Dillard's Inc announces record Q1 Earnings Per Share
22 May '06
3 min read
Gross Margin
Dillard's achieved gross margin improvement of 70 basis points of sales for the 13 weeks ended April 29, 2006 compared to the 13 weeks ended April 30, 2005.
The Company attributes its improved gross margin performance to positive customer response to its merchandise mix as evidenced by a comparable store sales increase of 2 percent and lower levels of markdowns partially offset by lower markups.
Total inventory as of April 29, 2006 declined 1 percent compared to April 30, 2005. Inventory in comparable stores declined 2 percent for the same period.
Advertising, Selling, Administrative and General Expenses
Advertising, selling, administrative and general ("S G & A") declined 70 basis points of sales ($2.7 million) for the 13 weeks ended April 29, 2006.
S G & A expenses were $494.6 million and $497.3 million for the 13 weeks ended April 29, 2006 and April 30, 2005, respectively.
Financial Accounting Standards Board No. 123R was effective for the Company beginning in fiscal year 2006 and required the recording of the fair value of stock based compensation. Total stock compensation expense for the 13 weeks ended April 29, 2006 was $532,000.
Interest and Debt Expense
Interest and debt expense declined $2.6 million to $23.6 million for the 13 weeks ended April 29, 2006 compared to the 13 weeks ended April 30, 2005 as a result of lower debt levels. As of April 29, 2006, letters of credit totaling $71.4 million were outstanding under the Company's $1.2 billion revolving credit facility.
Share Repurchase Program
During the 13 weeks ended April 29, 2006, Dillard's repurchased $3.3 million of Class A Common Stock under its $200 million share repurchase program approved by the board of directors in May of 2005.
As of April 29, 2006, authorization of $111.9 million remained under the share repurchase program. As of April 29, 2006, 79.2 million shares of Dillard's, Inc. Class A and Class B Common Stock were outstanding.
marketing@alchempro.com
