Dillard's Posts Record Profit in First Quarter
LITTLE ROCK, Ark.-First-quarter net income for Dillard's shot up 24 percent to a record $95 million.
Increases in sales and expense controls combined to boost Dillard's bottom line in the quarter, which ended on April 28. Net sales rose 5.5 percent to $1.5 billion, including a 5 percent increase in same-store sales.
William T. Dillard II, CEO, noted that this was the seventh consecutive quarter in which the department-store retailer's same-store sales increased. Dillard's enjoyed strong sales in most of its merchandise categories, excluding home, furniture, juniors and children's apparel, all of which were below trend.
Selling, general and administrative expenses increased 1 percent in dollars but fell 110 basis points as a percentage of sales, to 25.4 percent. Cost savings in advertising and utilities helped SG&A, partially offset by rises in payroll, services purchased and insurance. Gross margin was down 40 basis points to 38.4 percent.