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 | Senior Editor
dgill@hfnmag.com

David Gill covers home textiles, small electrics housewares, personal-care products, cleaning products, mattresses, consumer electronics and major appliances. He also reports on retailers and writes about the business and financial side of both vendors and retailers. He has more than 30 years of experience in business journalism, and has worked for other publications and websites that cover consumer products from both the manufacturer and retailer sides. His outside interests include sports (he is a big fan of the New York teams and of British soccer), cooking, movies and theater. He occasionally enjoys a good cigar as well.

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