Little Rock, AR, August 14, 2006--Dillard's posted a quarterly profit, helped by strong demand for furniture in areas recovering from last year's hurricanes.
The company posted net income of $15.7 million, or $0.20 per share, in the second quarter ended on July 29, compared with a year-earlier loss of $12.3 million, or $0.15 per share.
Results in the latest period included a slew of unusual items, such as gains from the sale of the company's interest in a mall joint venture, proceeds from litigation, a tax benefit and a charge from another legal matter.
Excluding those items, Dillard's had a profit of $0.06 per share, spokeswoman Julie Bull said.
Analysts on average expected a loss of 5 cents per share, according to Reuters Estimates. It was not immediately clear whether analysts had excluded one-time items.
Net sales dipped slightly to $1.688 billion from $1.692 billion.
The Little Rock, Arkansas-based retailer said furniture sales were particularly strong in the latest quarter, especially in areas recovering from last year's hurricanes. Children's clothing demand was weaker than normal.
Dillard's has been adding more upscale and contemporary clothing in a bid to attract fashion-conscious shoppers who will spend more for trendy styles. The strategy shift has helped it keep prices up, and gross margin improved by 110 basis points in the latest quarter.
