US fashion retailer Dillard's posts multifold rise in Q3 net income

20 Nov '21

2 min read

Pic: Dillard's

Dillard's Inc, a US based luxury department store chain, has reported growth in its sales to $1,481.0 million in the third quarter (Q3) of FY21 ended on October 30, 2021, compared to the sales of $1,024.9 million in the same period of previous fiscal. Net income for the quarter recorded a sharp jump to $197.3 million (Q3 FY20: $31.9 million).

Total retail sales (which excludes company’s construction business) for the quarter rose to $1,460.2 million from sales of $994.6 million in the same period of 2020, and from $1,334.2 million of sales in the pre-pandemic period. Comparing to the Q3 of FY19, Dillard’s sales of juniors' and children's apparel and men apparel and accessories significantly outperformed the other categories.

Cost of sales for the quarter improved to $796.3 million ($658.7 million), while selling, general and administrative expenses rose to $393.2 million ($318.2 million). The consolidated gross margin expanded significantly to 46.2 per cent compared to 35.7 per cent in Q3 FY20.

The American retail company’s management attributed the substantial improvement in gross margin to continued strong consumer demand and better inventory management leading to decreased markdowns in the third quarter of 2021. However, inventory decreased approximately 1 per cent over Q3 FY20.

Furthermore, Dillard’s mentioned in a statement that its management is monitoring the continuing supply chain issues, particularly with regard to shipping delays and disruptions in the global transportation network.

Fibre2Fashion News Desk (JL)

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