Sales, profit drop at Dillard's in Q4

Dillard’s says sales were particularly weak in the Southern states as the department store retailer reported a 35.6% drop in fourth quarter profit.



For the period ended Jan. 30, Dillard's had revenue of $2.07 billion for the fourth quarter, down from $2.1 billion during the same period a year ago. Net income was $130.5 million, or $3.17 per share, for the prior year fourth quarter. Same-store sales declined 2%. Net sales for the fourth quarter were $2.074 billion.



"The fourth quarter was difficult. As sales came in less than planned, we worked hard to control our inventory during an unusually competitive environment," said Dillard’s CEO William T. Dillard II. "Sales were particularly weak on the Southern border and in the energy producing regions. Higher markdowns affected gross margin, but we did the right thing as we move on to 2016.”



During fiscal 2015, Dillard’s opened three new stores at Fashion Place in Murray, Utah (200,000 square feet replacing 190,000 square feet), Fremaux Town Center in Slidell, La. (126,000 square feet) and Liberty Center in Cincinnati, Ohio (155,000 sq. ft.). The company closed two clearance stores comprising 245,000 sq. ft. Dillard’s has announced the upcoming closure of its Aiken Mall location in Aiken, S.C. The store is expected to close during first quarter 2016.



As of Jan. 30, the company operated 273 Dillard’s locations and 24 clearance centers spanning 29 states and an Internet store at Dillards.com. Total square footage was 50.1 million.