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August 12, 2022

Dillard’s posts 10% increase in total retail sales for H1 2022

The company’s retail gross margin during the 26-week period was 44.5% of its sales.

US-based upscale department store chain Dillard’s has recorded $3.13bn in total sales for the first half (H1) of the fiscal year 2022 (FY22), up by 10% from the corresponding period of FY21.

The company’s comparable store sales for the 26 weeks to 30 July also increased by 10%.

Dillard’s reported net income was $414.5m, up from $343.9m in the prior-year period, while its earnings per share (EPS) for H1 2022 were $23.07, compared with $16.03 a year earlier.

The retailer’s consolidated gross margin for the six-month period was 43.7% of its sales, against 41.3% of its sales in FY21, while its retail gross margin improved by 240 basis points of its sales to 44.5% during the half.

Dillard’s CEO William Dillard II said: “Business softened in the quarter as we lapped the strongest second quarter in our history.

“Our first half performance was far better than last year’s with net income up 21%, earnings per share up 44% and gross margin up 240 basis points.

“We repurchased $412m of stock during the half versus $171m last year.”

For the second quarter (Q2) of FY22, Dillard’s total retail sales were $1.55bn, up by 1% from $1.54bn in Q2 2021.

The company’s sales were driven by strong performance in its men’s apparel and accessories and cosmetics categories.

Its net income for the 13-week period dropped from $185.7m to $163.4m year-on-year, while its EPS increased from $8.81 to $9.30 compared with Q2 2021.

Dillard’s retail gross margin for Q2 declined by 20 basis points of its sales to 41.5%, compared to 41.7% a year earlier.

As of 30 July, the company operated 250 stores and 29 clearance centres in 29 US states, as well as an e-commerce service at dillards.com.

Earlier this year, Dillard’s registered a 29.3% increase in net sales for the fourth quarter (Q4) of FY21.