Home Lags as Dillard's Logs Quarterly Turnaround

Net Income Sharply Increased in the Quarter

By Staff -- Home Textiles Today, 11/27/2006 12:00:00 AM

Little Rock, Ark. —

Home furnishings sales lagged the general trend at Dillard's, which reported third-quarter net income of $13.6 million — a major turnaround from the net loss of $2.7 million for the same period one year ago.

Net sales were virtually unchanged, holding at $1.7 billion, as comparable-store sales declined 2%. Dillard's achieved gross margin improvement of 140 basis points, which the company attributed to fewer markdowns and to better inventory control — comp inventory declined 3%.

"Sales of juniors' and children's apparel and decorative home merchandise were significantly below trend for the period," the 327-unit department store operator said.