Dillard's 1Q comp store sales +3%, est. +1.08% (2 est.)

Dillard's Inc. (NYSE: DDS) reported first-quarter fiscal 2025 results, with comparable store sales increasing by 3% year over year, surpassing the estimated range of 1.08% based on two analyst forecasts. The company's performance reflects a strong start to the fiscal year amid a challenging retail environment.

Net sales for the 13 weeks ended May 3, 2025, totaled $1.529 billion, a slight decline of 1.4% compared to the prior-year quarter. However, the increase in comparable store sales indicates improved performance in key merchandise categories, including juniors' and children's apparel and men's clothing and accessories according to the company's report.

Despite the top-line challenges, Dillard's reported net income of $163.8 million, or $10.39 per share, which exceeded the prior-year earnings per share of $11.09. The company attributed the strong earnings performance to effective cost control and a healthy gross margin of 45.5% of sales.

Dillard's also continued its share repurchase program, spending $98 million to repurchase approximately 276,000 shares of Class A Common Stock during the quarter. As of May 3, 2025, the company had $175 million remaining under its current share repurchase authorization.

Looking ahead, Dillard's expects to maintain its focus on inventory management and expense control while navigating macroeconomic uncertainties. The company's performance in the first quarter highlights its ability to adapt to shifting consumer demand and maintain profitability in a competitive retail landscape.