Dillard’s sales slip to start fiscal 2017

By

Obi Anyanwu

Published
May 11, 2017

Dillard’s opened its fiscal year on a decline, continuing a trend from its previous quarter and the end of its fiscal 2016.
 
Net sales fell to $1.418 billion in the first quarter from $1.503 billion in the prior year, and total merchandise sales fell to $1.386 billion from $1.449 billion.

Comparable store sales fell 4%, with cosmetics, home and furniture, and ladies’ accessories and lingerie posting weak performances, but ladies’ apparel outperformed other merchandise categories followed by the junior’s and children’s apparel category.
 
In addition, net income slipped to $66.3 million, or $2.12 per share, from $77.4 million, or $2.17 per share in the previous year.

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Chief Executive Officer William T. Dillard, II stated, “While our sales decline weighed heavily on our operating results, we remained active in returning cash to shareholders through $93 million of share repurchase and dividends. We still ended the quarter with $302 million of cash largely due to better cash management.”
 
Dillard’s did not mention declining mall traffic for its sales decline, unlike in the fourth quarter. The retailer said in February with its fourth quarter and full year results that it is focused on bringing unique brand service experiences to its in-store and online businesses.
 
Gross margin from retail operations improved 65 basis points in the first quarter and consolidated gross margin improved 108 basis points of sales. SG&A expenses were $398.5 million (28.1% of sales) compared to $398.4 million (26.5% of sales) in the prior year.