Dillard’s reported a slight decline in sales for the first quarter, attributing it to a “challenging” retail environment. Same-store sales, a key metric in retail, also fell by 2%.
Despite the sales dip, there were some bright spots. The home and furniture department performed moderately well, while the cosmetics department emerged as the strongest performer. Gross margin, a measure of profitability, also improved slightly for most departments.
The company emphasised its focus on profitable sales and inventory control, resulting in a higher gross margin and a 2% decrease in inventory. Dillard’s also achieved a milestone with cash and short-term investments exceeding $1 billion for the first time.
Overall company revenue, including its construction business, decreased by 2%. However, net income came in higher than expected, despite falling 11% compared to the previous year.
Dillard’s continued its expansion by opening its first store in South Dakota. However, it also announced the closure of a clearance centre in Ohio. The company ended the quarter with 274 stores, including 29 clearance centres.
