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Count Dillard’s as the latest retailer feeling the effects of macroeconomic uncertainty.
On Thursday, the Little Rock, Ark.-based department store reported net income in the first quarter fell 9 percent to $163.8 million, or $10.39 a share, from $180 million, or $11.09 a share, in the same period last year.
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Total sales were down 2 percent to $1.45 billion from $1.49 billion last year with comparable-store sales slipping 1 percent. Operating expenses dipped marginally to $421.7 million, or 27.6 percent of sales, from $426.7 million in the prior year, while inventory at the end of the quarter was up 6 percent.
By category, the company said juniors’ and children’s apparel, along with men’s clothing and accessories were the strongest performers in the quarter while home, furniture, shoes and women’s apparel were weak.
Retail gross margins for the 13 weeks ended May 3 were 45.5 percent of sales compared to 46.2 percent of sales for the same quarter last year. The company said gross margins decreased moderated in women’s apparel and were flat in women’s accessories and lingerie while other categories decreased slightly.
During the period, Dillard’s repurchased $98 million worth of Class A common stock, or approximately 276,000 shares, at an average price of $355.65.
“We turned in a relatively good first quarter in light of the prevailing economic uncertainty,” said chief executive officer William T. Dillard 2nd. “We kept expenses under control and reported a healthy gross margin. After repurchasing $98 million in stock, we had $1.2 billion in cash and short-term investments remaining.”
The retailer does not host a call with analysts and did not provide guidance for the remainder of the year for sales and earnings.
Dillard’s operates 272 department stores and 28 clearance centers in 30 states.
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