a Zacks Rank of 3 (Hold), indicating that the model does not predict an earnings beat this time [3][2]. Market Trends - Dillard's has been affected by a challenging retail environment, leading to cautious consumer buying behavior, which has negatively impacted sales and comparable-store sales [4]. - A predicted decline of 1.1% in comparable-store sales is expected due to the tough retail conditions, with overall retail sales anticipated to drop by 1.3% year-over-year [5]. - SG&A expenses are projected to increase by 2% for the first quarter, with the SG&A expense rate expected to rise by 90 basis points to 28% [6]. Operational Insights - Despite the challenges, Dillard's has improved its inventory management and has seen strong consumer demand, which has helped strengthen its competitive position [7]. - The company is focusing on growth opportunities in both brick-and-mortar and e-commerce, enhancing brand relationships, remodeling stores, and optimizing its activewear segment [8]. - Initiatives to improve brand relations and focus on trending categories are expected to have contributed positively to sales in the first quarter [9]. E-commerce and Store Performance - Dillard's e-commerce business has benefited from better merchandise assortments and effective inventory management, contributing to overall performance [10]. - The company is concentrating on increasing productivity at existing stores and enhancing its omnichannel platform, which is expected to drive fiscal first-quarter performance [10]. Valuation and Stock Performance - Dillard's is trading at a premium compared to industry and historical benchmarks, with a forward 12-month price-to-sales ratio of 0.87X, higher than the industry average of 0.28X [11]. - Year-to-date, Dillard's shares have decreased by 16.6%, while the industry has seen a decline of 26.9% [12].

Core Insights - Dillard's, Inc. has launched a limited-edition capsule collection named Shea Leigh Mills for Gianni Bini, designed by Nashville-based style tastemaker Shea Leigh Mills, available online and in stores nationwide [1][3] - The collection includes coordinating apparel, footwear, swimwear, handbags, and accessories, reflecting Shea's personal inspirations and positive outlook on life [3][4] Company Overview - Dillard's is introducing the Shea Leigh Mills for Gianni Bini collection, which captures the designer's personality and style, aiming to resonate with Gianni Bini's customer base [4] - Gianni Bini, launched in 2001, is Dillard's largest ladies' contemporary brand, focusing on high-quality, trendy styles that cater to contemporary women's needs [6]

Company Overview - Dillard's operates 272 stores, including 28 clearance centers, and an e-commerce site, dillards.com, as of February 1, 2025[11]. - As of December 23, 2024, Dillard's employed approximately 28,800 associates, with 20,100 being full-time[26]. - As of February 1, 2025, the company operates 272 retail stores across 30 states, totaling approximately 46.3 million square feet, with 43.3 million square feet owned[106]. - The company operates several distribution centers, with a total owned square footage of 3,894,000, including a 700,000 square feet facility in Ft. Worth, Texas[109]. - The company operates a general contracting construction company, CDI, which is a separate reportable segment from its retail operations[128]. Financial Performance - Net income for fiscal 2024 was $593.5 million, a decrease from $738.8 million in fiscal 2023, resulting in earnings per share of $36.82 compared to $44.73[135]. - The company's net sales for fiscal 2024 were $6,482.6 million, a decrease of 4% compared to $6,752.1 million in fiscal 2023[179]. - Consolidated gross margin for fiscal 2024 was 39.5% of sales, down from 40.3% in fiscal 2023, with retail gross margin at 41.0% compared to 41.8%[133]. - Selling, general and administrative expenses increased to $1,731.2 million (26.7% of sales) in fiscal 2024 from $1,717.4 million (25.4% of sales) in fiscal 2023[134]. - Cash flow from operations was $714.1 million in fiscal 2024, down from $883.6 million in fiscal 2023[137]. - The company returned $534.8 million to shareholders through dividends and share repurchases during fiscal 2024[137]. - The estimated effective income tax rate for fiscal 2024 was 18.7%, down from 19.4% in fiscal 2023[199]. Sales and Market Trends - In Fiscal 2024, the retail operations segment accounted for 96% of net sales, with cosmetics at 16%, ladies' apparel at 20%, and men's apparel at 19%[12]. - Comparable store sales declined by 3% for the 52-week period ended February 1, 2025, while total retail sales decreased by 2% to $6.219 billion[132]. - The retail operations segment experienced a decrease in sales of $261.1 million, with comparable store sales down 3% for the 52-week period ended February 1, 2025[182]. - Exclusive brand merchandise sales penetration was 22.7% of total net sales in fiscal 2024, down from 23.5% in fiscal 2023[185]. - Retail sales per square foot decreased to $137 in fiscal 2024 from $143 in fiscal 2023[139]. - The company faced challenges from inflation and economic uncertainties, impacting pricing and customer purchasing behavior[147]. Competition and Market Risks - Dillard's faces intense competition from various retailers, including online and off-price competitors, which may impact revenues and market share[37]. - Changes in economic conditions affecting consumer confidence and spending could adversely affect the company's sales and results of operations[51]. - The company is exposed to risks associated with sourcing merchandise from foreign countries, including tariffs and trade restrictions, which could increase costs and affect profitability[63]. - Compliance with the Uyghur Forced Labor Prevention Act could lead to increased costs of goods and adversely affect profitability[66]. - Disruptions in the global supply chain could result in lost sales and increased costs, negatively impacting profits[67]. - The company's profitability may be adversely impacted by unexpected weather conditions affecting inventory compatibility with consumer needs[48]. Credit and Financial Agreements - The company has transitioned its private label credit card program from Wells Fargo to Citibank, with the new program launching on August 19, 2024[19]. - The Company entered into a 10-year agreement with Citibank to provide a new credit card program, replacing the previous Wells Fargo Alliance[70]. - Initial income from the Citibank Alliance is expected to be less than historical earnings from the Wells Fargo Alliance, with future cash flows difficult to predict[73]. - The income and cash flow from the Citibank Alliance will depend on factors such as sales levels, payment rates, and credit losses, similar to the previous alliance[75]. - Regulatory changes, such as limits on late fees, could materially affect income and cash flows from the private label credit card program[74]. - Income from the Citibank Alliance was $54.1 million in fiscal 2024, down from $67.2 million in fiscal 2023[210]. Cybersecurity and Compliance - The Company has developed a comprehensive information security program to manage cybersecurity risks, including annual risk assessments[94]. - Third-party security firms are engaged to monitor cybersecurity threats and ensure compliance with security standards[95]. - The Company utilizes multiple training methodologies to enhance associate awareness of cybersecurity risks and practices[97]. - The company faced numerous cybersecurity threats, which could potentially expose it to loss or misuse of confidential information[105]. - The company’s retail operations are impacted by a risk-based approach to cybersecurity, which may not fully eliminate risks[105]. - The Company faces risks related to customer payment methods, including potential fraud and compliance with various regulations[76]. Employee and Operational Insights - The company emphasizes talent development, with approximately 75% of salaried managers promoted from hourly store positions[30]. - Employee wage increases and healthcare costs could significantly impact the Company's financial results and cash flows[92]. - Payroll and payroll-related expenses rose by 1.2% to $1,231.4 million in fiscal 2024 compared to $1,217.3 million in fiscal 2023[192]. - Insurance accruals were recorded at $40.1 million as of February 1, 2025, with a 10% change in self-insurance reserve potentially affecting net income by approximately $3 million[171]. - The company's pension liability was reported at $298.9 million as of February 1, 2025, with expected pension expense of approximately $25.9 million for fiscal 2025[178]. Construction Segment Performance - The construction segment contributed 4% to total net sales in Fiscal 2024, up from 2% in Fiscal 2022[12]. - The construction segment's net sales decreased by $8.4 million or 3% during fiscal 2024 due to reduced construction activity[184]. - Remaining performance obligations related to executed construction contracts totaled $202.8 million, increasing approximately 24% from the previous year[184].

Core Viewpoint - Dillard's shares have declined approximately 16.1% since the last earnings report, underperforming the S&P 500, raising questions about the potential for continued negative trends or a possible breakout before the next earnings release [1]. Group 1: Earnings and Estimates - Fresh estimates for Dillard's have trended downward over the past month, with the consensus estimate shifting down by 6.86% [2]. - The most recent earnings report is crucial for understanding the important drivers affecting the company's performance [1]. Group 2: VGM Scores - Dillard's currently holds a Growth Score of B and a Momentum Score of A, indicating strong performance in these areas [3]. - The stock has also received a grade of B on the value side, placing it in the second quintile for this investment strategy, leading to an aggregate VGM Score of A [3]. Group 3: Outlook - The overall trend of estimates for Dillard's has been downward, suggesting a negative outlook for the stock [4]. - Dillard's has a Zacks Rank of 4 (Sell), indicating expectations of below-average returns in the coming months [4].

Group 1 - Dillard's, Inc. has amended and extended its $800 million senior secured revolving credit facility, with a new maturity date set for March 12, 2030 [1] - A $200 million expansion option remains available under the credit facility [1] - The credit facility is intended for general corporate purposes, including working capital financing, capital expenditures, and share repurchases, subject to certain restrictions [2] Group 2 - The amended credit agreement does not impose financial covenant requirements as long as availability exceeds $80 million and no specified event of default has occurred [2] - The credit facility was arranged by JPMorgan Chase Bank, N.A. [3]

Group 1 - Dillard's, Inc. has amended and extended its $800 million senior secured revolving credit facility, with a new maturity date set for March 12, 2030 [1] - A $200 million expansion option remains available under the credit facility [1] - The credit facility is intended for general corporate purposes, including working capital financing, capital expenditures, and share repurchases, subject to certain restrictions [2] Group 2 - The amended credit agreement does not impose financial covenant requirements as long as availability exceeds $80 million and no specified event of default has occurred [2] - The credit facility was arranged by JPMorgan Chase Bank, N.A. [3]

Core Points - Dillard's, Inc. announced a cash dividend of $0.25 per share on its Class A and Class B Common Stock [1] - The dividend is scheduled to be payable on May 5, 2025, to shareholders of record as of March 31, 2025 [1]

Core Points - Dillard's, Inc. announced a cash dividend of $0.25 per share on its Class A and Class B Common Stock [1] - The dividend is scheduled to be payable on May 5, 2025, to shareholders of record as of March 31, 2025 [1]