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NEW YORK -On Tuesday, Dillard’s Inc. (NYSE:DDS) reported fourth-quarter earnings that beat analyst expectations, but its stock tumbled -2.12% as gross margins declined amid a challenging retail environment.
The department store chain posted earnings per share of $13.48 for the quarter ended February 1, 2025, surpassing the analyst consensus of $9.35. Revenue came in at $2.02 billion, above estimates of $1.95 billion.
However, Dillard’s shares fell 5.26% following the results as retail gross margin declined to 36.1% from 37.7% in the year-ago quarter. Total (EPA:TTEF) retail sales decreased 1% on a comparable 13-week basis.
"With sales down 1%, we worked on controlling expenses but lost some steam in gross margin," said CEO William T. Dillard II in a statement.
Comparable store sales fell 1% YoY for the quarter. The company said home and furniture and cosmetics were stronger performing categories, while men’s apparel and accessories and shoes were weaker.
Inventory levels increased 7% compared to the prior year, potentially raising concerns about excess stock amid softening consumer demand.
For the full fiscal year 2024, Dillard’s reported net income of $593.5 million, or $36.82 per share, down from $738.8 million, or $44.73 per share, in fiscal 2023.
The company operated 272 Dillard’s stores, including 28 clearance centers, across 30 states as of the quarter’s end.
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