Dillard’s reports 2 percent rise in FY18 comparable sales
Prachi Singh | Tuesday, February 26 2019
Dillard’s, Inc. reported net income for the 52 weeks ended February 2, 2019 of 170.3 million dollars or 6.23 dollars per share compared to 221.3 million dollars or 7.51 dollars per share, for the 53 weeks ended February 3, 2018. Net sales were 6.356 billion dollars for the period compared to 6.262 billion dollars for the 53 weeks last year. Total merchandise sales (which exclude CDI) were 6.121 billion dollars for the 52-weeks compared to 6.108 billion dollars last year. Based upon comparable 52-week periods, total merchandise sales increased 2 percent and sales in comparable stores increased 2 percent.
Commenting on the results, Dillard’s Chief Executive Officer, William T. Dillard, II, said in a statement: "Our 2 percent comparable store sales increase for 2018 is comprised of four quarters of positive sales. For the year, we held retail gross margin and operating expenses flat as a percent of sales. Additionally, during 2018, we returned 139 million dollars to shareholders through share repurchases and dividends."
Highlights of Dillard’s Q4 and full year results
Dillard’s reported net income for the 13 weeks ended February 2, 2019 of 85.1 million dollars or 3.22 dollars per share compared to 157.6 million dollars or 5.55 dollars per share, for the 14 weeks ended February 3, 2018. Net sales for the quarter were 2.011 billion dollars compared to 2.061 billion dollars for the 14 weeks ended February 3, 2018.
Total merchandise sales were 1.959 billion dollars for the fourth quarter compared to 2.024 billion dollars for the 14-week period ended February 3, 2018. Based upon comparable 13-week periods, total merchandise sales increased 1 percent and sales in comparable stores increased 2 percent.
Consolidated gross margin for the 52 weeks ended February 2, 2019 declined 45 basis points of sales to 32.5 percent compared to 32.9 percent for the 53 weeks ended February 3, 2018. Gross margin from retail operations declined 69 basis points of sales to 30.3 percent for the 13 weeks ended February 2, 2019 compared to 31 percent for the 14 weeks ended February 3, 2018. Consolidated gross margin for the quarter declined 90 basis points of sales to 29.6 percent compared to the prior year fourth quarter of 30.5 percent.
During the fourth quarter, Dillard's closed its West Town Center clearance location in Cincinnati, Ohio and has also announced the upcoming closure of its Southern Park Mall location in Boardman, Ohio, which is expected to close during the first quarter of 2019. At February 2, 2019, the company operated 265 Dillard’s locations and 26 clearance centres spanning 29 states and an Internet store at Dillards.com.