Little Rock-based Dillard's reported a 29 percent drop in net income in the first quarter compared to the same period last year.
The retailer said Thursday that net income for the quarter ending April 30 totaled $77.4 million, or $2.17 per share, down from $109.6 million, or $2.66 per share, in 2015's first quarter.
Net sales were $1.503 billion, down 4.5 percent from $1.574 billion in 2015. Total merchandise sales and sales in comparable stores were both down 5 percent.
"Our disappointing sales pressured our gross margin and net income performance, although inventory was relatively flat at quarter end," Dillard's Chief Executive Officer William T. Dillard II said in a statement. "While we controlled expenses, sales leverage was difficult to achieve."
Dillard's said sales were strongest in shoes and weakest in home and furniture and ladies' accessories and lingerie.
Read Friday's Arkansas Democrat-Gazette for full details.