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Dillard's Reports Comparable Store Sales Uptick, Despite Weak Home Category

Friday August 16th, 2013 - 9:28AM

Dillard's, Inc. has announced operating results for the 13 and 26 weeks ended August 3, 2013. Highlights of the company's second quarter performance, according to Dillard's were: a 25% increase in second quarter earnings per share compared to the prior year, a 1% increase in comparable store sales, and merchandise gross margin improvement of 10 basis points of sales.

Dillard's reported net income for the 13 weeks ended August 3, 2013 of $36.5 million, or $0.79 per share compared to net income of $31 million, or $0.63 per share, for the prior year second quarter.

Dillard's CEO, William T. Dillard, II, stated, "Following a strong start to the year, we made further progress in the second quarter. Positive comparable store sales and gross margin expansion combined with continued expense control enabled us to report another quarter of year over year improvement at Dillard's."

Dillard's reported net income for the 26 weeks ended August 3, 2013 of $153.7 million, or $3.30 per share compared to net income of $126 million, or $2.53 per share, for the prior year 26-week period. Included in net income for the 26-week period ended August 3, 2013 is a net after-tax credit totaling $4.4 million ($0.09 per share) comprised of the following three items: a $7.6 million after tax gain ($0.16 per share) related to the sale of an investment, a $1 million after tax credit ($0.02 per share) related to a pension adjustment an after-tax asset impairment and store closing charges of $4.2 million ($0.09 per share)

Excluding this credit, Dillard's would have reported net income of $149.3 million ($3.20 per share) for the 26-week period ended August 3, 2013, a 26% earnings per share increase over the prior year 26-week performance.

Total merchandise sales for the 13-week period ended August 3, 2013 were $1.459 billion and $1.456 billion for the 13-week period ended July 28, 2012. Total merchandise sales were unchanged on a percentage basis for the 13-week period ended August 3, 2013. Sales in comparable stores for the period increased 1%. Sales trends were notably strong in ladies' accessories and lingerie followed by juniors' and children's apparel. Sales were weakest in the home and furniture category followed by ladies' apparel. Sales trends were strongest in the Central region, followed by the Western and Eastern regions, respectively.

During the second quarter of 2013, the company closed its Randolph Mall location in Asheboro, NC. At August 3, 2013, the company operated 282 Dillard's locations and 18 clearance centers spanning 29 states and an Internet store at www.dillards.com. Total square footage at August 3, 2013 was 50.9 million.