Dillard's doubles its 4Q profits
Staff -- Home Textiles Today, 3/26/2001
LITTLE ROCK, AR -Turning the corner after a long string of earnings reversals, Dillard's Inc., the Southern department store chain, more than doubled its fourth-quarter profits, driving earnings higher by 153.8 percent, to $6g million from 22 million a year ago.
In a big lift to the bottom line, the retailer managed to work down asset impairment and store closing charges to $51 million from $70 million a year ago, a savings of $19 million, as it struggles with the aftermath of a costly and troubled buyout of Mercantile Stores.
Sales in the 14-week Christmas quarter inched up by 2.6 percent, to $2.7 billion from $2.6 billion for the 13-week quarter a year ago, lifted by the extra week of sales. But on a comparable 13-week basis, sales actually slipped by 2.0 percent on both a total and same-store basis.
The only category to post a sales gain during the holiday period was women's and junior's clothing, up 1 percent. All other categories fell back, with home fashions showing the biggest decline, down 6 percent for the quarter and 4 percent for the year.
Average gross margin declined by 20 basis points in the fourth quarter, to 31.8 percent from 32.0 percent a year ago. Still it was a big improvement over a 140 basis point decline for all of last year, to 32.2 percent from 33.6 percent.
Qtr. 2/3 (x000) | 2001 | 2000 | %CHG |
|---|---|---|---|
Sales | $2,662,000 | $2,595,000 | 2.6 |
Oper. income (EBIT) | 214,000 | 219,000 | -2.3 |
Net income | 66,000a | 22,000a | 153.8 |
Per share (diluted) | 0.78 | 0.26 | 200.0 |
Average gross margin | 31.8% | 32.0% | - |
SG & A expenses | 23.3% | 23.2% | - |
12 months | 2001 | 2000 | %CHG |
Sales | 8,567,000 | 8,677,000 | -1.3 |
Oper. income (EBIT) | 492,000 | 666,000 | -26.1 |
Net income | (6,000)b | 164,000b | - |
Per share | (0.06) | 1.55 | - |
Average gross margin | 32.2% | 33.6% | - |
SG & A expenses | 25.9% | 25.4% | - |
( ): Denotes loss
a-Earnings in the fourth-quarter include an asset impairment and store closing charge of $51 million, compared with $70 million the year before; and a $7 million after-tax gain on the early retirement of debt.
b-12-month results include a $51 million asset impairment and store closing charge vs. $70 million a year ago; a $130 million one-time charge stemming from a change in accounting; and a $27 million after-tax gain on the early retirement of debt.
