Dillard’s Inc.’s earnings increased 23 percent in the first quarter, spurred by strong sales in women’s accessories and lingerie, the Little Rock retailer said Wednesday.
Dillard’s had record net income of $117.2 million in the quarter that ended May 4, up from earnings of $95 million in the same period last year. The firm had earnings per share of $2.50, beating the expectations of $2.11 a share of three analysts surveyed by Thomson Reuters.
“We are reporting a strong start to 2013 in spite of unseasonably cool weather,” William Dillard II, the company’s chief executive officer, said in a prepared statement. “Positive comparative store sales and gross margin expansion combined with good expense control led to another quarter of record profitability at Dillard’s.”
Dillard’s had total sales of $1.6 billion in the quarter, essentially the same as in the first quarter last year. Sales trends were strongest in women’s accessories and lingerie, and junior’s and children’s apparel, the company said. Its weakest categories were home and furniture.
Sales were higher in the central U.S., followed by the eastern and western regions,Dillard’s said.
The earnings report was issued after markets closed Wednesday. Dillard’s closed at $89.09 Wednesday, up $1.38, in trading on the New York Stock Exchange.
Dillard’s good quarter was “what should be expected in light of the improving economy,” said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.
“Clearly the economy is doing remarkably well in light of the [federal] sequestration [budget cuts],” Williams said.
Dillard’s benefited in the quarter from the sale of its investment in Acumen Brands of Fayetteville, an Internet business. Dillard’s had an after-tax gain of $7.6 million from the sale.
The company bought 1.4 million shares of its stock in the quarter at a cost of $114.7 million.
Dillard’s has 283 stores and 18 clearance centers, with almost 51 million total square feet, in 29 states.
It closed its Logan, Utah, store in the first quarter. The company has announced it also will close its Asheboro, N.C., store this spring.
Business, Pages 27 on 05/16/2013