Dillard’s Sees Profits Rise Despite Sales Slip
by August 14, 2013 5:34 pm 88 views
Lower revenue didn’t impair Dillard’s bottom line as the Little Rock-based retailer reported second quarter net income of $36.5 million, up from $31 million one year ago.
Sales slipped from $1.488 billion in 2012’s second quarter to $1.480 billion in 2013’s comparable period. Overall quarterly income stood at $1.517 billion, down from last year’s $1.525 billion.
Dillard’s said that sales trends were “notably strong” in ladies’ accessories and lingerie followed by juniors’ and children’s apparel. Sales were weakest in the home and furniture category followed by ladies’ apparel, the company said.
Gross margin from operations, a key financial metric in the retail industry, improved 10 basis points compared to a year ago.
“Following a strong start to the year, we made further progress in the second quarter. Positive comparable store sales and gross margin expansion combined with continued expense control enabled us to report another quarter of year over year improvement at Dillard’s,” said CEO Bill Dillard.
Dillard’s shares (NYSE: DDS) closed trading on Wednesday (Aug. 14) at $78.96. The company’s stock has traded between $71.69 and $94.86 during the past year.