Dillard's Q2 profits decline by 59%

By

Dani Greene

Published
Aug 12, 2016

Dillard’s experienced steep declines in net income in the second quarter 2016. Net income dropped from $29.9 million in Q2 2015 to $12.1 million this year.

The reduction in net income was largely caused by substantial increases in trade accounts payable, expenses and other liabilities from $2.2 million in Q2 2015 to $77.1 million this quarter.

Net sales and total merchandise sales were relatively flat compared to Q2 2015 at $1.45 billion and $1.4 billion respectively.
 
Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “The challenges facing apparel retailers continued through the second quarter, and our poor results reflect this. In spite of weak sales, we returned $57 million to shareholders through stock repurchase and dividends. While we continue to deal with weakness in the fashion retail industry, we believe we are in good financial shape for the long term.”

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During the second quarter of this year, Dillard's also purchased 900,000 shares of Class A common stock for $54.1 million under its $500 million share repurchase program.
 
Established in 1938, Dillard's, Inc. operates 272 Dillard’s locations and 22 clearance centers spanning 29 states and an online store.


Dillard's currently operates approximately 300 stores in 29 states.