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| Fri, Nov. 21, 2008 |  |
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Dillard's profit falls 93.7 percent in first quarter Friday, May 23, 2008 Arkansas News Bureau LITTLE ROCK - Dillard's Inc. on Thursday reported a first-profit of $2.7 million, 93.7 percent less than net income of $42.9 million in the same quarter last year. The profits included $900,000 in asset impairment and store closing charges. The comparable quarter included a $4.1 million pretax hurricane recovery gain and asset impairment and store closing charges of $700,000. Revenues for the first quarter came in at $1.7 billion, about $100 million below the comparable period. Total net sales fell 5 percent during the quarter, while sales in comparable stores declined 6 percent, the company reported. "Our first quarter performance was certainly disappointing," CEO William Dillard II said. "The weak economic conditions, particularly in Florida, made it extremely difficult to achieve profitable sales levels. The detrimental effect on our gross margin performance was dramatic as we worked to control inventory position." "We will continue to run our business conservatively to navigate the near-term economic uncertainty," he said. Dillard's cut advertising, selling, administrative and general expenses by $17.8 million during the quarter and announced six more store closures. The company also opened six new stores in the quarter. The move is expected to save about $50 million for the fiscal year, the company said. Shares of Dillard's (NYSE: DDS) closed Thursday at $16.36, down 57 cents for a 3.4 percent decline. |
