Dillard's reports rise in Q3 profit

Dillard’s, Inc. reported net income for the 13 weeks ended October 31, 2020 of 31.9 million dollars or 1.43 dollars per share, compared to 5.5 million dollars or 22 cents per share, for the prior year third quarter. The company expects to be in a net operating loss position for the fiscal year. Net sales for the quarter were 1,024.9 million dollars compared to 1,388.3 million dollars in the prior year’s third quarter, while total retail sales excluding CDI were 994.6 million dollars compared to 1,334.2 million dollars, decrease of around 25 percent and comparable stores for the same period decreased approximately 24 percent.

Commenting on the results, Dillard’s Chief Executive Officer William T. Dillard, II stated in a statement: “We achieved a 249 basis point gross margin improvement for the third quarter with ending inventory down 22 percent. Additionally, we cut expenses 100 million dollars.”

Review of Dillard’s Q3 and nine-month results

The company said, sales of home and furniture significantly outperformed the other categories followed by ladies’ accessories and lingerie and cosmetics in the third quarter, while sales of ladies’ apparel were significantly below trend. Sales in the Eastern region moderately outperformed the Central and Western regions, respectively. Consolidated gross margin including CDI improved 249 basis points of sales to 35.7 percent compared to 33.2 percent for the prior year third quarter.

Dillard’s reported a net loss for the 39 weeks of 138.7 million dollars or 6.05 dollars per share compared to net income of 43.4 million dollars or 1.69 dollars per share, for the prior year 39-week period. Net sales for the period were 2,730.6 million dollars compared to 4,280.6 million dollars in the prior year. Total retail sales decline 36 percent to 2,638.8 million dollars. Consolidated gross margin for the same 39-week periods in 2020 and 2019 was 27.2 percent and 32.6 percent of sales, respectively.

Picture:Facebook/Dillard's