Dillard’s profit and sales fall in Q3

Dillard's reported net income for the 13 weeks ended October 29, 2016 of 22.8 million dollars or 0.67 dollar per share, compared to net income of 45.7 million dollars or 1.19 dollars per share, for the prior year third quarter. Included in net income for the prior year third quarter is a net after-tax credit of 6 million dollars (0.16 dollar per share) related to the sale of three store locations. Net sales for the 13 weeks ended October 29 were 1.366 billion dollars against 1.435 billion dollars, last year.

Dillard's Chief Executive Officer, William T. Dillard, II, stated in the statement, "Our sales decline continued to weigh heavily on profitability during the third quarter. Shareholder return remains a priority, and we returned 55 million dollars of cash to shareholders through share repurchase and dividends."

Detailed review of the 13 months

Total merchandise sales (which excludes CDI) declined 4 percent to 1.323 billion dollars against 1.382 billion dollars for the 13-week period ended October 31, 2015. Sales in comparable stores for the period decreased 4 percent.

The company said, although all categories declined, better performing categories relative to the total trend were home and furniture, juniors' and children's apparel, ladies' apparel and men's clothing and accessories. Weaker performing categories were ladies' accessories and lingerie, cosmetics and shoes. Sales were strongest in the Western region, followed by the Central and Eastern regions, respectively.

Highlights of the 39-week results

Dillard's reported net income for the 39 weeks ended October 29, 2016 of 112.3 million dollars or 3.24 dollars per share, compared to net income of 185.3 million dollars or 4.65 dollars per share, for the prior year 39-week period. Included in net income for the prior year-to-date period is a net after-tax credit of 6 million dollars (0.15 dollar per share) related to the sale of three store locations.

Net sales were 4.321 billion dollars for the period against 4.522 billion dollars, last year. Total merchandise sales were down 4 percent to 4.175 billion dollars and sales in comparable stores for the period decreased 5 percent.

Picture:Dillard's