Lower sales in Q1 lead to profit decline at Dillard's

Dillard's net income for the 13 weeks ended April 30, 2016 was 77.4 million dollars, or 2.17 dollars per share, compared to net income of 109.6 million dollars, or 2.66 dollars per share, for the prior year first quarter. Net sales were 1.503 billion dollars against 1.574 billion dollars for the 13 weeks ended May 2, 2015.

First quarter financial review

Total merchandise sales were 1.449 billion dollars compared to 1.518 billion dollars for the same quarter ended May 2, 2015, decrease of 5 percent. Sales in comparable stores for the period also decreased 5 percent. Sales trends were strongest in shoes. Weaker performing areas were home and furniture and ladies' accessories and lingerie. Sales trends were strongest in the Eastern region, followed by the Central and Western regions, respectively.

Gross margin from retail operations declined 145 basis points of sales for the 13 weeks ended April 30, 2016 compared to the prior year first quarter. The decline in gross margin was attributed primarily to higher markdowns during the period. Consolidated gross margin declined 140 basis points of sales.

Dillard's recently closed its Aiken Mall location in Aiken, South Carolina. The company now operates 272 Dillard's locations and 24 clearance centers spanning 29 states and an internet store at Dillards.com.

picture:dillards.com