Arkansas-based department store Dillard’s has faced another difficult quarter following declining mall traffic, according to the company.
Dillard’s reported net income for the 52 weeks ended January 28, 2017 of $169.2 million, or $4.93 per share, compared to net income of $269.4 million, or $6.91 per share, for the prior year 52-week period.
Included in net income for the prior year 52-week period ended January 30, 2016 is a net after-tax credit of $8.1 million ($0.21 per share) related to the sale of four store locations. Total merchandise sales and comparable store sales both decreased 5% for the same period.
For the fourth quarter, Dillard’s reported net income of $56.9 million, or $1.72 per share, compared to net income of $84 million, or $2.31 per share, for the prior year fourth quarter. Included in net income for the prior year fourth quarter ended January 30, 2016 is an after-tax gain of $2.0 million ($0.06 per share) related to the sale of a store location.
Although all sales categories declined during the quarter, better performing categories relative to the total trend were ladies’ apparel and men’s apparel and accessories. Weakest performing categories were home and furniture and shoes. Sales were strongest in the Eastern region followed by the Western and Central regions, respectively.
“Our operating results reflect another quarter of mall traffic declines from continued retail industry challenges,” said William T. Dillard, II, Dillard’s chief executive officer. “In response, we are ramping up our efforts to bring more distinctive brand and service experiences to Dillard’s, both in-store and online. Our strong balance sheet provides us support in these challenging times, and during the year we returned $256 million to shareholders.”