Benzinga | Aug 12, 2021 03:25PM EDT

Dillard's Shares Rally On Strong Q2 Sales, Margin Growth

* Dillard's Inc (NYSE:DDS) reported second-quarter FY21 sales growth of 71% year-on-year, to $1.57 billion.

* Retail sales increased 72% Y/Y. Sales in ladies' apparel and shoes drove the revenue increase.

* Consolidated gross margin for the quarter expanded 1060 basis points Y/Y to 41%. The retail gross margin improved to 41.7%.

* The company held $669.5 million in cash and equivalents as of July 31, 2021.

* EPS was $8.81, with a net profit of $185.7 million.

* "The strong consumer demand we saw in the first quarter continued throughout the second quarter," said CEO William T. Dillard.

* Inventory decreased approximately 13% as of July 31, 2021, compared to August 1, 2020.

* Price Action: DDS shares traded higher by 5.51% at $192.185 on the last check Thursday.