Comps were up at Dillard’s in the third quarter, as apparel, home and furniture categories helped the department store retailer boost sales.
In the third quarter ended November 3, Dillard’s recorded net income of $7.4 million, or 27 cents per share, versus net income of $14.5 million, or 50 cents per share, for the year-earlier period.
Results for the quarter included a $2.9 million, or 11 cents per share, tax benefit. Included in the year-prior quarter was a $3.1 million, or 11 cents per share, after-tax gain on disposal of assets, the company reported, and a $500,000, or two cents per share, after-tax loss on extinguishment of debt.
Comparable store sales for the period increased 3% with above-trend performances from ladies’ accessories and lingerie followed by juniors’ and children’s apparel. Sales came in slightly above trend across the men’s apparel and accessories, and home and furniture categories. By region, sales were strongest in the West followed by the East and Central.
Total merchandise sales were $1.34 billion versus $1.31 billion in the year-prior period, the company noted. Net sales were $1.42 billion versus $1.36 billion in the year-previous period.
Dillard’s CEO William Dillard, II, stated, “While we are encouraged by our 3% comparable sales performance, this was a disappointing quarter as markdowns weighed heavily on gross margin, particularly in the first month. However, operating performance improved as the quarter progressed and sales turned positive. We also invested $54 million in share repurchases during the quarter.”