Home, furniture stand out in Dillard’s lackluster Q4
Sales and profit declined during the fourth quarter at Dillard’s, with weak margin performance punching the bottom line.
LITTLE ROCK, ARK. – Sales and profit declined during the fourth quarter at Dillard’s, with weak margin performance punching the bottom line.
Total retail sales (which excludes the company’s CDI Contractors construction business) for the 13 weeks ended Feb. 1 were down 1% to $1.943 billion. Comp sales decreased 1%. Stronger performing categories were home, furniture and cosmetics. Weaker performing categories were men’s apparel and accessories and shoes.
“With sales down 1%, we worked on controlling expenses but lost some steam in gross margin,” said CEO William T. Dillard II.
Consolidated retail gross margin for the quarter was 36.1% of sales, down from 37.7% of sales in the year-ago period. Compared to the prior year fourth quarter, retail gross margin was flat in juniors’ and children’s apparel and ladies’ accessories and lingerie. Gross margin decreased slightly in shoes, cosmetics and men’s apparel and accessories. Gross margin decreased significantly in home and furniture and ladies’ apparel.
Fourth quarter net income fell 14.4% to $214.4 million, or $13.48 per share.
For the full fiscal year, retail sales decreased 2% to $4.5 billion, with comps down 3%. Net income dropped 19.7% to $593.5 million, or $36.82 per share.
Dillard’s ended the fiscal year with 272 Dillard’s stores, which includes 28 clearance centers, spanning 30 states.
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