Dillard’s net sales and income dipped in the fourth quarter and fiscal year, as the department store retailer said its weak top line weighed on its performance.
The retailer reported net income for the fourth quarter ended February 1, 2020 of $67.7 million, or $2.75 per share, compared to net income of $85.1 million, or $3.22 per share, for the prior year fourth quarter.
Net sales for the fourth quarter were $1.923 billion. Net sales includes the operations of the company’s construction business, CDI Contractors. Sales in comparable stores for the period decreased 3%. Sales were strongest in the Eastern and Western regions and weakest in the Central region. By category, sales were strongest in ladies’ apparel and cosmetics with weaker performances in ladies’ accessories and lingerie and home and furniture.
For the fiscal year, Dillard’s reported net income of $111.1 million, or $4.38 per share, compared to net income of $170.3 million, or $6.23 per share, for the prior year. Net sales for the fiscal year were $6.204 billion. Sales in comparable stores for the period decreased 1%.
William Dillard, II, Dillard’s CEO, said, “A weak top line weighed heavily on the bottom line in the fourth quarter. However, we achieved a consecutive 4% decline in inventory while maintaining a flat gross margin rate. As U.S. department store retailing continues to right size, our conservative financial approach supports our long-term view. We continue to focus on improving our results and on shareholder return.”