Dillard’s posts record income, share price soars
by May 13, 2011 3:56 pm 60 views
Dillard’s officials are crediting new initiatives for an increase in revenue and record first quarter profits.
The Little Rock-based mall retailer recorded net income of $76.7 million in the first quarter of 2011 compared to a $48.8 million profit one year ago. Revenue rose to $1.5 billion, slightly higher than $1.48 billion in last year’s comparable period.
Wall Street loved the news, sending the share price (NYSE: DDS) up $7.41, or 15.25%, to end the day at $56. Intraday trading pushed the 52 week high to $56.76. The 52 week low is $19.26. The share price has had a remarkable recovery since trading at below $3 per share in November 2008.
“We are extremely pleased to report a strong start to 2011 with record-setting operating results as well as the completion of our 2010 and 2011 share repurchase programs. These results speak for themselves and further affirm the success of our initiatives to create clear distinction at Dillard’s and to return value to our shareholders," CEO William Dillard said in the earnings statement.
Other quarterly highlights:
• Same-store sales rose 2%.
• Dillard’s completed the repurchase of approximately 6.4 million shares ($268.7 million ) of Class A Common Stock.
• The company will close 3 stores in the second quarter in Austin, Texas, Decature, Ala., and Westminster, Colo.
At April 30, 2011, the company operated 294 Dillard’s locations and 14 clearance centers in 29 states.