Third quarter net sales at Dillard’s was down year-over-year as comparable sales for the three months ended November 2 was flat.
Net sales were $1.388 billion, down from net sales of $1.419 billion in the comparable quarter the previous year. Net income was $5.5 million, or $0.22 per share, compared to net income of $7.4 million, or $0.27 per share, for the prior-year third quarter. Net sales include the operations of the company’s construction business, CDI Contractors.
Total merchandise sales (which excludes CDI) for the quarter was $1.334 billion, down slightly from sales of $1.342 billion in the third quarter of 2018.
“While we were not satisfied with the third quarter, it was a substantial improvement over the second quarter,” said William Dillard, Dillard’s CEO. “We were pleased with our retail gross margin improvement (13 basis points) following a second quarter decline of 319 basis points. We managed inventory to a 4% decrease from flat at the end of the second quarter. Our flat comparable sales performance improved from the 2% second quarter sales decline.”
Dillard’s plans to open an expansion at Killeen Mall in Killeen, TX, by the end of the fiscal year, replacing a 70,000 square foot leased facility with a 75,000 square foot owned facility at this dual anchor location totaling 110,000 square feet.
During the first quarter of 2020, the company will open an 85,000 square foot expansion at Columbia Mall in Columbia, MO (dual anchor location totaling 185,000 square feet). Also in early 2020, Dillard’s will replace a 100,000 square foot leased facility at Richland Fashion Mall in Waco, Texas with a 125,000 square foot owned facility (dual anchor location totaling 190,000 square feet).