Dillard's, Inc. (DDS) has reported a 50.11 percent plunge in profit for the quarter ended Oct. 29, 2016. The company has earned $22.80 million, or $0.67 a share in the quarter, compared with $45.70 million, or $1.19 a share for the same period last year.
Revenue during the quarter dropped 4.51 percent to $1,406.50 million from $1,472.90 million in the previous year period. Gross margin for the quarter contracted 51 basis points over the previous year period to 37.51 percent. Total expenses were 96.40 percent of quarterly revenues, up from 94.22 percent for the same period last year. That has resulted in a contraction of 218 basis points in operating margin to 3.60 percent.
Operating income for the quarter was $50.70 million, compared with $85.20 million in the previous year period.
Dillard's chief executive officer, William T. Dillard, II, stated, "Our sales decline continued to weigh heavily on profitability during the third quarter. As we work through this tough time, we are focused on improving customer experience through attracting and maintaining premium brands while providing exceptional service. Shareholder return remains a priority, and we returned $55 million of cash to shareholders through share repurchase and dividends."
Operating cash flow improves significantly
Dillard's, Inc. has generated cash of $125.90 million from operating activities during the nine month period, up 51.14 percent or $42.60 million, when compared with the last year period.
The company has spent $92.40 million cash to meet investing activities during the nine month period as against cash outgo of $115.20 million in the last year period. It has incurred net capital expenditure of $72.40 million on net basis during the nine month period, down 40.90 percent or $50.10 million from year ago period.
The company has spent $155.90 million cash to carry out financing activities during the nine month period as against cash outgo of $271.80 million in the last year period.
Cash and cash equivalents stood at $80.50 million as on Oct. 29, 2016, down 19.58 percent or $19.60 million from $100.10 million on Oct. 31, 2015.
Debt comes down
Dillard's, Inc. has recorded a decline in total debt over the last one year. It stood at $837.80 million as on Oct. 29, 2016, down 11.79 percent or $112 million from $949.80 million on Oct. 31, 2015. Total debt was 20.02 percent of total assets as on Oct. 29, 2016, compared with 21.68 percent on Oct. 31, 2015. Debt to equity ratio was at 0.48 as on Oct. 29, 2016, down from 0.52 as on Oct. 31, 2015.
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