Dillard’s, benefitting from improved sales trends and a tax gain, reported that its net income for the fourth quarter ended Feb. 3 rose to $157.6 million, or $5.55 per share, compared to net income of $56.9 million, or $1.72 per share, for the corresponding fourth quarter of 2017.
Included in the net income for the fourth quarter is an estimated tax benefit of approximately $77.4 million, or $2.73 per share, related to the Tax Cuts and Jobs Act of 2017.
“The positive sales trends we noted at the end of the third quarter continued through the fourth,” said William T. Dillard 2nd, Dillard’s chief executive officer. “Our 3 percent comparable-store sales increase combined with gross margin improvement and relative expense control led to a notable increase in pretax income for the quarter. We are working to keep this momentum into 2018.”
Macy’s also reported a strong fourth quarter, with earnings rising to $1.33 billion, versus $475 million in the year-ago period, and comparable sales up 1.4 percent.
Dillard’s net sales for the 14 weeks ended Feb. 3, 2018 were about $2.1 billion and $1.9 billion for the 13 weeks ended Jan. 28, 2017. Net sales include the company’s construction business, CDI Contractors LLC.
Total merchandise sales (which exclude CDI) in the last quarter were just over $2 billion versus $1.9 billion a year ago. Total merchandise sales increased 7 percent in the latest quarter, which had 14 weeks versus 13 weeks a year ago.
Dillard’s said that ladies’ apparel, juniors’ and children’s and men’s apparel and accessories were above the average company sales trend during the fourth quarter. Sales were slightly below trend in cosmetics, ladies’ accessories, lingerie, home and furniture and shoes.
For the year, Dillard’s reported net income of $221.3 million, or $7.51 per share, compared to net income of $169.2 million, or $4.93 per share, for the prior year.
Net sales for the year were virtually flat at about $6.3 billion. Comparable sales were also flat.