The departmental store chain, Dillard Inc. (DDS: 21.12 +0.01 +0.05%), witnessed an upbeat of 2% in same store sales as well as net sales for the five-week ended July 3, 2010.Sales were $506 million for the month as compared with $497 million in the prior comparable month. Dillard saw an above-average sale in the Eastern region, while revenues from the Western and Central regions were below trend. The sales performance in the cosmetics category was significantly low.
The Late Memorial Day weekend gave a strong momentum to sales in June, which eventually tailed off by the middle of the month. We believe the consumer spending still reflects the scars of the recession. The late Memorial Day only shifted the weekend holiday-related sales to June 2010 boosting the sales to some extent. The consumers have still not got back to their free-spending mood.
Year-to-date sales were $2,365 million, up 1% while comparable stores increased 2% for the 22-week period.
For the thirteen-week quarter ended May 1, 2010, the company had reported a net income of $49 million or 68 cents per share compared with net income of $8 million or 10 cents per share in the prior comparable quarter. The comparable store inventory declined 12% while comparable store sales saw a 2% increase in the quarter.
We believe Dillard will emphasize on shorter cycle times throughout the fiscal year to trim down markdown risks and instead maintain a continuous flow of fresh merchandise selections to thrill the customers.
During the first quarter of fiscal 2010, Dillard opened two stores at Texas and announced the close of its Helena, Montana store during the second quarter
The retail sales numbers for the month of June were mixed to slightly positive. While companies like Nordstrom Inc. (JWN: 34.02 +0.33 +0.98%) witnessed very strong comparative sales of 14%, a few other apparel retailers’ comparable store sales were as follows: Kohl’s Corp. (KSS: 47.805 -0.165 -0.34%) went up 6%,Saks Incorporated (SKS: 7.72 0.00 0.00%) up 3%, Macy’s Inc. (M: 18.30 -0.14 -0.76%) up 6% and J. C. Penney Company Inc. (JCP: 22.78 -0.46 -1.98%) up 5%
After the sales results were released, the share price of the company rose by 12 cents to $21.11 on July 8, 2010, as compared with the closing share prices of $33.69, $47.97, $7.72, $18.44 and $23.24 on the very day for Nordstrom, Kohl , Saks, Macy’s and J. C. Penney, respectively.
Dillard operated 299 locations and 12 clearance centers spanning 29 states. The stores offer a broad selection of merchandise, including products sourced and marketed under Dillard’s exclusive brand names.
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