Heavy markdowns hurt Dillard’s in Q4

Dillard’s CEO William T. Dillard II voiced disappointment in the retailer’s gross margin performance despite what he called a profitable fourth quarter. Although comparable sales grew 2%, the retailer said lower-than-anticipated sales necessitated heavy markdowns.

The company reported a net income of $119.1 million for the quarter and fiscal 2014, a 26% decline from $161.4 million for the same period a year earlier. Net sales in the fourth quarter declined 3% to $2.03 billion from $2.1 billion. During the fiscal year, net income dropped about 4% to $323.7 million from $336 million, and net sales slightly declined to $6.53 billion from $6.59 billion. Same-store sales rose 1%.

Looking ahead, Dillard’s plans to open two new stores in October 2014: a 200,000-sq.-ft. location in The Shops at Summerlin in Las Vegas and a 180,000-sq.-ft. location in The Mall at University Town Center in Sarasota, Fla.
 

 

Heavy markdowns hurt Dillard’s in Q4

Dillard’s CEO William T. Dillard II voiced disappointment in the retailer’s gross margin performance despite what he called a profitable fourth quarter. Although comparable sales grew 2%, the retailer said lower-than-anticipated sales necessitated heavy markdowns.

The company reported a net income of $119.1 million for the quarter and fiscal 2014, a 26% decline from $161.4 million for the same period a year earlier. Net sales in the fourth quarter declined 3% to $2.03 billion from $2.1 billion. During the fiscal year, net income dropped about 4% to $323.7 million from $336 million, and net sales slightly declined to $6.53 billion from $6.59 billion. Same-store sales rose 1%.

Looking ahead, Dillard’s plans to open two new stores in October 2014: a 200,000-sq.-ft. location in The Shops at Summerlin in Las Vegas and a 180,000-sq.-ft. location in The Mall at University Town Center in Sarasota, Fla.
 

 

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