For the 13 weeks or second fiscal quarter ended August 2, 2014, net income at apparel and accessories retailer – Dillard’s slipped $2 million from the same period a year ago, but was able to hike its EPS by $0.01 per share.
Dillard’s posted net income of $34.5 million, or $0.80 per share in second fiscal quarter of 2014, compared to net income of $36.5 million, or $0.79 per share, for the prior year second quarter.
In the period under preview, comparable stores sales increased 1% year-on-year.
Net sales for second quarter of 2014 were marginally down to $1.475 billion, which includes operations of its construction business - CDI Contractors, LLC, against $1.478 billion in comparable quarter of previous fiscal year.
Total merchandise sales, excluding CDI for the 13-week period ended August 2, 2014 remained unchanged on a percentage basis at $1.461 billion from last fiscal year’s quarter. Sales in comparable stores for the period rose 1%.
Dillard’s said, sales trends were strongest in juniors’ and children’s apparel followed by men's apparel and accessories and region wise they were strongest in the Central region, followed by Eastern and Western regions, respectively.
Gross margin from retail operations, excluding CDI declined 33 basis points of sales for the second quarter of 2014 versus prior year second quarter. Dillard’s attributed the decline to increased markdowns.
Consolidated gross margin for the 13 weeks ended August 2, 2014 declined 20 basis points of sales compared to the same quarter last year, while inventory fell 2% from last year’s second quarter.
Selling, general and administrative expenses (SG&A) were $400.5 million or 27.2% of sales in second fiscal quarter of 2014. The retailer said an increase in payroll expense was partially offset by decrease in insurance and advertising expense.
As of August 2, 2014, Dillard’s operated 278 stores locations and 18 clearance centers spanning 29 US states spread over 50.5 million sq. feet.
Dillard’s CEO William Dillard said, “Although our 1% comparable store sales increase led to a profitable quarter, we are somewhat disappointed in the bottom line performance. We are pleased with our inventory management during the quarter and with our ending inventory position."
