Dillard’s Q1 net income up, sales decline marginally

Dillard's for the 13 weeks ended May 2, 2015 reported net income of 109.6 million dollars, or 2.66 dollars per share, compared to net income of 111.7 million dollars, or 2.56 dollars per share, for the prior year first quarter. Net sales were 1.574 billion dollars and 1.551 billion dollars for the 13 weeks ended May 3, 2014.

”We are disappointed with our first quarter performance. Our 1 percent sales decline hampered our ability to leverage operating expenses and to drive net income growth. Although inventory is higher than we would like, we believe the levels are manageable," said Dillard's Chief Executive Officer, William T. Dillard, II.

Total merchandise sales were 1.518 billion dollars and 1.539 billion dollars for the 13-week period ended May 3, 2014. Total merchandise sales decreased 1 percent and sales for comparable stores for the period decreased 1 percent. Sales trends were strongest in the juniors' and children's apparel category followed by shoes and ladies' apparel. Sales were notably weak in the home and furniture category. Sales trends were strongest in the eastern region, followed by the central and western regions, respectively.

Gross margin from retail operations improved 52 basis points of sales for the 13 weeks ended May 2, 2015 compared to the prior year first quarter. Consolidated gross margin declined 50 basis points of sales compared to the prior year first quarter. At May 2, 2015, the company operated 274 Dillard's locations and 23 clearance centers spanning 29 states and an internet store at www.dillards.com. During fiscal 2015, Dillard's plans to open three new stores.