Total retail sales at Dillard’s (not including the company’s construction business) decreased by 1% year over year in Q1, reaching .49 billion, with store comps down by 2%. However, the retail gross margin expanded to 46.2% from 45.6% compared to the previous year. Inventory also saw a 2% decrease from April 29, 2023, while net income fell by 10.7% to 0 million.
In March, Dillard’s opened a new store at The Empire Mall in Sioux Falls, South Dakota, expanding its fleet to a total of 274 stores, including 29 clearance centers, across 30 states. Additionally, in July, the department store is set to close its Eastwood Mall Clearance Center in Ohio.
Despite facing challenges, Dillard’s managed to surpass expectations by beating projections made by UBS analysts. CEO William Dillard attributed this success to focusing on profitable sales through inventory control and offering engaging products. The company reported exceeding billion in cash and short-term investments for the first time in its history.
Cosmetics sales performed well for Dillard’s, while men’s apparel and accessories had weaker performance. The department store also saw increases in gross margin for home and furniture, ladies’ accessories, and lingerie. They also launched various merchandising initiatives in the first quarter to set themselves apart from competitors.
One of the initiatives included partnering with stylist Mary Glenn McElveen to create a limited-edition capsule collection. Dillard’s also collaborated with influencer Caelynn Bell and opened The Coterie Shop, a luxury concept offering designer merchandise. These initiatives are part of Dillard’s strategic efforts to differentiate its assortment and attract customers.
