Apartment store chain Dillard’s has posted a slight sales decline for the first quarter as the company improved inventory control to navigate the challenging consumer environment. 

Total retail sales for the 13 weeks ended May 4 edged down 1 per cent to $1.493 billion, while comparable store sales decreased 2 per cent.

The company noted a continued challenging sales environment during the period, with cosmetics being the strongest performing merchandise category and men’s apparel and accessories the weakest.

Net income was $180 million, compared to $201.5 million in the prior-year period.

Dillard’s CEO William T Dillard said the company focused on profitable sales by offering interesting products combined with inventory control. 

“As a result, our retail gross margin was 46.2 per cent and inventory was down 2 per cent. For the first time in our history, we reported cash and short-term investments exceeding $1 billion.”

As of the end of the quarter, the company operated 274 stores, including 29 clearance centers, across 30 states.