LITTLE ROCK, Ark., Aug. 15, 2024 (GLOBE NEWSWIRE) -- Dillard's, Inc. (NYSE:DDS) (the "Company" or "Dillard's") announced operating results for the 13 and 26 weeks ended August 3, 2024. This release contains certain forward-looking statements. Please refer to the Company's cautionary statements included below under "Forward-Looking Information." Dillard's Chief Executive Officer William T. Dillard, II stated, "We are disappointed with our weak performance in the second quarter. While the consumer environment remained challenged, our expenses were up, squeezing our profitability. We are working to address this. We ended the quarter with over $1 billion in cash and short-term investments." Highlights of the 26 Weeks (compared to the prior year 26 weeks): Total retail sales decreased 3% Comparable store sales decreased 3% Net income of $254.5 million compared to $333.0 million Earnings per share of $15.68 compared to $19.89 Retail gross margin of 42.7% of sales compared to 43.0% of sales Operating expenses were $860.3 million (28.3% of sales) compared to $818.9 million (26.0% of sales) Ending inventory was essentially unchanged 26-Week Results Dillard's reported net income for the 26 weeks ended August 3, 2024 of $254.5 million, or $15.68 per share, compared to $333.0 million, or $19.89 per share, for the 26 weeks ended July 29, 2023. Included in net income for the prior year 26-week period is a pretax gain of $2.0 million ($1.5 million after tax or $0.09 per share) primarily related to the sale of a store property. Sales – 26 Weeks Net sales for the 26 weeks ended August 3, 2024 and July 29, 2023 were $3.039 billion and $3.151 billion, respectively. Net sales includes the operations of the Company's construction business, CDI Contractors, LLC ("CDI"). Total retail sales (which excludes CDI) for the 26 weeks ended August 3, 2024 and July 29, 2023 were $2.919 billion and $3.013 billion, respectively. Total retail sales decreased 3% for the 26-week period ended August 3, 2024 compared to the 26-week period ended July 29, 2023. Sales in comparable stores for that same period decreased 3%. Gross Margin – 26 Weeks Consolidated gross margin for the 26 weeks ended August 3, 2024 was 41.2% of sales compared to 41.3% of sales for the 26 weeks ended July 29, 2023. Retail gross margin (which excludes CDI) for the 26 weeks ended August 3, 2024 was 42.7% of sales compared to 43.0% of sales for the 26 weeks ended July 29, 2023. Inventory was essentially unchanged at August 3, 2024 compared to July 29, 2023. Selling, General & Administrative Expenses – 26 Weeks Consolidated selling, general and administrative expenses ("operating expenses") for the 26 weeks ended August 3, 2024 were $860.3 million (28.3% of sales) compared to $818.9 million (26.0% of sales) for the 26 weeks ended July 29, 2023. The increase in operating expenses is primarily due to increased payroll expenses. Highlights of the Second Quarter (compared to the prior year second quarter): Total retail sales decreased 5% Comparable store sales decreased 5% Net income of $74.5 million compared to $131.5 million Earnings per share of $4.59 compared to $7.98 Retail gross margin of 39.1% of sales compared to 40.4% of sales Operating expenses were $433.6 million (29.1% of sales) compared to $412.6 million (26.3% of sales) Second Quarter Results Dillard's reported net income for the 13 weeks ended August 3, 2024 of $74.5 million, or $4.59 per share, compared to $131.5 million, or $7.98 per share, for the 13 weeks ended July 29, 2023. Sales – Second Quarter Net sales for the 13 weeks ended August 3, 2024 and July 29, 2023 were $1.490 billion and $1.567 billion, respectively.   Total retail sales for the 13 weeks ended August 3, 2024 and July 29, 2023 were $1.426 billion and $1.499 billion, respectively. Total retail sales decreased 5% for the 13-week period ended August 3, 2024 compared to the 13-week period ended July 29, 2023. Sales in comparable stores for that same period decreased 5%. Cosmetics was the strongest performing merchandise category, with the weakest performances noted in men's apparel and accessories and shoes. Gross Margin – Second Quarter Consolidated gross margin for the 13 weeks ended August 3, 2024 was 37.6% of sales compared to 38.8% of sales for the 13 weeks ended July 29, 2023. Retail gross margin for the 13 weeks ended August 3, 2024 was 39.1% of sales compared to 40.4% of sales for the 13 weeks ended July 29, 2023. The retail gross margin performance was essentially flat compared to the prior year second quarter in men's apparel and accessories and decreased slightly in cosmetics and juniors' and children's apparel. Moderate gross margin decreases were noted in shoes, ladies' accessories and lingerie, home and furniture, and ladies' apparel. Selling, General & Administrative Expenses – Second Quarter Consolidated operating expenses for the 13 weeks ended August 3, 2024 were $433.6 million (29.1% of sales) compared to $412.6 million (26.3% of sales) for the 13 weeks ended July 29, 2023. The increase in operating expenses was primarily due to increased payroll expenses. The Company is working to better align expenses to sales performance. Other Information The Company closed its Eastwood Mall Clearance Center in Niles, Ohio (120,000 square feet) in June, 2024. The Company operates 273 Dillard's stores, including 28 clearance centers, spanning 30 states (totaling 46.5 million square feet) and an Internet store at dillards.com.   Total shares outstanding (Class A and Class B Common Stock) at August 3, 2024 and July 29, 2023 were 16.2 million and 16.4 million, respectively. Dillard's, Inc. and SubsidiariesCondensed Consolidated Statements of Income (Unaudited)(In Millions, Except Per Share Data)                                                 13 Weeks Ended   26 Weeks Ended       August 3, 2024   July 29, 2023   August 3, 2024   July 29, 2023                   % of               % of               % of               % of             Net         Net         Net         Net       Amount   Sales   Amount   Sales   Amount   Sales   Amount   Sales   Net sales   $ 1,489.9     100.0   %   $ 1,567.4   100.0 %   $ 3,039.0     100.0   %   $ 3,151.3   100.0 % Service charges and other income     24.7     1.7       30.0   1.9     48.5     1.6       60.0   1.9         1,514.6     101.7       1,597.4   101.9     3,087.5     101.6       3,211.3   101.9                                               Cost of sales     930.3     62.4       958.8   61.2     1,788.2     58.8       1,850.1   58.7   Selling, general and administrative expenses     433.6     29.1       412.6   26.3     860.3     28.3       818.9   26.0   Depreciation and amortization     46.4     3.1       44.8   2.9     92.5     3.0       90.6   2.9   Rentals     4.9     0.3       5.0   0.3     10.0     0.3