Dilliard’s Reports Sales Growth Following Weaker Holiday Season

Dilliard’s has reported sales growth after suffering the same holiday downturn as other department stores.

The 85-year-old retailer released earnings figures Tuesday (Feb. 21) that showed its retail sales and comparable store sales each rose 5% during its most recent fiscal year.

“Fiscal year earnings per share of $50.81 seemed impossible just a couple of years ago, but we have seen what we can do by controlling our inventory and focusing on our customer,” CEO William T. Dillard II said in the release.

The Arkansas-based company said it saw weaker sales at the start of its most recent quarter and during the holiday season, which “led to increased markdowns and stronger January sales compared to the prior year fourth quarter.”

December retail sales figures from the Census Bureau showed a 6.6% monthly drop in department store sales, as well as a 2.5% decline in furniture and home furnishing.

Dilliard’s noted in its release that home and furniture were its weakest categories in its most recent quarter, while cosmetics and women’s apparel were among the stronger selling groups.

“The continued uncertainty around the macroeconomic environment has proven to be more difficult for retailers to weather as many consumers are more hesitant to spend in comparison to 2021 holiday spending,” Mike Rittler, head of Retail Card Services at TD Bank, told PYMNTS at the time.

Another department store chain, Macy’s, warned last month that its fourth-quarter sales — which includes the holiday period — would come in at the lower end of its forecast.

Department stores were able to rebound last month, however, seeing a 17.5% monthly increase in sales during January.

Dilliard’s, whose stock is up 74% over the past year, said in the Tuesday release it plans to open a new store at the Empire Mall in Sioux Falls, South Dakota, next spring. It will mark the 30th state where Dillaird’s — which has around 250 stores — does business.

It closed three locations during the first quarter of 2023, all of them based in malls. America’s malls are in a precarious place, with several major shopping centers defaulting on debt or facing foreclosure.

“The mall business can provide a preview to the challenges owners and lenders of office buildings may face in the coming years,” Vince Tibone, a retail analyst at Green Street, said in an interview with Bloomberg last week.

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