Connect with us

Headlines

Dillard’s Profits Jump 518% (Not a Typo)

Retailer’s surge prompts the question – are department stores back?

mm

Published

on

Credit: Jonesdr77, Wikimedia Commons, photo unaltered
Credit: Jonesdr77, Wikimedia Commons, photo unaltered

Dillard’s (Little Rock, AR) reported glistening numbers for its third quarter, including an eye-popping 518 percent jump in profits from the year prior.

In its earnings announcement on Thursday, the retailer reported $197.3 million in net income compared to $31.9 million for the third quarter of 2020. Total retail sales increased by 48 percent compared to the same period a year ago.

While the profit surge was aided by a $32.4 million tax benefit from the CARES Act, the company said that, compared to the third quarter of 2019, sales of juniors’ and children’s apparel and men’s apparel and accessories “significantly outperformed the other categories.”

Department stores, Barron’s writes, have seen a resurgence in 2021, as indicated by the stock growth of Macy’s (176%), Kohl’s (53%) and Nordstrom (15%). Holiday department store sales are expected to grow by nearly 15 percent compared to the previous year, according to a Mastercard forecast.

“In a declining business, you know, department stores are back to some degree,” Steve Sadove, senior advisor for Mastercard and former Saks CEO, told the outlet. “They’ve used the opportunity in the pandemic to in some ways try to reinvent themselves.”

During the third quarter, Dillard’s opened its new location at Mesa Mall in Grand Junction, CO (100,000 square feet). Also during the quarter, it closed a leased clearance center in Harlingen, TX (100,000 square feet).

Advertisement

The retailer operates 250 Dillard’s locations and 30 clearance centers spanning 29 states.

Over the years, INSTORE has won 80 international journalism awards for its publication and website. Contact INSTORE's editors at [email protected].

Advertisement

SPONSORED VIDEO

It’s Going to Set Us Up Very Nicely for Retirement

You’ve worked hard all your life. And if you’re like most jewelers contemplating retirement, you’re hoping that your going-out-of-business sale will add to your nest egg — with minimal complications. That’s exactly what Doug and Jacki Friedrich, fourth-generation owners of Friedrich Jewelers Inc., of Vernon, Conn., experienced when they selected Wilkerson to run their sale. “Jewelers who are contemplating a sale should go with Wilkerson because of their experience,” says Doug. And with financial goals “exceeding expectations,” the couple can now focus on enjoying the next chapter of their lives. “It’s going to set us up very nicely for retirement,” says Jacki. “The money’s coming in and we have no complaints. It’s been wonderful.”

Promoted Headlines

Most Popular