August 15, 2014
Despite an increase of 1% in comparable store sales, Dillard’s CEO William T. Dillard II expressed disappointment in the company’s bottom line performance.
The company’s net sales for the 13 weeks ended August 2 were $1.475 billion, compared to net sales of $1.480 billion for the 13 weeks ended August 3, 2013. Net sales include the operations of the company’s construction business, CDI Contractors.
Total merchandise sales (which exclude CDI) for the quarter were $1.461 billion, compared to net sales of $1.459 billion for the comparable period last year. Total merchandise sales remained unchanged on a percentage basis for the quarter.
Sales trends were strongest in juniors’ and children’s apparel followed by men’s apparel and accessories. Sales were weakest in the home and furniture category. Sales trends were strongest in the Central region, followed by the Eastern and Western regions, respectively. “We are pleased with our inventory management during the quarter and with our ending inventory position,” Dillard said.
Gross margin from retail operations (which excludes CDI) declined 33 basis points of sales for the quarter compared to the proir year second quarter. The decline resulted primarily from increased markdowns. Consolidated gross margin for the quarter declined 20 basis points of sales comapred to the prior year second quarter. Inventory decreased 2% at August 2 compared to August 3, 2013.
As of August 2, the company operated 278 Dillard’s locations and 18 clearance centers spanning 29 states and an e-commerce site.
Source: Retailing Today
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