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Dillard’s reports decline in Q3 net income

By Prachi Singh

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Dillard's reported net income for the 13 weeks ended October 31, 2015 of 45.7 million dollars, or 1.19 dollars per share, compared to net income of 55.2 million dollars, or 1.30 dollars per share, for the prior year third quarter. Net sales were 1.435 billion dollars and 1.460 billion dollars for the 13 weeks ended November 1, 2014.

”We are disappointed with our third quarter sales performance and in the resulting decline in profit. Share buyback remained a high priority, and we repurchased 175 million dollars of stock under our share repurchase program," stated Dillard's Chief Executive Officer, William T. Dillard, II.

Third quarter financial highlights

Total merchandise sales (which excludes CDI) for the 13-week period ended October 31, 2015 were 1.382 billion dollars and 1.422 billion dollars for the 13-week period ended November 1, 2014. Total merchandise sales decreased 3 percent for the period and sales in comparable stores decreased 4 percent.

Better performing categories were shoes, juniors' and children's apparel, cosmetics, and ladies' apparel. Weaker performing categories were men's apparel and accessories and ladies' accessories and lingerie with notable weakness in home and furniture. Sales were strongest in the eastern region, followed by the western and central regions, respectively.

Net income declines for 39-weeks

Dillard's reported net income for the 39 weeks ended October 31, 2015 of 185.3 million dollars, or 4.65 dollars per share, compared to net income of 201.4 million dollars, or 4.67 dollars per share, for the prior year 39-week period. Net sales were 4.522 billion dollars and 4.486 billion dollars for the 39 weeks ended November 1, 2014.

Total merchandise sales for the period were 4.368 billion dollars and 4.423 billion dollars for the 39-week period ended November 1, 2014. Total merchandise sales decreased 1 percent and sales in comparable stores for the period also decreased 1 percent.

In October, Dillard's opened two stores at Liberty Center in Cincinnati, Ohio and Fremaux Town Center in Slidell, Louisiana respectively. At October 31, 2015, the company operated 274 Dillard's locations and 23 clearance centers spanning 29 states and an Internet store at Dillards.com.

Dillard's