Dillard’s business softens in Q2; to enter a new state
Dillard’s saw its business weaken in the second quarter as consumers began to rein in their spending.
The department store retailer also confirmed it will open a store at The Empire Mall, in Sioux Falls, S.D., in the fall of 2023. It will mark Dillard’s 30th state of operation.
Dillard’s has announced the upcoming closing of locations in Sikes Senter in Wichita Falls, Texas, and East Hills Mall in St. Joseph, Missouri. Both locations are expected to close during the third quarter.
The company reported that its net income rose to $163.4 million, or earnings per share of $9.30, in the quarter ended June 30, compared to net income of $185.7 million, or earnings per share of $8.81, in the year-ago period.
Net sales totaled $1.589 billion, up from $1.570 billion in the year-ago quarter. (Net sales include the operations of the company’s construction business, CDI Contractors.)
Total retail sales inched up to $1.553 billion from $1.539 billion. Comp-store sales were flat. Sales in comparable stores were flat.
Dillard’s stronger performing categories included men’s apparel and accessories and cosmetics. Ladies’ apparel was the weakest performing category.
“Business softened in the quarter as we lapped the strongest second quarter in our history,” said CEO William T. Dillard, II. “Our first half performance was far better than last year’s with net income up 21%, earnings per share up 44% and gross margin up 240 basis points.”
Dillard’s repurchased $412 million of stock during the half versus $171 million last year.
The company operates 250 stores and 29 clearance centers spanning 29 states.