Dillard's hit by department store doldrums

Dillard’s joined Macy's and Nordstrom Monday in struggling against weaker than expected traffic and sales in the third quarter.

The company reported that for the third quarter ended Oct. 31, same store sales declined 4%. Total sales decreased 3%. Net income declined to $45.7 million, or $1.19 per share, compared to net income of $55.2 million, or $1.30 per share, for the prior year third quarter.

"We are disappointed with our third quarter sales performance and in the resulting decline in profit," saidDillard’s CEO William T. Dillard II. "Share buyback remained a high priority, and we repurchased $175 million of stock under our share repurchase program."

Dillard's said the company's better performing categories were shoes, juniors' and children's apparel, cosmetics, and ladies' apparel. Weaker performing categories were men's apparel and accessories and ladies' accessories and lingerie with notable weakness in home and furniture. Sales were strongest in the Eastern region, followed by the Western and Central regions, respectively, the company said.

The disappointing news from Dillard's comes just days after Macy's, Nordstrom and other retailers reported weak sales heading into the busy holiday shopping season.

In October, Dillard's opened a 155,000-square foot location at Liberty Center in Cincinnati, Ohio, as well as a 126,000-square foot location at Fremaux Town Center in Slidell, La.

As of Oct. 31, the company operated 274 Dillard’s locations and 23 clearance centers spanning 29 states and an Internet store at www.dillards.com.