Dillard’s continued to see challenges in its third quarter, reporting a comps slide and a decrease in earnings.
In the third quarter ended October 29, Dillard’s recorded net income of $22.8 million, 67 cents per share, versus $45.7 million, or $1.19 per share, in the prior-year period. Dillard’s missed a 76 cents per share analyst average estimate published by MarketBeat. Net income for the third quarter of the past fiscal year included a net after-tax credit of $6 million, or 16 cents per share, related to the sale of three store locations.
Comparable stores sales decreased 4%, while net sales were $1.37 billion versus $1.44 billion in the year-earlier quarter.
Total merchandise sales, which exclude revenues from the company’s construction division, were $1.32 billion versus $1.38 billion for the year-earlier quarter. All merchandise categories declined, but home and furniture, juniors’ and children’s apparel, ladies’ apparel and men’s clothing and accessories were relatively strong. Sales were strongest in the western region, followed by the central and eastern regions, respectively, the company stated.
William Dillard, II, Dillard’s CEO, said, “Our sales decline continued to weigh heavily on profitability during the third quarter. As we work through this tough time, we are focused on improving customer experience through attracting and maintaining premium brands while providing exceptional service. Shareholder return remains a priority, and we returned $55 million of cash to shareholders through share repurchase and dividends.”
The company operates 271 locations and 23 clearance centers in the U.S.