Dillard's Q1 Earnings Beat Estimates, Comparable Store Sales Dip 1%

Core Insights - Dillard's Inc. reported mixed results for the first quarter of fiscal 2025, with earnings per share exceeding estimates while net sales fell short of expectations [1][2] Financial Performance - Earnings per share (EPS) reached $10.39, surpassing the Zacks Consensus Estimate of $9.10, but declined 6.3% from $11.09 in the same quarter last year [2] - Net sales amounted to $1.529 billion, a decrease of 1.4% year over year, and below the consensus estimate of $1.540 billion [2] - Total retail sales, excluding CDI Contractors, decreased by 1.7% year over year to $1.468 billion, with comparable store sales (comps) dropping 1% [4] Margin Analysis - The consolidated gross margin contracted by 70 basis points to 43.9%, with retail gross margin at 45.5%, also reflecting a year-over-year decrease of 70 basis points [5] - Selling, general and administrative (SG&A) expenses as a percentage of sales were 27.6%, up 10 basis points from the prior year, while dollar terms saw a 1.2% decline to $421.7 million [6] Cash Flow and Share Repurchase - Dillard's ended the quarter with cash and cash equivalents of $900.5 million and long-term debt of $321.6 million, reporting $232.6 million in net cash from operating activities [8] - The company repurchased 276,000 shares for $98 million, with an average price of $355.65 per share, and has $175 million remaining under its share repurchase authorization [9] Future Outlook - For fiscal 2025, Dillard's expects depreciation and amortization expenses of $180 million and projects interest and debt income of $8 million [12]