Fri, Jun 7, 8:21 PM (136 days ago)
Dillard's, Inc. reported a challenging consumer environment in Q1 2024, with net sales decreasing by 2.2% to $1.55 billion from $1.58 billion in Q1 2023. Despite this, retail gross margin improved to 46.2% from 45.6%, driven by effective inventory control and product offerings. Net income fell to $180 million ($11.09 per share) from $201.5 million ($11.85 per share) in Q1 2023. SG&A expenses rose by $20.3 million, primarily due to increased payroll costs, reaching 27.5% of sales. Cash flow from operations decreased to $244.4 million from $280.9 million. The company ended the quarter with $817.8 million in cash and cash equivalents and $347.2 million in short-term investments, maintaining a strong liquidity position. No shares were repurchased during the quarter, leaving $394 million available under the current repurchase authorization. Looking ahead, the new credit card program with Citibank may initially yield lower income than the previous Wells Fargo Alliance.