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Dillard’s quarterly earnings, sales rise

Share price soars 10.46% on report by Serenah McKay | May 13, 2022 at 1:51 a.m.
Graphs showing Dillard's Inc. first quarter information.

Dillard's Inc. reported Thursday that its first-quarter net sales rose 21%, to $1.61 billion.

The Little Rock-based department store chain reported net income of $251 million, or $13.68 per share, for the quarter that ended April 30, compared with net income of $158.2 million, or $7.25, in the same period last year.

The results far surpassed analysts' average earnings estimate of $6.74 per share. Net income included an after-tax gain of $5.6 million related to the sale of a store property.

Dillard's net sales include operations of the company's construction business, CDI Contractors LLC, as well as merchandise sales.

The numbers, released before the stock markets opened, sent Dillard's share price soaring. The shares rose $29.62, or 10.46%, on Thursday to close at $312.76 on the New York Stock Exchange. The company's shares have traded between $97.51 and $416.71 in the past year.

Total retail sales, which exclude CDI, grew 22% to $1.58 billion. The apparel categories across the board, including men's accessories, led Dillard's sales performance.

Chief Executive Officer William Dillard II said in the earnings report that customers responded well to the stores' merchandise in the first quarter, producing a 23% increase in sales at stores open at least a year. These sales, also called same-store sales, are considered a key indicator of a retailer's health.

That sales increase produced a record-high gross margin of 47.3%, Dillard said.

The chain didn't report same-store sales in last year's first quarter since so many of its stores were temporarily closed the previous year because of the pandemic.

The retailer reported cash flow from operations of $365.2 million, compared with $302.4 million in last year's first quarter. Dillard's ended the quarter with $862.2 million in cash, up 40% from last year's $616 million.

Dillard's bought $185 million in stock during the quarter, at an average price of $253.7 per share under its share repurchase program.

The company operates 251 stores and 29 clearance centers as well as its e-commerce business. It closed one clearance center, in Tampa, Fla., during the quarter.

Print Headline: Dillard’s quarterly earnings, sales rise


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