Dillard’s Q1 Income Falls 9% but Tops Wall Street Forecasts

A Dillard's location in Altamonte Springs, Florida (Shutterstock)

Dillard’s Inc. of Little Rock (NYSE: DDS) on Thursday reported that first-quarter income fell 9% as sales weakened in home and furniture, shoes and women’s apparel.

Income was $163.8 million, down from $180 million in the same quarter a year ago. Per share, earnings came to $10.39.

The results exceeded Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $9.10 per share.

The department store operator posted sales of $1.53 billion in the period, down 1.7% from a year ago and below Street forecasts. Three analysts surveyed by Zacks expected $1.54 billion.

Stronger performing categories were juniors’ and children’s apparel and men’s clothing and accessories.

Operating expenses came to $421.7 million, or 27.6% of sales, compared to $426.7 million, or 27.5%, of sales a year ago. The decrease was primarily due to lower payroll and payroll-related expenses.

“We turned in a relatively good first quarter in light of the prevailing economic uncertainty,” CEO William T. Dillard II said in a statement. “We kept expenses under control and reported a healthy gross margin” of 45.5%, compared to 46.2% in the first quarter of 2024.

The company repurchased $98 million in stock during the quarter and had $1.2 billion in cash and short-term investments remaining.

Dillard’s operates 272 stores, including 28 clearance centers.

Shares of the Dillard’s climbed more than 5% to $409.24 on Thursday morning. Over the past 12 months, shares were down 10%.

The company’s annual shareholders meeting is scheduled for Saturday morning at its headquarters in Little Rock.