Dillard's, Inc. Reports Third Quarter and Year-to-Date Results

Core Insights - Dillard's reported a decline in retail sales and net income for the third quarter, with total retail sales decreasing by 4% compared to the previous year [1][4][9] - The company maintained a strong gross margin of 44.5% despite the sales decline, focusing on expense control and cash management [1][6][8] - Dillard's has significant cash reserves, reporting over $1.1 billion in cash and short-term investments after a stock repurchase program [1][13] Sales Performance - Total net sales for the third quarter were $1.427 billion, down from $1.476 billion in the same period last year [3][10] - Comparable store sales also decreased by 4%, with the strongest performance in cosmetics and the weakest in juniors' and children's apparel [4][6] Financial Results - Net income for the third quarter was $124.6 million, a decrease from $155.3 million in the prior year, resulting in earnings per share of $7.73 compared to $9.49 [2][9] - For the 39 weeks ended November 2, 2024, net income was $379.1 million, down from $488.3 million, with earnings per share of $23.42 compared to $29.38 [9][10] Gross Margin Analysis - Retail gross margin for the third quarter was 44.5%, slightly down from 45.3% in the previous year, with variations across merchandise categories [6][11] - Consolidated gross margin for the 39 weeks was 41.6%, compared to 42.0% in the prior year [11] Operating Expenses - Operating expenses for the third quarter were $418.9 million, slightly lower than $421.8 million in the previous year, representing 29.4% of sales [8][12] - For the 39 weeks, operating expenses increased to $1,279.2 million, or 28.6% of sales, compared to 26.8% in the prior year [12] Inventory Management - Ending inventory increased by 3% compared to the previous year, with the company noting a shorter selling period between Thanksgiving and Christmas [7][10] Share Repurchase Activity - During the third quarter, Dillard's repurchased $107 million worth of stock, reducing total shares outstanding to 15.9 million [1][13]