Dillard's posts drop in same store sales

Dillard’s joined Macy’s, Kohl’s and JCPenney in reporting lackluster results as a result of weak sales in the first quarter.

For the first quarter ended May 2, Dillard’s reported of $109.6 million, or $2.66 a share, compared with $111.7 million, or $2.56 a share, in the prior year quarter. Same-store sales declined 1%.

"We are disappointed with our first quarter performance. Our 1% sales decline hampered our ability to leverage operating expenses and to drive net income growth," said Chief Executive William Dillard. "Although inventory is higher than we would like, we believe the levels are manageable."

Net sales at Dillard's were $1.574 billion, up about 1.5% from the same quarter last year. Net sales includes the operations of the company's construction business, CDI Contractors LLC. Total merchandise sales, which excludes CDI, were $1.518 billion, down about 1% from the same time last year.

The Texas-based retailer said sales trends were strongest in the juniors' and children's apparel category followed by shoes and ladies' apparel. Sales were notably weak in the home and furniture category. Sales trends were also strongest in the Eastern region, Dillard’s said, followed by the Central and Western regions, respectively.

Regarding the impact of the Texas economy, the company noted that sales in Texas performed slightly below the company average during the first quarter.

Dillard’s also announced that it has issued a new $1 billion senior unsecured credit facility, enhancing the company's liquidity. The new unsecured facility replaces the company's $1 billion secured credit facility and underscores Dillard's continued improvement in financial strength.

As of May 2, the company operated 274 Dillard’s locations and 23 clearance centers spanning 29 states and an Internet store at www.dillards.com.