Dillard’s Feels Impact Of Hurricanes In Third Quarter
Dillard’s comps and sales dipped in the third quarter, as the department store retailer felt the impact of both Hurricanes Harvey and Irma.
Comparable stores decreased 1% in the quarter year over year. Net sales were $1.36 billion versus $1.37 billion, in the previous third quarter.
Total merchandise sales, which excludes the contributions from Dillard’s construction business, CDI Contractors, were $1.31 billion versus $1.32 billion in the year-earlier quarter. As for merchandise categories, ladies’ apparel, ladies’ accessories and lingerie, and juniors’ and children’s apparel performed best. Men’s apparel and accessories came in slightly above average, consistent with trends in home and furniture, Dillard’s said. In terms of geographies, sales were strongest in the western and eastern regions followed by the central region.
In the third quarter, Dillard’s posted net income of $14.5 million, or 50 cents per share, versus $22.8 million, or 67 cents per share, for the prior-year period. Included in net income is a pretax gain on disposal of assets of $3.1 million after tax, or 11 cents per share, and a loss on extinguishment of debt of $500,000 after tax, or two cents per share. An analyst average estimate from Zacks Investment Research came in at 23 cents per share.
William Dillard, CEO, Dillard’s said, “Hurricanes Harvey and Irma affected our two largest states, Texas and Florida, leading to a sales decline of 1%. Excluding these events, we believe sales would have been flat for the quarter. We were encouraged by positive sales trends in the past few weeks of the quarter, and we hope it continues.”