Dillard’s, Inc. reported net income for the 13 weeks ended August 2, 2014 of $34.5 million, or 80 cents per share, compared to net income of $36.5 million, or 79 cents per share, for the prior year second quarter. Comparable stores sales increased 1% for the quarter.
Dillard’s CEO William Dillard stated, “Although our 1% comparable store sales increase led to a profitable quarter, we are somewhat disappointed in the bottom line performance. We are pleased with our inventory management during the quarter and with our ending inventory position.”
Dillard’s reported net income for the first half of 2014 of $146.1 million, or $3.36 per share, compared to net income of $153.7 million, or $3.30 per share, for the prior year 26-week period.
Total merchandise sales for the 13-week second quarter were $1.461 billion and $1.459 billion. Total merchandise sales remained unchanged on a percentage basis. Sales in comparable stores for the period increased 1%.
Sales were weakest in the home and furniture category. Sales trends were strongest in the Central region, followed by the Eastern and Western regions, respectively.
Gross margin from retail operations declined 33 basis points of sales for the quarter compared with the prior year second quarter. The decline resulted primarily from increased markdowns. Consolidated gross margin for the period declined 20 basis points of sales compared to the prior year second quarter. Inventory decreased 2% as compared with 2013’s second quarter.
The company operated 278 Dillard’s locations and 18 clearance centers spanning 29 states and an Internet store at www.dillards.com.