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Dillard’s 1Q Net Income Drops 2 Percent, Same-Stores Sales Down 1 Percent

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Dillard’s Inc. of Little Rock on Thursday reported net income of $109.6 million, down about 2 percent from the same time last year as same-store sales slid 1 percent.

The publicly traded department store chain (NYSE: DDS) reported earnings per share of $2.66 for the 13 weeks ended May 2, up from $2.56 per share in the same quarter last year.

Net sales were $1.574 billion, up about 1.5 percent 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 percent from the same time last year.

“We are disappointed with our first quarter performance,” Dillard’s CEO William T. Dillard II said in a news release. “Our 1 percent sales decline hampered our ability to leverage operating expenses and to drive net income growth. Although inventory is higher than we would like, we believe the levels are manageable.”

The retailer said sales trends were strongest in its juniors’ and children’s apparel category, followed by shoes and ladies’ apparel. Sales were weak in its home and furniture category.

Sales trends were strongest in Dillard’s Eastern region, followed by the Central and Western regions. Dillard’s also noted that sales in Texas performed slightly below company average during the first quarter.

Revolving Credit

Dillard’s also announced that it has issued a new $1 billion senior unsecured revolving credit facility.

The facility, which will mature on May 13, 2020, is available to the company for general corporate purposes including, working capital financing, the issuance of letters of credit, capital expenditures and the repayment of existing indebtedness and share repurchases.

Dillard’s is scheduled to hold annual shareholders meeting at 9 a.m. Saturday at the company’s headquarters in Little Rock.

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