First quarter sales at Dillard’s were down slightly as strength in some apparel departments could not offset weakness in other product categories including home.
For the quarter ended April 29, net sales were $1.418 billion, down from sales of $1.503 billion in the first quarter of 2016. Net income was $66.3 million, or $2.12 per share, compared to net income of $77.4 million, or $2.17 per share, for the prior-year first quarter. Sales in comparable stores for the period also decreased 4%.
According to the company, sales of ladies’ apparel notably outperformed other merchandise categories during the first quarter followed by the juniors and children’s apparel category. Weaker performances were noted in cosmetics, home and furniture, and ladies’ accessories and lingerie. Sales were strongest in the western region followed by the eastern and central regions, respectively.
“While our sales decline weighed heavily on our operating results, we remained active in returning cash to shareholders through $93 million of share repurchase and dividends,” said William T. Dillard, CEO, Dillard’s. “We still ended the quarter with $302 million of cash largely due to better cash management.”
During the quarter, Dillard’s opened its new replacement store at The Mall at Greenhills in Nashville, TN, at 180,000 square feet. The company purchased a former Macy’s location at Layton Hills Mall in Layton, Utah which is 160,000 square feet, and a store at Temple Mall in Temple, Texas, that will replace a leased location at that center. Dillard’s expects to open both stores in the fall of 2017.
Dillard’s operates 268 locations and 25 clearance centers spanning 29 states.
