Dillard’s (NYSE:DDS) shares rose around 6% on Thursday after the company beat first-quarter earnings expectations.
For the quarter, the department store chain posted net income of $163.8 million, or $10.39 per share—well above the $8.92 analyst consensus. Revenue matched expectations at $1.53 billion.
Comparable store sales slipped 1% year-over-year, while total retail sales fell 2% to $1.47 billion. Growth in juniors’, children’s, and men’s apparel helped offset weaker results in home goods, footwear, and women’s apparel.
Gross margin narrowed to 45.5% from 46.2% a year earlier, reflecting a more promotional environment or softer pricing power. However, operating expenses improved slightly, falling by $5 million to $421.7 million, driven mainly by lower payroll costs.
While the earnings beat highlights cost discipline, modest top-line pressure and margin contraction underscore the cautious consumer backdrop facing department store retailers.