Dillard's logs drop in 1st-quarter gain

Dillard's Inc. on Thursday posted a profit of $111.7 million for its first quarter of 2014, a 4.7 percent drop from the same period a year ago.

The Little Rock retailer had earnings per share of $2.56 for the period that ended May 3, beating analysts estimates of $2.37. Dillard's had earnings per share of $2.50 during the same quarter in 2013.

"We reported record earnings per share of $2.56 compared to $2.50," said William Dillard II, the company's chief executive officer, in a prepared statement. "Our 2% comparable store sales increase marks our 15th consecutive quarter of positive sales. Additionally, we executed $65.9 million of share buyback as a result of our strong cash flow."

Dillard's said it bought back almost 1 million shares of common stock at an average price of $89.34 under its repurchasing program. The remaining authorization under the plan is $224.5 million.

Dillard's shares fell $1.88, or 1.9 percent, to close Thursday at $96.60 on the New York Stock Exchange. The company released its financial results after markets closed. The shares have traded between $75.60 and $100.63 in the past 52 weeks.

"All things considered, I think they had a good quarter," said Bob Williams, senior vice president and managing director of Delta Trust Investments Inc. in Little Rock.

Despite the weather and economy, Dillard's had an increase in net merchandise sales and same-store sales, he said, adding that "the combination of both" has hurt other retailers.

Dillard's total merchandise sales for the first quarter was about $1.54 billion, a 1 percent increase from the year before. The department store also saw a 2 percent increase in comparable store sales during the period.

Sales during the quarter were strongest in men's apparel and accessories, and juniors' and children's apparel, followed by ladies' accessories and lingerie. Sales were weakest in the home and furniture departments.

First-quarter net sales -- which include operations from CDI Contractors, Dillard's construction business -- were $1.551 billion, compared to $1.549 billion during the same period a year ago.

Dillard's operates 278 locations and 18 clearance centers in 29 states.

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Dillards EARN

Business on 05/16/2014

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