Dillard's Inc. shares climbed 3 percent Thursday after the retailer reported an 8 percent jump in profit and beat analysts' estimates in its third-quarter financial results.
Dillard's had a net income of $55.2 million for the quarter, compared with $50.9 million during the same period a year ago.
The Little Rock company's earnings got a boost from an after-tax credit of $3.8 million from the sale of a store. Dillard's declined Thursday to say which store had been sold.
The Little Rock company reported earnings per share of $1.30 for the period that ended Nov. 1, up from $1.13 in 2013. Analysts expected the company to earn $1.24 per share for the third quarter.
Shares of Dillard's rose $3.35 to close Thursday at $112.76 in heavy trading on the New York Stock Exchange. The company released its financial results before the market opened.
"The stock has been acting very well," said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.
He said the company's stock is getting a lift from Sears Holdings Corp.'s decision to spin off stores into a real estate investment trust, which has made the value of such assets more apparent.
Dillard's had $1.49 billion in total sales for the quarter, down from $1.5 billion a year ago.
The company said sales were strongest in juniors' and children's apparel. They were weakest in the home and furniture category.
Dillard's total merchandise sales, which excludes operations for CDI Contractors, its construction business, declined 1 percent during the quarter to $1.42 billion. Sales in comparable stores also dropped 1 percent.
"Although comparable sales declined 1 percent, we were pleased with a 69 basis point merchandise gross margin improvement, with our inventory control and with our strong operating cash flow," said William Dillard II, the company's chief executive officer. "We believe we are positioned very well for the holiday season, and we look forward to providing premium Dillard's service to our customers."
During the period, Dillard's repurchased $224.5 million, or 2 million shares, of its common stock for an average price of $109.89 per share under the company's repurchasing plan.
The company opened two new stores, one each in Las Vegas and Sarasota, Fla., during the quarter. Dillard's has 280 locations and 18 clearance centers in 29 states.
Business on 11/14/2014