The department store retailer posts net income of$108.6 million for its quarter ending Jan. 31,compared to $51.2 million for the same period lastyear. But the numbers include a $83.9 million gain and$31.2 million in charges – meaning that net income was$55.9 million.
The retailer recorded a pretax gain million due to thesale of its credit card subsidiary, Dillard NationalBank, to GE Consumer Finance. The pre-tax impairmentcharges consisted of asset impairment and storeclosing charges and call premiums related to earlydebt reduction.
Excluding the gains and charges, Dillard's earningswould have been 76 cents per share – three centsbetter than expected by Wall Street, according toThomson First Call.
Moreover, revenue and sales for period were relatively unchanged at $2.3 billion compared to $2.29 billion for the same period last year.
However, the retailer saw its gross margin improve by140 basis points. It attributes the gain to itsefforts to improve its merchandise mix, as well ashigher levels of markups combined with lower levels of markdowns.
During the final quarter, Dillard's completed theclosure of a 44,000-sf store in Yuma, AZ, which wasfollowed by the opening of a new 98,000-sf store atYuma Palms. A 178,000-sf location in Metrocenter Mallin Jackson, MS also closed in 2004. This year, theretailer plans to close its Harding Mall location inNashville, TN and its Westgate Shopping Centerlocation in Cleveland.
Currently, Dillard's operates 329 department stores, spanning 29 states.
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