American retailer Dillard’s has seen its profits surge in the second quarter as sales of women’s apparels increased during the period.
While total retail sales jumped by 72 per cent to clock US $ 1.5 billion, it was women’s apparels and shoes that ended up being the best performing categories for the retailer. Its retail sales rose by 12 per cent, when compared to 2019.
Dillard’s net income touched US $ 185.7 million – that was a good jump after a net loss of US $ 8.6 million seen during the same period last year.
The comparable store sales too rose by 14 per cent, when compared to the same period of 2019.
In a statement released to media, the retailer said that margins in Q2 expanded owing to stronger consumer demand and better inventory management, which led to decreased markdowns.
As of 31 July 2021, the inventory was down by around 13 per cent year-over-year.
Notably, retail gross margin for the retailer touched 41.7 per cent of second quarter sales, compared to 31.1 per cent in the previous year.
Founded in 1938, Dillard’s generated US $ 6.34 billion in 2020 and is known mainly for clothes, shoes, bedding, and furniture, amongst others.