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Dillard's Profit Surges on Strong Q1 Sales and Fatter Margins

Margin gains tied to fresher assortments helped the retailer top modest Wall Street forecasts.

Overview

  • Dillard's posted first-quarter net income of $250.6 million, or $16.04 a share, up from $163.8 million, or $10.39, a year earlier.
  • Revenue reached $1.57 billion as comparable-store sales rose 3 percent and retail gross margin widened to 45.8 percent.
  • A $104.1 million pre-tax gain from a payment card interchange-fee settlement lifted results, and profit rose about 4 percent without it.
  • Every merchandise category grew, led by home and furniture, women's accessories and lingerie, and shoes, with cosmetics up slightly.
  • The company beat Zacks’ small analyst sample, and CEO William T. Dillard II said fresh assortments are the priority to keep customers buying.