Dillard’s reports difficult Q4, FY15 earnings decline

Dillard's reported net income for the 52 weeks ended January 30, 2016 of 269.4 million dollars, or 6.91 dollars per share, compared to net income of 331.9 million dollars, or 7.79 dollars per share, last year. Net sales were 6.596 billion dollars against 6.621 billion dollars for the 52 weeks ended January 31, 2015.

Commenting on the company’s performance, Dillard's Chief Executive Officer, William T. Dillard, II, stated, "The fourth quarter was difficult. As sales came in less than planned, we worked hard to control our inventory during an unusually competitive environment. Sales were particularly weak on the Southern border and in the energy producing regions. "

FY15 and fourth quarter witness decline in sales

Total merchandise sales for the year were 6.389 billion dollars compared to 6.490 billion dollars for the 52-week period, last year. Total merchandise sales and sales in comparable stores decreased 2 percent for the 52-week period.

For the fourth quarter ended January 30, 2016, Dillard’s reported net income of 84 million dollars, or 2.31 dollars per share, compared to net income of 130.5 million dollars, or 3.17 dollars per share, for the prior year fourth quarter. Net sales were 2.074 billion dollars against 2.136 billion dollars for the 13 weeks ended January 31, 2015.

Total merchandise sales (which exclude CDI) for the 13-week period were 2.021 billion dollars, representing a decrease of 2 percent. Sales in comparable stores for the period also decreased 2 percent.

Sales down in junior apparel and shoe categories

In relation to the total company sales performance, sales were notably strong in home and furniture followed by ladies' accessories and lingerie. Weaker performing categories were juniors' and children's apparel and shoes. Sales were strongest in the Western region followed by the Eastern and Central regions, respectively. The Company noted weakness particularly on the Southern border and in energy producing regions.

During fiscal 2015, Dillard's opened three new stores at Fashion Place in Murray, Utah, Fremaux Town Center in Slidell, Louisiana and Liberty Center in Cincinnati, Ohio. The Company closed two clearance stores and has announced the upcoming closure of its Aiken Mall location in Aiken, South Carolina. At January 30, 2016, the company operated 273 Dillard's locations and 24 clearance centers spanning 29 states.