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Dillard’s Reports Q1 Results (DDS)

Dillard’s Inc. (NYSE: DDS), a fashion apparel, cosmetics and home furnishing retailer, has reported record results for the first quarter ended May 4, 2013. Despite the strong results, shares of the retailer are fluctuating between gains and losses in trading today.

For the first quarter, Dillard’s reported net income of $117.2 million, or $2.50 per share. Excluding one-time items, the company reported net income of $112.8 million, or $2.40 per share, a record and up 27% over the same period in the previous year.

The company’s net sales for the quarter were $1.549 billion, flat compared to the same period in the previous year. Merchandise sales for the quarter totaled $1.53 billion, compared to $1.522 billion reported for the same period in the previous year.

Dillard’s comparable store sales for the quarter rose 1%. Merchandise gross margin for the quarter improved 110 basis points.

Commenting on the results, William T. Dillard, II, CEO of Dillard’s, said that the company is reporting a strong start to 2013 in spite of unseasonably cool weather. Dillard further said that positive comparable store sales and gross margin expansion combined with good expense control led to another quarter of record profitability at DDS. He added that the company is pleased with its strong cash flow, which enabled it to repurchase $114.7 million of Class A Common Stock.

Shares of Dillard’s were last trading 0.42% higher at $91.43 on volume of 179,083. Year-to-date, the stock has now gained more than 13%, underperforming the S&P 500.

 


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