Dillard’s Sees Profits Dip Slightly

Dillard’s reported slightly lower sales and profits, although same-store sales were steady.

The Little Rock-based retailer reported second quarter net income of $34.5 million on sales and revenue of $1.513 billion. One year ago, Dillard’s reported profits of $36.5 million on revenue of $1.517 billion.

“Although our 1% comparable store sales increase led to a profitable quarter, we are somewhat disappointed in the bottom line performance. We are pleased with our inventory management during the quarter and with our ending inventory position,” said Dillard’s CEO William T. Dillard, II.

In a Bloomberg report earlier this week, Dillard’s vice-president Bill Dillard, III, described some of the strategy the mall and online retailer has been deploying.

Dillard said that the 76-year old department store chain “aims for the customer at the top of the middle-income spectrum.”

He also said part of the company’s positioning strategy is “to pay well above the minimum wage, including for entry-level positions, and to pay commissions on sales which can be very lucrative for top performers.”

Dillard also discussed how “disruptive” online sales have been to the retail industry and how Dillard’s is adapting. You can access the interview at this link.

Shares of Dillard’s closed trading on Thursday at $115.60. The company’s stock has been on a tear for more than a year. It has traded between a low of $75.60 and a high of $125.17 during the past year.