Dillard's Shares Drop After Sales Miss Expectations

Department store chain Dillard's Inc. stock slid 1.8% in after-hours trade Thursday, after the department store chain reported fiscal first-quarter results that fell short of expectations. For the quarter ended May 2, earnings came in at $109.6 million, or $2.66 a share, compared with $111.7 million, or $2.56 a share, in the same period a year ago. That was below the FactSet consensus for earnings per share of $2.78. Sales edged up to $1.57 billion from $1.55 billion but missed the FactSet estimate of $1.61 billion, as weakness in the home and furniture categories offset strength in the juniors' and childrens' apparel categories. Same-store sales declined 1%, compared with the FactSet consensus for an increase of 1.7%. "We are disappointed with our first quarter performance. Our 1% sales decline hampered our ability to leverage operating expenses and to drive net income growth," said Chief Executive William Dillard. "Although inventory is higher than we would like, we believe the levels are manageable." The stock has lost 0.8% year to date through Thursday's close, while the S&P 500 has gained 3%.