Dillard's, Inc announced operating results for the 13 weeks ended May 5, 2007.
Income: Net income for the 13 weeks ended May 5, 2007 was $42.9 million ($0.53 per diluted share) compared to net income of $61.3 million ($0.77 per diluted share) for the 13 weeks ended April 29, 2006. Included in net income for the 13 weeks ended May 5, 2007 is a pretax $4.1 million hurricane recovery gain ($2.6 million after tax or $0.03 per diluted share).
Revenues: Net sales for the 13 weeks ended May 5, 2007 were $1.763 billion compared to sales for the 13 weeks ended April 29, 2006 of $1.835 billion. Total net sales declined 4% during the 13-week period. Sales in comparable stores declined 5%.
During the 13 weeks ended May 5, 2007, net sales were strongest in the Western region, where performance exceeded the Company's total trend for the period. Net sales were slightly above trend in the Eastern region and slightly below trend in the Central region.
Net sales of shoes significantly outperformed the average company performance trend during the 13 weeks ended May 5, 2007. Sales of juniors' and children's clothing declined significantly more than trend during the period.
Gross Margin/Cost of Sales: Cost of sales as a percentage of sales decreased to 63.9% during the 13 weeks ended May 5, 2007 compared to 64.3% for the 13 weeks ended April 29, 2006 resulting in gross margin improvement of 40 basis points of sales.
The improvement was primarily driven by a $4.1 million hurricane recovery gain ($2.6 million after tax or $0.03 per diluted share) related to recovery of merchandise losses incurred during the fall 2005 hurricane season and decreased markdowns in comparison to the first quarter of 2006.
marketing@alchempro.com
