Dillard's focus on restructuring after poor 1Q

LITTLE ROCK, Ark. Dillard’s reported first quarter net income of $2.7 million, 4 cents per diluted share, compared to net income of $42.9 million, or 53 cents per diluted share, for the same period last year.

The company reported a 5% decline in net sales from $1.76 billion last year to $1.7 billion this year. First quarter comps declined 6%.

Dillard’s ceo, William Dillard, II, stated, “Our first quarter performance was certainly disappointing. The weak economic conditions, particularly in Florida, made it extremely difficult to achieve profitable sales levels. The detrimental effect on our gross margin performance was dramatic as we worked to control inventory position. We will continue to run our business conservatively to navigate the near-term economic uncertainty.” 

Specifically, Dillard’s has announced plans to close under-performing stores, reduce capital expenditures, reduce expenses and continue to change its merchandise mix to strengthen its appeal to aspirational, upscale and contemporary shoppers.