Dillard’s Q2 retail sales rise by 1% as ladies’ apparel sales fall

Dillard’s, the notable upscale American retailer, saw its second-quarter retail sales fall by 1 per cent to US $ 1.55 billion. The numbers excluded construction sales.

While men’s apparels did strong business in the quarter, women’s apparel sales saw a slump.

The retailer’s operating expenses were US $399.5 million or 25.7 per cent of sales.Now that’s a good jump from US $364.2 million posted in the year-ago period – all thanks to higher payroll expenses.

Notably, the overall net income fell by 12 per cent to US $ 163.4 million.

The fall in women’s apparel has come as a surprise given Dillard’s leverage to on-trend categories like dressy, said UBS analysts’ Mauricio Serna, adding “This reinforces our view [that] sales will weaken in [the second half of the year].”

Reportedly, rising inventory levels are poised to force markdowns and challenge Dillard’s further at a time of slower discretionary spending.

Founded in 1938, Dillard’s, Inc. is an upscale American department store chain with approximately 282 stores in 29 states.