Dillard's Inc. (DDS), a leading fashion apparel, cosmetics and home furnishings retailer, posted a record first-quarter 2011 earnings of $1.27 per share, outpacing the Zacks Consensus Estimate of 91 cents per share and prior-year quarter earnings of 69 cents per share.
On a reported basis, including one-time items, Dillard's reported earnings were $1.31 per share compared with the prior-year quarter's earnings of 68 cents per share.
Dillard's top line (including CDI Contractors, construction, LLC or CDI) inched up 1.1% to $1,498.8 million for the first quarter of 2011 from $1,482.7 million in the year-ago quarter. Sales excluding CDI came in at $1,456.0 million compared with $1,429.0 million in the year-ago quarter. Comparable same-store sales growth was 2.0%. Total revenue outpaced the Zacks Consensus Estimate of $1,477.0 million.
Gross margin from retail operations (which excludes CDI) expanded 130 basis points for the first quarter of fiscal 2011. The increase was primarily attributable to positive comparable store sales performance coupled with an efficient inventory management. Consolidated gross margin (which includes CDI) picked up 170 basis points in the quarter under review.
Dillard's advertising, selling, administrative and general expenses inched down $4.3 million to $389.3 million. The expenses plummeted mainly due to abridged net advertising expenditures.
Other Financial Details
The company ended the quarter with cash and cash equivalents of $147.3 million compared with $305.3 million in the year-ago period. Long-term debt was $707.6 million and shareholders' equity was $1,904.9 million versus $769.1 million and $2,247.7 million, respectively, in the prior-year period. In the first quarter of 2011, net cash provided by operating activities came in at $59.2 million.
During the quarter, the company bought back approximately $268.7 million (6.4 million shares) of Class A shares and completed $250.0 million share repurchase program authorized in 2010 and 2011.
Store Update
In the quarter, Dillard announced closure of operations at its Highland Mall in Austin, Texas along with Decatur Mall in Decatur, Alabama and Westminster Mall in Westminster, Colorado. Currently, the company operates 294 stores, 14 clearance centers across 29 states and an internet store.
Based in Little Rock, Arkansas, Dillard's Inc. is a large departmental store chain, featuring fashion apparel and home furnishings in the United States. Macy's Inc. (M), which competes with Dillard's, reported first-quarter 2011 earnings of 30 cents per share.
Dillard's shares maintain a Zacks #3 Rank, which translates into a short-term Hold rating. Our long-term recommendation on the stock remains Outperform'.
DILLARDS INC-A (DDS): Free Stock Analysis Report
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