Dillard’s posts decline in Q3 sales and earnings

Dillard’s, Inc. net income decreased to 155.3 million dollars or 9.49 dollars per share for the third quarter.

Net sales for the quarter declined to 1.476 billion dollars, while retail sales decreased 6 percent to 1.409 billion dollars. Sales in comparable stores also decreased 6 percent.

The company attributed a challenging sales environment during the quarter with particular weakness beginning in September for the sales decline. Dillard’s said in a statement that cosmetics was the strongest performing category followed by home and furniture. Juniors’ and children’s apparel was the weakest category.

Commenting on the company’s third quarter results, Dillard’s chief executive officer William T. Dillard, II stated: “The sales environment remained challenging in the third quarter with particular weakness beginning in September. Our focus on producing profitable sales with inventory control paid off - with a retail gross margin of 45.3 percent and inventory down 1 percent year over year.”

For the 39 weeks total retail sales decreased 5 percent and comparable store sales decreased 4 percent.

Net income declined to 488.3 million dollars, while earnings per share dropped to 29.38 dollars and retail gross margin decreased to 43.7 percent.

Dillard’s closed its MacArthur Center location in Norfolk, Virginia during the third quarter. The company operates 273 Dillard’s stores, including 27 clearance centres, spanning 29 states and an Internet store.