NEW YORK - Dillard's Inc. (NYSE:DDS) reported a sharp decline in second-quarter profit as expenses increased, sending shares down 5.6% in premarket trading Thursday.
The department store chain posted earnings of $4.59 per share for the quarter ended August 3, 2024, down from $7.98 per share in the same period last year. Revenue fell 5% to $1.49 billion, compared to $1.57 billion a year ago.
Comparable store sales decreased 5% YoY. Retail gross margin declined to 39.1% of sales from 40.4% in the prior year quarter. Operating expenses rose to $433.6 million, or 29.1% of sales, up from $412.6 million, or 26.3% of sales, a year earlier.
"We are disappointed with our weak performance in the second quarter," said CEO William T. Dillard, II. "While the consumer environment remained challenged, our expenses were up, squeezing our profitability. We are working to address this."
The company noted that cosmetics was the strongest performing merchandise category, while men's apparel and accessories and shoes were the weakest.
Dillard's ended the quarter with over $1 billion in cash and short-term investments. The company operates 273 stores across 30 states.
For fiscal 2024, Dillard's expects capital expenditures of $120 million and depreciation and amortization of $185 million.
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