US' Dillard's Q1 FY25 net income falls to $163.8 mn on margin pressure
American department store chain Dillard's, Inc has reported net sales of $1.529 billion in the first quarter (Q1) of fiscal 2025 (FY25) ended May 3, 2025, and net income of $163.8 million, or $10.39 per share.
The company's consolidated gross margin was 43.9 per cent of sales and retail gross margin stood at 45.5 per cent of sales. The retail gross margin decreased moderately in ladies' apparel and was flat in ladies' accessories and lingerie. All other merchandise categories decreased slightly, Dillard's said in a press release.
Dillard's has reported net sales of $1.529 billion and net income of $163.8 million, or $10.39 per share in Q1 2025. Retail gross margin declined to 45.5 per cent, with weaker sales in ladies' apparel and home categories. SG&A expenses fell slightly to $421.7 million. Inventory rose 6 per cent. The company expects $180 million in depreciation and $120 million in capex for full FY25.
The company noted stronger performance in juniors' and children's apparel, and men's clothing and accessories, while home and furniture, shoes, and ladies' apparel underperformed. The retail gross margin declined to 45.5 per cent of sales from 46.2 per cent, mainly due to moderate declines in ladies' apparel and slight decreases across other merchandise categories.
The operating expenses slightly decreased to $421.7 million but rose marginally as a percentage of sales to 27.6 per cent. Ending inventory increased by 6 per cent.
Dillard's reported consolidated selling, general and administrative (SG&A) expenses of $421.7 million, representing 27.6 per cent of sales, compared to $426.7 million, or 27.5 per cent of sales, for the same period in 2024. The $5 million decline in operating expenses was primarily driven by reduced payroll and payroll-related costs, added the release.
For full FY25 ending January 31, 2026, Dillard's has provided estimates based upon current condition. Depreciation and amortisation are projected at $180 million. Rental expenses are expected to be $20 million. Net interest and debt income are estimated at negative $8 million, an improvement from negative $14 million last year. Capital expenditures (capex) are projected to increase to $120 million, up from $105 million in 2024.
'We turned in a relatively good first quarter considering the prevailing economic uncertainty. We kept expenses under control and reported a healthy gross margin. After repurchasing $98 million in stock, we had $1.2 billion in cash and short-term investments remaining,' said William T Dillard, II chief executive officer (CEO) at Dillard's.
Fibre2Fashion News Desk (SG)
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