For the quarter ended August 3, Dillard’s posted an 17.7% increase in net income to $36.5 million, or 79 cents a share, compared with a profit of $31 million, or 63 cents a share, a year ago. That beat analysts’ expectations for earnings of 74 cents a share.
Net revenue edged down 0.5% to $1.48 billion (including the company’s construction business, CDI Contractors LLC). Comparable store sales were up 1%.
Gross margin widened to 34% from 33.6% due to low input costs. Overhead expenses edged down 0.2% as lower advertising expenses and services purchases were offset by increases in selling payroll expense and insurance.
Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “Following a strong start to the year, we made further progress in the second quarter,” William T. Dillard II, chief executive, said. “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.”
Dillard’s reported that sales trends were “notably strong in women’s accessories and lingerie followed by juniors’ and children’s apparel.” Weakest performing categories were Shome and furniture followed by women’s apparel. By region, sales at Dillard’s stores in the Central United States were strongest, followed by the Western and Eastern regions.