Dillard's, Inc. reported net sales for the fiscal third quarter were $1.43 billion for the 13 weeks ended November 2 (Q3, third quarter), compared to $1.48 billion in the 13 weeks ended October 28, 2023 (the 2023 Q3 period). Net sales includes the operations of the company's construction business, CDI Contractors, LLC (CDI).
Total retail sales (which excludes CDI) declined 4 percent to $1.36 billion in the 2024 third quarter, compared to $1.41 billion for the the 2023 Q3 period. Sales in comparable stores for that same period decreased 4 percent as well. Cosmetics was said to be the strongest performing merchandise category, with the weakest performances noted in juniors' and children's apparel and men's apparel and accessories.
Income Statement Summary
Consolidated gross margin for the third quarter was 42.6 percent of sales this year, compared to 43.5 percent of sales for the the 2023 Q3 period.
Retail gross margin for the third quarter was 44.5 percent of sales this year, compared to 45.3 percent of sales for the the 2023 Q3 period. Compared to the prior-year third quarter, retail gross margin reportedly increased slightly in ladies' accessories and lingerie and was flat in men's apparel and accessories and cosmetics. Gross margin reportedly decreased slightly in shoes and juniors' and children's apparel and decreased moderately in home and furniture and ladies' apparel.
Consolidated selling, general and administrative expenses ("operating expenses") for the 13 weeks ended November 2, 2024 decreased $2.9 million to $418.9 million (29.4 percent of sales) compared to $421.8 million (28.6 percent of sales) for the the 2023 Q3 period. Compared to the prior year third quarter, payroll expense was flat while insurance benefit expense increased. The Company worked to control expenses during the quarter, and these efforts will continue.
Dillard's Inc. reported net income of $124.6 million, or $7.73 per share, for the third quarter, compared to $155.3 million, or $9.49 per share, for the the 2023 Q3 period. Included in net income for the the 2023 Q3 period is a pretax gain of $4.0 million ($3.1 million after tax or 19 cents per share) said to be primarily related to the sale of a store property.
Summary of 39-Week Year-to-Date (YTD) Period
Net sales for the 39 weeks ended November 2, 2024 and October 28, 2023 were $4.47 billion and $4.63 billion, respectively.
Balance Sheet Summary
Inventory increased 3 percent at quarter-end, compared to third quarter-end last year. The company noted a shorter selling period between Thanksgiving and Christmas this year.
Share Repurchase
During the 13 weeks ended November 2, 2024 the company purchased $107.0 million (approximately 294,000 shares) of Class A Common Stock at an average price of $364.43 per share. As of November 2, 2024, authorization of $287.0 million remained under the May 2023 program.
Total shares outstanding (Class A and Class B Common Stock) at November 2, 2024 and October 28, 2023 were 15.9 million and 16.3 million, respectively.
Other Information
The company operates 273 Dillard's stores, including 28 clearance centers, spanning 30 states (totaling 46.4 million square feet) and an Internet store at dillards.com.