Department store chain Dillard's Inc. (DDS), Wednesday reported an increase in profit for the first quarter, due mainly to comparable sales growth, better cost management and improved gross margins, notwithstanding flat revenues. Earnings for the quarter came in ahead of Wall Street expectations, but revenues fell short of estimates.
The Little Rock, Arkansas-based retailer's first-quarter sales remained flat with last year at $1.55 billion. Analysts polled by Thomson Reuters expected revenues of $1.61 billion for the quarter.
Comparable store sales, or sales from stores open for at least a year, increased 1 percent.
Sales trends were strongest in ladies' accessories and lingerie and juniors' and children's apparel, while home and furniture category were weak, the company noted. Dillard's operates 283 locations and 18 clearance centers across the US, and also an online store.
Consolidated gross margin for the three-month period improved 130 basis points to 39.5 percent. Selling, general and administrative costs, as a percentage of sales, dropped to 25.2 percent of sales from 25.4 percent last year.
Commenting on the results, Chief Executive William Dillard said, "We are reporting a strong start to 2013 in spite of unseasonably cool weather. Positive comparable stores sales and gross margin expansion combined with good expense control led to another quarter of record profitability at Dillard's."
Dillard's reported a first-quarter profit of $117.2 million or $2.50 per share, up from $95.0 million or $1.89 per share last year.
Excluding after-tax credit of $0.09 per share, earnings for the first quarter was $2.40 per share, while analysts expected earnings of $2.09 per share. Analysts' estimates typically exclude special items.
DDS closed Wednesday's trading at $89.09, up $1.38 or 1.57%, on the NYSE. The stock further gained at $1.76 or 1.98% in after-hours trade.
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