Dillard's Profit Surges 518% in Q3

Dillard's Profit Surges 518% in Q3
Dillard's headquarters in Little Rock. (Stephanie Dunn)

Dillard's Inc. of Little Rock (NYSE: DDS) on Thursday morning reported fiscal third-quarter profit of $197.3 million, a 518% increase from the $31.9 million in profit reported the same quarter last year.

On a per-share basis, the retail company said it had profit of $9.81.

The department store operator posted revenue of $1.48 billion in the period.

Company CEO William Dillard said in a news release that Dillard's ended the quarter with a cash position of $620 million after repurchasing $239 million in stock. 

The company reported that compared to the third quarter of 2019, retail gross margin for the third quarter of 2021 improved 1,221 basis points of sales to 46.7% from 34.5%. It attributed the substantial improvement in gross margin to continued strong consumer demand and better inventory management, leading to decreased markdowns in the third quarter of 2021.

Dillard's stock has skyrocketed from around $52 last November to a closing price just below $300 on Wednesday. It continued rising Thursday morning in premarket trading. 

Dillard's operates 250 locations and 30 clearance centers spanning 29 states. The company said it's monitoring supply chain issues, particularly shipping delays and disruptions in the global transportation network. 

The Associated Press contributed to this report