LITTLE ROCK, Ark.-Lagging sales and margins hurt Dillard’s financial performance for both the fourth quarter and the fiscal year.
The retailer reported a 26.2 percent drop in fourth-quarter net income, to $119.1 million, bringing its bottom-line total for the year (which ended on Feb. 1) to $323.7 million, down 3.7 percent. Net sales in the quarter were down 3.4 percent to $2 billion, and for the year net sales finished at $6.5 billion, a decrease of 0.9 percent.
Gross margin in the quarter lost 180 basis points to 32.6 percent. Selling, general and administrative expenses dropped 7.5 percent in dollars and 90 basis points as a percentage of sales, to 21.6 percent.
William Dillard II, Dillard’s CEO, said, “Although it was a profitable fourth quarter, we are disappointed in our gross-margin performance, as lower than anticipated sales necessitated heavier markdowns. We are pleased with our expense control as well as with our strong cash flow for the year.”