Dillard’s Q1 earnings decline to 2.12 dollars

Dillard's net income for the 13 weeks ended April 29, 2017 was 66.3 million dollars or 2.12 dollars per share, compared to net income of 77.4 million dollars or 2.17 dollars per share, for the prior year first quarter. Net sales were 1.418 billion dollars against 1.503 billion dollars for the same period last year. Total merchandise sales decreased 4 percent for the quarter.

Commenting on the first quarter trading, Dillard's Chief Executive Officer, William T. Dillard, II, stated in a statement, "While our sales decline weighed heavily on our operating results, we remained active in returning cash to shareholders through 93 million dollars of share repurchase and dividends. We still ended the quarter with 302 million dollars of cash largely due to better cash management."

Comparable store sales decreased 4 percent

Sales in comparable stores for the period also decreased 4 percent. The company said, sales of ladies' apparel outperformed other merchandise categories during the first quarter followed by the juniors' and children's apparel category. Weaker performances were noted in cosmetics, home and furniture, and ladies' accessories and lingerie. Sales were strongest in the western region followed by the eastern and central regions, respectively.

Gross margin from retail operations (which excludes CDI) improved 65 basis points of sales, while consolidated gross margin improved 108 basis points. During the quarter, Dillard's opened its new replacement store at The Mall at Greenhills in Nashville and purchased a former Macy's location at Layton Hills Mall in Layton, Utah and a store at Temple Mall in Temple, Texas that will replace a leased location at that centre.

The company expects to open both stores in the fall of 2017 and operated 268 Dillard's locations and 25 clearance centres spanning 29 states at the end of the quarter.

Picture:Dillard's website