From Financial Modeling Prep: 2025-02-25 12:23:00

Dillard’s (NYSE:DDS) reported stronger-than-expected Q4 earnings of $13.48 per share, beating estimates of $9.35. Despite revenue reaching $2.02 billion, up from the $1.95 billion forecast, shares dropped over 4% due to shrinking gross margins and a 1% decline in total retail sales on a comparable basis.

The company’s stock fell after the earnings report, attributed to a decrease in retail gross margin to 36.1% from 37.7% the previous year. Dillard’s noted cost controls amid a 1% sales decline, but margin pressures persisted, leading to investor concerns.

Comparable store sales dropped 1% year-over-year, with home, furniture, and cosmetics performing well, while men’s apparel, accessories, and footwear lagged. Inventory levels rose by 7%, raising worries about excess stock if consumer demand remains weak.

In fiscal year 2024, Dillard’s net income fell to $593.5 million ($36.82 per share) from $738.8 million ($44.73 per share) in 2023, reflecting a challenging retail environment. The company faces headwinds from margin pressures and softening consumer demand, impacting its financial performance.



Read more at Financial Modeling Prep:: Dillard’s Tops Q4 Estimates but Stock Drops 4% as …