Fri, Jun 6, 8:18 PM (37 days ago)
### Dillard's, Inc. (DDS) Q1 2025 Financial Summary **Financial Health and Performance:** Dillard's, Inc. reported a relatively good first quarter performance despite economic uncertainty. The company executed expense control and maintained strong gross margins. Net sales slightly declined by 1.3% to $1,528.9 million compared to the prior year, with a 2% decline in total retail sales and a 1% decline in comparable store sales. Gross margin was 43.9% of sales, down from 44.6% in the prior year. Inventory increased by 6%. Net income was $163.8 million ($10.39 per share), down from $180.0 million ($11.09 per share) in the prior year. Net cash provided by operating activities was $232.6 million, a decrease from $244.4 million in the prior year. **Revenue and Profit Margins:** - **Net Sales:** $1,528.9 million, down 1.3% from the prior year. - **Gross Margin:** 43.9% of sales, down from 44.6%. - **Net Income:** $163.8 million, down from $180.0 million. - **Earnings per Share (EPS):** $10.39, down from $11.09. **Cash Flow:** - **Operating Activities:** $232.6 million, down from $244.4 million. - **Investing Activities:** $55.3 million, up from a negative $230.8 million. - **Financing Activities:** -$105.3 million, down from -$4.1 million. **Segment Performance:** - **Retail Operations:** Sales declined by 2%, with a 1% decline in comparable stores. Gross margin was 45.5% of sales, down from 46.2%. - **Construction Segment:** Sales increased by 8%, with a gross margin of 4.8% of sales. **Trends and Uncertainties:** - **Economic Uncertainty:** The company noted continued execution of expense control and strong gross margin performance despite economic uncertainty. - **Inventory Management:** Inventory increased by 6%, with a focus on managing markdowns and monitoring inflation and trade restrictions. - **Credit Card Program:** The new Citibank Alliance is expected to initially yield less income than the previous Wells Fargo Alliance. **Future Operations Impact:** - **Capital Expenditures:** $16.9 million, primarily for equipment purchases and store construction/remodeling. - **Stock Repurchases:** $98.0 million spent on repurchasing 0.3 million shares, with $175.0 million of authorization remaining. - **Credit Facility:** No borrowings outstanding, with $774.7 million of unutilized availability. **Conclusion:** Dillard's, Inc. demonstrated resilience in a challenging economic environment, maintaining strong gross margins and executing expense control. However, the company faces uncertainties related to economic conditions, inventory management, and the impact of the new credit card program. The focus on capital expenditures and stock repurchases indicates a strategic approach to future growth and shareholder value.