Dillard’s saw its net earnings fall in the second quarter, reporting weakness in its core fashion categories as well as slower home goods sales.
For the second quarter ended July 30, Dillard’s posted net income of $12.1 million, or 35 cents per share, versus net income of $29.9 million, or 75 cents per share, for the year-earlier period.
Earnings per share beat an analyst average estimate of 31 cents published by MarketBeat.
Comparable store sales slipped 5%.
Net sales were $1.45 billion versus $1.51 billion in last year’s quarter. Total merchandise sales, which exclude revenue from the company’s construction business, CDI Contractors, were $1.4 billion versus $1.47 billion for quarter in the year prior. All sales categories declined, Dillard’s noted, but stronger performing categories were ladies’ apparel and men’s apparel and accessories. Home and furniture sales were significantly weaker, the company added. Sales trends were strongest in the eastern region, followed by the western and central sectors, respectively.
William Dillard, II, the company’s CEO, said, “The challenges facing apparel retailers continued through the second quarter, and our poor results reflect this. In spite of weak sales, we returned $57 million to shareholders through stock repurchase and dividends. While we continue to deal with weakness in the fashion retail industry, we believe we are in good financial shape for the long term.”
Dillard’s operates 272 retail locations and 22 clearance centers in 29 states.