Dillard’s Q3 Net Cut in Half
November 11, 2016,
LITTLE 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.”
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.