Dillard’s quarterly income up 80%

Effective store management, tighter store inventory control, and an eye on administrative costs led Dillard’s, Inc. to a more profitable third quarter.

The Little Rock-based mall retailer reported third quarter net income of $14.4 million, up from last year’s quarterly profit of $8 million.

Net sales for Dillard’s was actually a little lower  — $1.34 billion for the quarter compared to $1.36 billion in the third quarter of 2009.

“Our solid performance in the third quarter reflects our continuing and firm resolve to effectively manage and improve inventory, to control expenses and to seek the best uses for our strong cash flow," CEO Bill Dillard said in a statement. "We are proud to report these improved results today, and we believe we are well positioned to serve our customers this holiday season with a bold merchandise assortment and premium Dillard’s service.”

Dillard’s cut about 50 information technology jobs in the past quarter as it streamlines its IT department.  The company also announced it would close two stores in Florida in the fourth quarter of 2010.

During the first three fiscal quarters of 2010, the company has posted net income of $70 million, compared to an $11 million loss in the 2009 comparable period. Total revenue for the three quarters is $4.276 billion, down 1.7% from the $4.351 billion in the 2009 period.

At Oct. 30, 2010, the company operated 296 Dillard’s locations and 14 clearance centers spanning 29 states. Total square footage was 53.7 million.

Dillard’s shares (NYSE: DDS) were up more than $3.40 in morning trading, or more than 12%. Trading volume was up to 1.633 million shares traded by 11 a.m., almost double the normal daily volume. During the past 52 weeks, the share price has ranged from a $32.52 high to a $12.72 low.