WWD.com/retail-news/department-stores/dillards-womens-cosmetics-sales-slip-in-2013-7624200/
government-trade
government-trade

Dillard’s Women’s, Cosmetics Sales Slip in 2013

Accessories, men’s register small increases, according to annual report.

Dillard’s Inc.’s women’s apparel and accessories businesses traveled in very different directions last year.

Dillard’s annual report, filed with the Securities and Exchange Commission late Thursday, shows that women’s apparel sales declined 0.9 percent last year, to about $1.44 billion of the firm’s $6.53 billion in sales, or 22 percent of the total. Cosmetics, responsible for about 15 percent of sales, were down 2 percent to about $980 million.

The largest increase was registered by women’s accessories and lingerie, revenues of which were up 5.8 percent to $1.05 billion. Footwear volume was identical in size after a 2.5 percent increase in sales.

 

RELATED CONTENT: WWD Research Roundup >>

Overall for the year, Dillard’s sales were off 0.9 percent, with comparable-store sales up 1 percent after excluding the extra week in fiscal 2012. Net income fell 3.7 percent to $323.7 million, or $7.10 a diluted share.

Sales of men’s apparel and accessories, at 17 percent the second-largest business within Dillard’s, were up 0.2 percent to about $1.11 billion.

Juniors’ and children’s apparel sales rose 1.4 percent to about $522.5 million, while home and furniture sales trended down 5.3 percent to about $325 million.

The remaining 1 percent of sales came from Dillard’s construction business, CDI Contractors.

Dillard’s included changes in sales by category, as well as the share of the total business each classification represents, in its annual report. In 2012, when overall sales rose 5.3 percent to $6.59 billion, women’s accessories and lingerie sales rose 10.2 percent, men’s apparel and accessories 6.9 percent, shoes 5.4 percent, cosmetics 4 percent, juniors’ and children’s apparel 3.5 percent and women’s apparel 2.7 percent. Only home and furniture declined, contracting 4.6 percent.

When Dillard’s reported fourth-quarter results on Feb. 24, it cited ladies’ accessories and lingerie as its strongest sales category, followed by shoes.

According to the annual report, sales per square foot ticked up to $130 last year from $129 in 2012 while turnover dropped to 2.8 times a year from 2.9 times. Comparable-store inventories rose 5 percent.