Dillard's(DDS)2025-06-06 20:17Financial Performance - Total retail sales declined by 2% and comparable store sales decreased by 1% compared to the prior year first quarter [58] - Net income for the three months ended May 3, 2025, was 10.39 per share), down from 11.09 per share) in the prior year [59] - Gross margin as a percentage of net sales decreased to 43.9% from 44.6% year-over-year [83] - Net sales from the retail operations segment decreased by 4.5 million, or approximately 8% [79] - The number of sales transactions decreased by 3%, while the average dollars per sales transaction increased by 2% [77] Expenses and Cash Flow - Selling, general and administrative expenses decreased to 426.7 million (27.5% of sales) in the prior year [59] - Total Selling, General and Administrative Expenses (SG&A) decreased by 421.69 million for the three months ended May 3, 2025, compared to 232.6 million, down from 11.75 million to 244.38 million for the same period in 2024, primarily due to lower sales [92] - Capital expenditures were 35.2 million for the same period in 2024, primarily related to equipment purchases and store construction [97] Inventory and Store Operations - Total inventory increased by 6% as of May 3, 2025, compared to the previous year [85] - The company operated 272 stores, including 28 clearance centers, as of May 3, 2025 [61] Shareholder Actions - During the three months ended May 3, 2025, the Company repurchased 0.3 million shares of Class A Common Stock at an average price of 98 million [102] Tax and Income - The estimated federal and state effective income tax rate for fiscal 2025 is expected to approximate 23% [91] - The Company recognized income of 11.6 million from the former Wells Fargo Alliance for the same period in 2024 [95] Strategic Focus and Market Conditions - The company is focusing on future income and cash flows from a new credit program with Citi [108] - There are plans for opening new stores while evaluating the closure of existing ones [108] - The company is managing costs amid inflation and trade restrictions, including tariffs [108] - Labor shortages and competition for talent are impacting the company's ability to meet labor needs [108] - Changes in consumer spending patterns and economic conditions are being closely monitored [108] - The company is assessing the impact of potential disruptions from global conflicts on consumer spending [108] - There have been no material changes in market risk disclosures since the last annual report [109]