Dillard’s, Inc. Reports First Quarter Results
- Strong cash position with $1.2 billion in cash and short-term investments
- Continued share repurchase program with $98 million in buybacks
- Healthy retail gross margin of 45.5%
- Reduced operating expenses by $5 million through payroll optimization
- Net income declined to $163.8 million from $180.0 million YoY
- Total retail sales decreased 2% with comparable store sales down 1%
- Retail gross margin contracted from 46.2% to 45.5%
- Inventory increased 6% YoY
Insights
Dillard's Q1 shows resilience with $163.8M profit despite 2% sales decline, maintaining strong 45.5% margins and $1.2B cash position.
Dillard's delivered a solid, if somewhat softer, first quarter with
The
Management's disciplined approach is evident in the
Performance varied significantly across merchandise categories. Juniors' and children's apparel along with men's clothing and accessories showed strength, while home and furniture, shoes, and ladies' apparel underperformed. The moderate decline in ladies' apparel margins alongside slight decreases in other categories points to some promotional activity, but nothing alarming.
CEO William Dillard's characterization of results as "relatively good" given economic uncertainty accurately frames the quarter - not exceptional but resilient in a challenging environment. With its substantial cash reserves and controlled expenses, Dillard's remains well-positioned to weather continued retail headwinds while maintaining shareholder returns.
LITTLE ROCK, Ark., May 15, 2025 (GLOBE NEWSWIRE) -- Dillard’s, Inc. (NYSE: DDS) (the “Company” or “Dillard’s”) announced operating results for the 13 weeks ended May 3, 2025. This release contains certain forward-looking statements. Please refer to the Company’s cautionary statements included below under “Forward-Looking Information.”
Dillard’s Chief Executive Officer William T. Dillard, II stated, “We turned in a relatively good first quarter in light of the prevailing economic uncertainty. We kept expenses under control and reported a healthy gross margin. After repurchasing
Highlights of the First Quarter (compared to the prior year first quarter):
- Total retail sales decreased
2% - Comparable store sales decreased
1% - Net income of
$163.8 million compared to$180.0 million - Earnings per share of
$10.39 compared to$11.09 - Retail gross margin of
45.5% of sales compared to46.2% of sales - Operating expenses were
$421.7 million (27.6% of sales) compared to$426.7 million (27.5% of sales) - Ending inventory increased
6%
First Quarter Results
Dillard’s reported net income for the 13 weeks ended May 3, 2025 of
Sales – First Quarter
Net sales for the 13 weeks ended May 3, 2025 and May 4, 2024 were
Total retail sales (which excludes CDI) for the 13 weeks ended May 3, 2025 and May 4, 2024 were
Gross Margin – First Quarter
Consolidated gross margin for the 13 weeks ended May 3, 2025 was
Retail gross margin for the 13 weeks ended May 3, 2025 was
Inventory increased
Selling, General & Administrative Expenses – First Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 3, 2025 were
Share Repurchase
During the 13 weeks ended May 3, 2025, the Company purchased
Total shares outstanding (Class A and Class B Common Stock) at May 3, 2025 and May 4, 2024 were 15.6 million and 16.2 million, respectively.
Other Information
The Company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states (totaling 46.3 million square feet) and an Internet store at dillards.com.
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In Millions, Except Per Share Data) | |||||||||||||||
| 13 Weeks Ended | 13 Weeks Ended | ||||||||||||||
| May 3, 2025 | May 4, 2024 | ||||||||||||||
| % of | % of | ||||||||||||||
| Net | Net | ||||||||||||||
| Amount | Sales | Amount | Sales | ||||||||||||
| Net sales | $ | 1,528.9 | 100.0 | % | $ | 1,549.1 | 100.0 | % | |||||||
| Service charges and other income | 18.1 | 1.2 | 23.7 | 1.5 | |||||||||||
| 1,547.0 | 101.2 | 1,572.8 | 101.5 | ||||||||||||
| Cost of sales | 857.7 | 56.1 | 857.8 | 55.4 | |||||||||||
| Selling, general and administrative expenses | 421.7 | 27.6 | 426.7 | 27.5 | |||||||||||
| Depreciation and amortization | 44.5 | 2.9 | 46.1 | 3.0 | |||||||||||
| Rentals | 4.6 | 0.3 | 5.0 | 0.3 | |||||||||||
| Interest and debt (income) expense, net | (0.8 | ) | (0.1 | ) | (3.5 | ) | (0.2 | ) | |||||||
| Other expense | 5.7 | 0.4 | 6.2 | 0.4 | |||||||||||
| Gain on disposal of assets | 0.1 | 0.0 | 0.3 | 0.0 | |||||||||||
| Income before income taxes | 213.7 | 14.0 | 234.8 | 15.2 | |||||||||||
| Income taxes | 49.9 | 54.8 | |||||||||||||
| Net income | $ | 163.8 | 10.7 | % | $ | 180.0 | 11.6 | % | |||||||
| Basic and diluted earnings per share | $ | 10.39 | $ | 11.09 | |||||||||||
| Basic and diluted weighted average shares outstanding | 15.8 | 16.2 | |||||||||||||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) | ||||||
| May 3, | May 4, | |||||
| 2025 | 2024 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 900.5 | $ | 817.8 | ||
| Accounts receivable | 56.9 | 49.3 | ||||
| Short-term investments | 258.5 | 347.2 | ||||
| Merchandise inventories | 1,469.3 | 1,387.7 | ||||
| Other current assets | 82.9 | 106.2 | ||||
| Total current assets | 2,768.1 | 2,708.2 | ||||
| Property and equipment, net | 976.0 | 1,063.0 | ||||
| Operating lease assets | 32.5 | 41.9 | ||||
| Deferred income taxes | 71.3 | 64.0 | ||||
| Other assets | 59.1 | 60.1 | ||||
| Total assets | $ | 3,907.0 | $ | 3,937.2 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable and accrued expenses | $ | 1,056.7 | $ | 1,031.3 | ||
| Current portion of operating lease liabilities | 10.8 | 11.6 | ||||
| Federal and state income taxes | 79.3 | 87.4 | ||||
| Total current liabilities | 1,146.8 | 1,130.3 | ||||
| Long-term debt | 321.6 | 321.5 | ||||
| Operating lease liabilities | 21.5 | 30.3 | ||||
| Other liabilities | 359.2 | 380.1 | ||||
| Subordinated debentures | 200.0 | 200.0 | ||||
| Stockholders’ equity | 1,857.9 | 1,875.0 | ||||
| Total liabilities and stockholders’ equity | $ | 3,907.0 | $ | 3,937.2 | ||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) | ||||||||
| 13 Weeks Ended | 13 Weeks Ended | |||||||
| May 3, | May 4, | |||||||
| 2025 | 2024 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 163.8 | $ | 180.0 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and other deferred costs | 44.9 | 46.5 | ||||||
| Gain on disposal of assets | (0.1 | ) | (0.3 | ) | ||||
| Accrued interest on short-term investments | (3.2 | ) | (3.2 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) decrease in accounts receivable | (1.2 | ) | 11.3 | |||||
| Increase in merchandise inventories | (297.3 | ) | (293.7 | ) | ||||
| Decrease (increase) in other current assets | 10.6 | (9.8 | ) | |||||
| Decrease (increase) in other assets | 1.1 | (0.2 | ) | |||||
| Increase in trade accounts payable and accrued expenses and other liabilities | 263.6 | 259.5 | ||||||
| Increase in income taxes | 50.4 | 54.3 | ||||||
| Net cash provided by operating activities | 232.6 | 244.4 | ||||||
| Investing activities: | ||||||||
| Purchase of property and equipment and capitalized software | (16.8 | ) | (35.2 | ) | ||||
| Proceeds from disposal of assets | 0.2 | 0.3 | ||||||
| Proceeds from insurance | 1.5 | — | ||||||
| Purchase of short-term investments | (212.4 | ) | (245.9 | ) | ||||
| Proceeds from maturities of short-term investments | 282.8 | 50.0 | ||||||
| Net cash provided by (used in) investing activities | 55.3 | (230.8 | ) | |||||
| Financing activities: | ||||||||
| Cash dividends paid | (4.0 | ) | (4.1 | ) | ||||
| Purchase of treasury stock | (98.0 | ) | — | |||||
| Issuance cost of line of credit | (3.3 | ) | — | |||||
| Net cash used in financing activities | (105.3 | ) | (4.1 | ) | ||||
| Increase in cash and cash equivalents | 182.6 | 9.5 | ||||||
| Cash and cash equivalents, beginning of period | 717.9 | 808.3 | ||||||
| Cash and cash equivalents, end of period | $ | 900.5 | $ | 817.8 | ||||
| Non-cash transactions: | ||||||||
| Accrued capital expenditures | $ | 7.6 | $ | 6.4 | ||||
| Accrued purchase of treasury stock and excise taxes | 1.0 | — | ||||||
| Lease assets obtained in exchange for new operating lease liabilities | 1.8 | 2.2 | ||||||
Estimates for 2025
The Company is providing the following estimates for certain financial statement items for the 52-week period ending January 31, 2026 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”
| In Millions | ||||||||
| 2025 | 2024 | |||||||
| Estimated | Actual | |||||||
| Depreciation and amortization | $ | 180 | $ | 178 | ||||
| Rentals | 20 | 21 | ||||||
| Interest and debt (income) expense, net | (8 | ) | (14 | ) | ||||
| Capital expenditures | 120 | 105 | ||||||
Forward-Looking Information
This report contains certain forward-looking statements. The following are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995: (a) statements including words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “future,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “continue,” or the negative or other variations thereof; (b) statements regarding matters that are not historical facts; and (c) statements about the Company’s future occurrences, plans and objectives, including those statements under the heading “Estimates for 2025” regarding certain financial statement items for the 52-week period ended January 31, 2026 . The Company cautions that forward-looking statements contained in this report are based on estimates, projections, beliefs and assumptions of management and information available to management at the time of such statements and are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. Forward-looking statements of the Company involve risks and uncertainties and are subject to change based on various important factors. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those factors include (without limitation) general retail industry conditions and macro-economic conditions including inflation, economic recession and changes in traffic at malls and shopping centers; economic and weather conditions for regions in which the Company’s stores are located and the effect of these factors on the buying patterns of the Company’s customers, including the effect of changes in prices and availability of oil and natural gas; the availability of and interest rates on consumer credit; the impact of competitive pressures in the department store industry and other retail channels including specialty, off-price, discount and Internet retailers; changes in the Company’s ability to meet labor needs amid nationwide labor shortages and an intense competition for talent; changes in consumer spending patterns, debt levels and their ability to meet credit obligations; high levels of unemployment; changes in tax legislation; trade disputes and changes in trade policies including the imposition (or threat) of new or increased duties, taxes, tariffs and other charges impacting our products or supply chain; changes in legislation and governmental regulations; adequate and stable availability and pricing of materials, production facilities and labor from which the Company sources its merchandise; changes in operating expenses, including employee wages, commission structures and related benefits; system failures or data security breaches; possible future acquisitions of store properties from other department store operators; the continued availability of financing in amounts and at the terms necessary to support the Company’s future business; fluctuations in SOFR and other base borrowing rates; potential disruption from terrorist activity and the effect on ongoing consumer confidence; epidemic, pandemic or public health issues and their effects on public health, our supply chain, the health and well-being of our employees and customers and the retail industry in general; potential disruption of international trade and supply chain efficiencies; global conflicts (including the ongoing conflicts in the Middle East and Ukraine) and the possible impact on consumer spending patterns and other economic and demographic changes of similar or dissimilar nature, and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, particularly those set forth under the caption “Item 1A, Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2025.
CONTACT:
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
julie.guymon@dillards.com
FAQ
What was Dillard's (DDS) earnings per share in Q1 2025?
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What was Dillard's (DDS) comparable store sales performance in Q1 2025?
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