Department store chain Dillard's Inc. had net income of $7.4 million in its third quarter that ended Nov. 3, the Little Rock-based company said Thursday.
That was an almost 50 percent decline from the $14.5 million Dillard's made in the third quarter last year.
Dillard's earned 27 cents a share in the quarter, down from 50 cents in the same period last year. The earnings per share badly missed the average projection of 56 cents a share from five analysts surveyed by Thomson Reuters.
Dillard's stock took a hit Thursday, falling $10.94, or almost 15 percent, to close at $62.85 in trading on the New York stock exchange. Prior to Thursday, the shares had risen 23 percent since the start of the year and 37 percent in the last 12 months.
Revenue for the third quarter was $1.5 billion, up from $1.4 billion in the same period a year ago.
Dillard's was encouraged by its 3 percent comparable store sales performance in the third quarter, said William Dillard II, the retailer's chief executive officer.
"[But] this was a disappointing quarter as markdowns weighed heavily on gross margin, particularly in the first month," Dillard said. "However, operating performance improved as the quarter progressed and sales turned positive. We also invested $54 million in share repurchases during the quarter."
Dillard's bought back about 700,000 shares of its stock during the quarter.
In relation to the total company sales trend, above-trend performances were noted in ladies' accessories and lingerie, followed by juniors' and children's apparel.
Sales were slightly above trend in men's apparel and accessories and home and furniture. Sales were consistent with trend in shoes, slightly below trend in ladies apparel and below trend in cosmetics. Sales were strongest in the western region, followed by the eastern and central regions.
Dillard's also announced on Thursday a cash dividend of 10 cents a share payable on Feb. 4 to shareholders of record as of Dec. 31.
For the first nine months of the year, Dillard's earned $85.1 million, up from $63.8 million earned in the same period last year.
Net sales for the first nine months of the year were $4.3 billion, compared with $4.2 billion for the first nine months of last year.
As of Nov. 3, Dillard's operated 265 stores and 27 clearance centers in 29 states, and an Internet store at dillards.com.
On Nov. 14, Dillard's opened its expansion at The Oaks Mall in Gainesville, Fla., adding 90,000 square feet.
Dillard's has announced its upcoming closures of stores at the West Town Center in Cincinnati in the fourth quarter and Arrowhead Mall in Muskogee, Okla., next spring. The stores measure 115,000 square feet and 70,000 square feet, respectively.
Business on 11/16/2018