Dillard’s, Inc. Reports First Quarter Results
Dillard's, Inc. (NYSE: DDS) reported strong operating results for the 13 weeks ending May 1, 2021, achieving a net income of $158.2 million or $7.25 per share, a significant recovery from a net loss of $162 million in the prior year. Total retail sales surged 73% to $1.3 billion, although down 9% compared to 2019 levels. Gross margin improved to 42.7% as a result of better inventory management and strong demand. The company also repurchased $58.8 million in shares, ending the quarter with $616 million in cash.
- Net income increased to $158.2 million from a loss of $162 million.
- Total retail sales rose 73% to $1.3 billion.
- Gross margin improved to 42.7% from 12.8% the previous year.
- Share repurchases totaled $58.8 million during the quarter.
- Cash flow from operations was $302.4 million.
- Total retail sales decreased 9% compared to 2019.
- Retail sales in comparable stores declined 6% versus 2019.
Dillard’s, Inc. (NYSE: DDS) (the “Company” or “Dillard’s”) announced operating results for the 13 weeks ended May 1, 2021. This release contains certain forward-looking statements. Please refer to the Company’s cautionary statements included below under “Forward-Looking Information.”
Dillard's Chief Executive Officer William T. Dillard, II stated, "There are a lot of good things to say about this quarter. As vaccinations increased, stimulus money was released and warmer weather arrived, we saw sales increase over 2019 levels, with momentum continuing throughout the quarter. We are pleased to report record performances in gross margin and earnings per share. With strong cash flow, we accomplished
Due to the significant impact of COVID-19 on prior year figures, this release will include certain comparisons to 2019 to provide additional context.
Selected Financial Metrics of the First Quarter (Compared to the Prior Year First Quarter)
-
Total retail sales increased
73% . -
Net income of
$158.2 million compared to a net loss of$162.0 million -
Net income of
$7.25 per share compared to net loss of$6.94 per share -
Retail gross margin of
42.7% compared to12.8% -
Inventory decreased approximately
17% -
Operating expenses were
$336.6 million (25.3% of sales) compared to$290.4 million (36.9% of sales). -
Share repurchases of
$58.8 million during the quarter -
Cash flow from operations of
$302.4 million compared to$111.1 million of cash used in operations -
Ending cash of
$616 million compared to$70 million
First Quarter Results
Dillard’s reported net income for the 13 weeks ended May 1, 2021 of
Sales
Net sales for the 13 weeks ended May 1, 2021 and the 13 weeks ended May 2, 2020 were
Total retail sales (which excludes CDI) for the 13-week periods ended May 1, 2021 and May 2, 2020 were
Comparing to the first quarter of 2019, total retail sales for the 13-week periods ended May 1, 2021 and May 4, 2019 were
Gross Margin / Inventory
Consolidated gross margin (which includes CDI) for the 13 weeks ended May 1, 2021 improved significantly to
Retail gross margin (which excludes CDI) for the 13 weeks ended May 1, 2021 improved significantly to
Compared to the first quarter of 2019, retail gross margin improved 489 basis points of sales to
Management attributes the substantial improvement in gross margin to better inventory management and customer demand leading to decreased markdowns in the first quarter of 2021.
Inventory decreased approximately
Selling, General & Administrative Expenses
Consolidated selling, general and administrative expenses ("operating expenses") for the 13 weeks ended May 1, 2021 were
Comparing to the first quarter of 2019, retail operating expenses for the 13 weeks ended May 1, 2021 and May 4, 2019 were
The decrease is primarily due to decreased payroll and payroll related expenses.
Share Repurchase
During the 13 weeks ended May 1, 2021, the Company purchased
Store Information
The Company operates 250 Dillard’s locations and 31 clearance centers spanning 29 states and an Internet store at dillards.com. Dillard's has closed and sold its Cortana Mall location in Baton Rouge, Louisiana (120,000 square feet). Total square footage at May 1, 2021 was 47.9 million square feet.
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13 Weeks Ended |
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FAQ
What were Dillard's net income figures for Q1 2021?
Dillard's reported a net income of $158.2 million or $7.25 per share for Q1 2021.
How much did Dillard's total retail sales increase in Q1 2021?
Dillard's total retail sales increased by 73% to $1.3 billion in Q1 2021.
What was the gross margin for Dillard's in Q1 2021?
Dillard's gross margin improved to 42.7% in Q1 2021, compared to 12.8% in the prior year.
What share repurchase activity did Dillard's engage in during Q1 2021?
Dillard's repurchased approximately $58.8 million worth of shares during Q1 2021.
How does Dillard's Q1 2021 retail sales compare to 2019 levels?
Dillard's retail sales decreased by 9% compared to Q1 2019.
Dillards Inc.
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Department Stores
Retail-department Stores
United States of America
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