Home and furniture categories were a bright spot for Dillard’s, but the department store retailer still saw sales slide in the third quarter.
Dillard’s reported net income for the third quarter ended October 31, 2020, of $31.9 million or $1.43 per share, compared to net income of $5.5 million, or $0.22 per share, for the prior year third quarter.
Net sales for the third quarter of 2020 and the third quarter of 2019 were $1 billion and $1.3 billion, respectively. Net sales includes the operations of the company’s construction business, CDI Contractors. Total retail sales (which excludes CDI) for the 13-week periods ended October 31, 2020 and November 2, 2019 were $994.6 million and $1.3 billion, respectively. Total retail sales decreased approximately 25% in the third quarter. Sales in comparable stores for the same period decreased approximately 24%.
Sales of home and furniture significantly outperformed other categories followed by ladies’ accessories and lingerie and cosmetics. Sales of ladies’ apparel were significantly below trend. Sales in the Eastern region moderately outperformed the Central and Western regions, respectively, the company said.
Dillard’s CEO, William Dillard, II said, “We have worked hard on inventory and expense control in unpredictable conditions throughout the pandemic. We achieved a 249 basis point gross margin improvement for the third quarter with ending inventory down 22%. Additionally, we cut expenses $100 million. As we enter this holiday season, one thing we can predict is the dedication of our associates and their exceptional service to our customers.”