Dillard’s, an upscale American department store chain, has reported net sales of $1.567 billion in the second quarter o fiscal 2023 (Q2 FY23), down from $1.589 billion in the previous year. Total retail sales, which reached $1.499 billion, decreased by 3 per cent compared to $1.553 billion in the corresponding period in FY22. Sales in comparable stores also decreased by 3 per cent.

The company noted that ladies’ accessories and lingerie, ladies’ apparel, and shoes were the weakest categories, reflecting ongoing consumer caution, particularly during the early weeks of the second quarter.

American retailer Dillard’s Q2 FY23 net sales were $1.567 billion, down from $1.589 billion YoY.
Total retail sales decreased by 3 per cent, and net income fell to $131.5 million from $163.4 million.
Consolidated gross margin dropped to 38.8 per cent, and operating expenses rose to $412.6 million, reflecting a cautious consumer environment.

Net income for Q2 FY23 was $131.5 million, a notable decrease from $163.4 million in the previous year’s second quarter, the company said in a press release.

The consolidated gross margin for the 13-week period was 38.8 per cent of sales, down from 40.8 per cent for the prior year second quarter. Retail gross margin was 40.4 per cent of sales, compared to 41.5 per cent in Q2 FY22.

The gross margin increased moderately in ladies’ accessories and lingerie compared to the prior year second quarter. Conversely, it decreased significantly in men’s apparel and accessories, and moderately in juniors’ and children’s apparel.

Inventory levels remained unchanged (as a percentage) for the Q2 FY23, ending July 29, 2023, compared to the same period last year.

Consolidated selling, general, and administrative expenses, also referred to as operating expenses, for Q2 FY23 were $412.6 million (26.3 per cent of sales). This is an increase compared to $401.3 million (25.3 per cent of sales) in the previous year’s second quarter.

“The cautious consumer we noted in the first quarter continued in the first few weeks of the second, leading to a sales decline of 3 per cent. We exited the quarter with inventory flat year over year while maintaining a strong retail gross margin of 40.4 per cent. We repurchased $103 million of stock and ended the quarter with $924 million in cash and short-term investments,” said Dillard’s chief executive officer William T Dillard, II.

Fibre2Fashion News Desk (DP)