Dillard’s Q3 Net Cut in Half

Home, furniture turn in strong sales
November 11, 2016David Gill

dillardscorpoffice3x2LITTLE ROCK, Ark.-Weak sales put a large hurt on Dillard’s bottom line in its fiscal third quarter with net income falling by 100.4 percent to $22.8 million.

Net sales totaled $1.4 billion, down 4.8 percent, including a 4 percent same-store sales decline. Total merchandise sales were also down by 4 percent (Dillard’s total sales figure includes results from its construction business, CDI Contractors).

“Our sales decline continued to weigh heavily on profitability during the third quarter,” said William Dillard II, Dillard’s CEO. “As we work through this tough time, we are focused on improving customer experience through attracting and maintaining premium brands while providing exceptional service.”

Home and furniture were among the department store retailer’s best-performing categories, along with juniors’ and children’s apparel, ladies’ apparel and men’s clothing and accessories.

Gross margin also affected the bottom by dropping 73 basis points to 35.6 percent. Selling, general and administrative expenses were trimmed by 0.5 percent in dollars but rose 129 basis points as a percentage of sales, to 30.1 percent.

David GillDavid Gill | Contributing Editor

David Gill is a contributing editor to HFN.

Videos

  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover

    HFN's DIGITAL EDITION

    August 2017


    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    ALSO IN THIS ISSUE:

    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.