Dillard’s reports decline in Q3 merchandise sales and net income

Dillard’s reported net income for the 13 weeks ended October 28, 2017 of 14.5 million dollars or 0.50 dollar per share, compared to net income of 22.8 million dollars or 0.67 dollar per share, for the prior year third quarter. Net sales for the period were 1.355 billion dollars compared to 1.366 billion dollars in the same quarter last year.

Commenting on the third quarter trading, Dillard’s Chief Executive Officer, William T. Dillard, II, stated in a statement: “Hurricanes Harvey and Irma affected our two largest states, Texas and Florida, leading to a sales decline of 1 percent. Excluding these events, we believe sales would have been flat for the quarter. We were encouraged by positive sales trends in the past few weeks of the quarter, and we hope it continues.”

Highlights of Dillar’s Q3 results

Total merchandise sales excluding CDI were 1.313 billion dollars against 1.323 billion dollars for the 13-week period ended October 29, 2016, representing a decrease of 1 percent. Sales in comparable stores also decreased 1 percent.

Sales of ladies’ apparel, Dillard’s said, were above the average company sales trend, with above trend performances also noted in ladies’ accessories and lingerie and juniors’ and children’s apparel. Sales were slightly above trend in men’s apparel and accessories and consistent with trend in home and furniture. Sales were slightly below trend in shoes and significantly below trend in cosmetics. Sales were strongest in the Western and Eastern regions followed by the Central region.

Included in net income for the period, Dillard’s said, is a pretax gain on disposal of assets of 4.8 million dollars (3.1 million dollars after tax or 0.11 dollar per share) and 0.8 million dollars loss on extinguishment of debt. The gain on disposal of assets includes the sale of a store property and insurance recovery on a previously damaged Chesterfield, Missouri location partially offset by a loss on the sale of equipment.

39-Week Results

Dillard’s reported net income for the 39 weeks ended October 28, 2017 of 63.8 million dollars or 2.14 dollars per share, compared to net income of 112.3 million dollars or 3.24 dollars per share, for the prior year 39-week period.

Net sales for the period were 4.200 billion dollars against 4.321 billion dollars, in the same period of 2016. Total merchandise sales were 4.083 billion dollars against 4.175 billion dollars for the 39-week period ended October 29, 2016. Total merchandise and comparable store sales decreased 2 percent.

At October 28, 2017, the company operated 268 Dillard’s locations and 25 clearance centers spanning 29 states and an Internet store at Dillards.com.

Picture:Dillard's website