Dillard’s is the latest retailer to be impacted by the lackluster consumer climate.
On Thursday, the Little Rock, Ark.-based department store reported declines in net income, total sales and comparable-store sales.
In the third quarter ended Nov. 2, Dillard’s reported net income of $124.6 million, or $7.73 a share, down from $155.3 million, or $9.49 a share in the 13 weeks ended Oct. 28, 2023. Included in the 2023 results was a pretax gain of $4 million primarily related to the sale of a store property.
Total retail sales for the third quarter were down 4 percent to $1.36 billion, down from $1.41 billion in the prior year. Comparable-store sales fell 4 percent.
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The company said that in the third quarter, cosmetics was the strongest-performing merchandise category while juniors’, children’s and men’s apparel and accessories were weak.
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In the company’s only comment on its performance in the period, William T. Dillard 2nd said the company is focusing on its gross margins increases rather than the dip in sales. “While retail sales declined 4 percent, we focused on gross margin, reporting a respectable 44.5 percent of sales, while working on expense control. We reported cash and short-term investments of over $1.1 billion after repurchasing $107 million in stock. We are looking forward to welcoming our customers and serving them this holiday season.”
Gross margin for the third quarter was 44.5 percent of sales compared to 45.3 percent for the prior year with women’s accessories and lingerie increasing slightly. Men’s apparel and accessories and cosmetics were flat, the company said. Gross margin decreased slightly in footwear, juniors’ and children’s, and fell moderately in home, furniture and women’s apparel.
For the nine months, net income fell to $379.1 million, or $23.42 per share, compared to $488.3 million, or $29.38 a share, in the prior-year period. Included in the net income figure for 2023 was a pretax gain of $6 million primarily related to the sale of two store properties.
Total retail sales for the nine months fell 3 percent to $4.45 billion from $4.63 billion in the prior year. Comparable-store sales decreased 4 percent.
Also on Thursday, Dillard’s said it has exclusively launched the Lilly Sisto for Gianni Bini line of contemporary women’s apparel, footwear, handbags and accessories. The limited-edition capsule from New York-based influencer Sisto will be available for a limited time in Dillard’s stores and online. Gianni Bini is one of Dillard’s private brands.
“Since I was a little girl, I’ve dreamed of designing my own fashion line, and I was honored when Dillard’s approached me to bring this dream to life,” Sisto said. “Over the past year, we’ve worked together to create my dream capsule wardrobe for the fall/winter season. My collection features timeless wardrobe staples infused with my signature tomboy-chic style. It’s inspired by my favorite vintage pieces, travels, and the treasures I’ve collected over the years — a homage to my upbringing between New Jersey, Palm Beach, Dallas, and my home, New York City.”
Alexandra Dillard Lucie, vice president of merchandising for the retailer, added: “Lilly has a signature style that we knew our Gianni Bini customer would absolutely love. Each piece in her collaboration has wonderful, surprising elements that make it uniquely her own — a collection for Gianni Bini that only Lilly could inspire.”
Dillard’s operates 273 stores, including 28 clearance centers, in 30 states.