Daily Newsletter

13 November 2023

Daily Newsletter

13 November 2023

Dillard’s retail sales declines 6% in Q3 FY23

The retailer’s net income for the year-to-date was $488.3m or $29.38 per share.

Jangoulun Singsit November 10 2023

US department store chain Dillard’s has reported that its retail sales declined 6% to $1.409bn in the third quarter (Q3) of fiscal year (FY) 2023, compared with $1.49bn in FY22.

The company’s Q3 net sales, which includes its construction business, CDI Contractors, were $1.47bn. Sales in comparable stores also decreased by 6%.

During the 13 weeks ended 28 October 2023, the net income of Dillard’s was $155.3m, down from $187.9m in Q3 FY22.

Its earnings per share (EPS) were $9.49 in Q3 FY23 against $10.96 in the prior year quarter.

Retail gross margin for Q3 FY23 was 45.3% of sales compared to 45.7% of sales a year ago and its consolidated gross margin was 43.5% of sales in the quarter.

Dillard’s chief executive officer William Dillard II said: “The sales environment remained challenging in the third quarter with particular weakness beginning in September.

“Our focus on producing profitable sales with inventory control paid off - with retail gross margin of 45.3% and inventory down 1% year over year. We repurchased $48m of stock and had $893m of cash and short-term investments remaining.”

For the year-to-date, Dillard’s net income was $488.3m, down from $602.5m in the same period last year.

Its EPS were $29.38 during the 39-week period compared to $34.05 a year ago.

The company’s total retail and comparable store sales during the period decreased by 5% and 4%, respectively.

As of the end of the quarter, Dillard’s operated 273 stores, including 27 clearance centres in 29 states.

Ecommerce market dynamics

The emergence of ecommerce has made it imperative that companies understand consumer behavior, deliver personalized service, and offer competitive pricing models. Ecommerce giants like Alibaba and Amazon dominate the space, supported by huge customer bases, robust mobile payment platforms, and technology expertise in areas like AI. Smaller players focus on disruptive business models, such as subscription services, to make their mark. Per GlobalData, the ecommerce market was valued at $5.9 trillion in 2022 and is expected to grow at a CAGR of >9% by 2027.

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