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Dillard’s posts decline in Q2 profit and net sales

By Prachi Singh

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Business

Dillard's reported net income for the 13 weeks ended July 30, 2016 of 12.1 million dollars, or 0.35 dollar per share, compared to net income of 29.9 million dollars, or 0.75 dollar per share, for the prior year second quarter. Net sales for the period ended July 30, 2016 were 1.452 billion dollars.

Commenting on the results, Dillard's CEO, William T. Dillard, II, stated, "The challenges facing apparel retailers continued through the second quarter, and our poor results reflect this. In spite of weak sales, we returned 57 million dollars to shareholders through stock repurchase and dividends.”

Second quarter and first half highlights

Total merchandise sales of 1.403 billion dollars decreased 4 percent and sales in comparable stores for the period decreased 5 percent. Although all sales categories declined, stronger performing categories were ladies' apparel and men's apparel and accessories. Sales of home and furniture were significantly weaker. Sales trends were strongest in the Eastern region, followed by the Western and Central regions, respectively.

Dillard's reported net income for the 26 weeks ended July 30, 2016 of 89.5 million dollars or 2.55 dollars per share, compared to net income of 139.5 million dollars or 3.43 dollars per share, for the prior year 26-week period. Net sales for the period ended July 30, 2016 were 2.956 billion dollars against 3.087 billion dollars, for the same period last year. Total merchandise sales of 2.853 billion dollars decreased 4 percent and sales in comparable stores for the period decreased 5 percent.

The company has closed its clearance centres at South Towne Center in Sandy, Utah and Plaza Central, formerly Six Flags Mall, in Arlington, Texas. The Company operates 272 Dillard's locations and 22 clearance centres spanning 29 states.

Picture:Dillard's

Dillard's