Department store chain Dillard’s has reported higher sales and profit for the third quarter amid positive performance across most categories.

The company’s total retail sales for the quarter ended November 1 rose 3 per cent to $1.401 billion, with comparable sales also up 3 per cent.

Consolidated gross margin expanded from 42.6 per cent in the year-ago period to 43.4 per cent. Net income rose from $124.6 million to $129.8 million.

According to GlobalData MD Neil Saunders, the good set of results “continues to demarcate the department store as one of the few in its sector that’s driving growth” and puts the company on “solid ground” in the wider retail sector. 

Saunders attributed the sales increase to broad success across most of the product categories. 

“This underlines one of the things that makes the chain successful: it encourages shoppers to buy across multiple departments which enables it to enlarge the share of wallet it captures. 

“In theory, this is something all department stores should be doing – but too many still fall short,” he said.

The chain also has relatively strong levels of loyalty, especially from its middle-aged and older consumers, thanks to constant range refreshes, an authoritative offer, and pleasant store environments, the analyst continued. More fashionable labels the chain has introduced, particularly in menswear, also helped attract younger customers, he added.

“While it is true that Dillard’s isn’t the most ambitious of retailers and would rarely be in the vanguard for initiatives such as agentic commerce, it more than makes up for this by strict adherence to the basics of retail. 

“These things show through in everything from merchandising to customer service, and they make a genuine difference. This focus will continue to serve Dillard’s well in a choppy consumer economy,” Saunders said.

For the first nine months, the company’s retail sales rose 1 per cent, while net income decreased 3 per cent to $366.5 million.