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Exhibit 99.1
Dillard's Reports Third Quarter Results and
Repurchase of $111.6 Million of Class A Common Stock
Announces New Share Repurchase Plan
LITTLE ROCK, Ark.--(BUSINESS WIRE)--Nov. 19, 2007--Dillard's,
Inc.
(NYSE: DDS) (the "Company" or "Dillard's") announced operating
results
for the 13 weeks ended November 3, 2007. This release contains
certain
forward-looking statements. Please refer to the Company's
cautionary
statement regarding forward-looking information included below
under
"Forward-Looking Information".
Net loss for the 13 weeks ended November 3, 2007 was $11.3
million
($0.15 per share) compared to net income of $13.6 million ($0.17
per
share) for the 13 weeks ended October 28, 2006. Dillard's
attributes
the disappointing third quarter operating performance to
declines in
sales and gross margin rates during the period. Included in net
loss
for the 13 weeks ended November 3, 2007 is a pretax gain of
$11.1
million ($7.0 million after tax or $0.09 per share) related
to
hurricane recovery regarding a store damaged by Hurricane Rita
in
2005. The Company completed the cleanup of the damaged location
during
the third quarter. Also included in the thirteen weeks ended
November
3, 2007 are pretax asset impairment and store closing charges of
$3.7
million ($2.3 after tax or $0.03 per share).
Dillard's announces its repurchase of $111.6 million of its
Class
A Common Stock during the thirteen weeks ended November 3,
2007,
completing the repurchase activity authorized under its $200
million
share repurchase program approved by the board of directors in
May of
2005. Additionally, Dillard's announces that the board of
directors
has authorized a new share repurchase plan under which the
Company may
repurchase up to $200 million of its Class A Common Stock. The
new
open-ended authorization permits the Company to repurchase its
Class A
Common Stock in the open market or through privately
negotiated
transactions.
Dillard's Chief Executive Officer, William Dillard, II,
stated,
"Our third quarter performance was clearly disappointing as we
did not
accomplish the level of sales and gross margin necessary to
achieve
profitability. We remain committed to positive changes as we
continue
to improve and edit merchandise assortments to strengthen our
appeal
to both new and existing Dillard's customers."
Sales
Net sales for the 13 weeks ended November 3, 2007 were
$1.633
billion compared to sales for the 13 weeks ended October 28,
2006 of
$1.719 billion. Total net sales declined 5% during the 13-week
period.
Sales in comparable stores declined 6%.
During the 13 weeks ended November 3, 2007, net sales in the
Central region were slightly better than the Company's total
performance for the period. Sales were slightly below trend in
the
Eastern and Western regions. Sales in the juniors' and
children's
apparel category and the home and other category declined
significantly more than trend during the period.
Cost of Sales - Gross Margin
Cost of sales as a percentage of sales increased to 65.5%
during
the 13 weeks ended November 3, 2007 compared to 65.0% for the 13
weeks
ended October 28, 2006. The gross margin decline of 50 basis
points of
sales was primarily driven by higher markdowns. By
merchandise
category, Dillard's achieved gross margin improvement in shoes
and
men's apparel and accessories during the third quarter. The
gross
margin declines in the juniors' and children's apparel category,
the
ladies' apparel and accessories category and the home and
other
category exceeded the Company's average decline for the
period.
Comparable store inventory at November 3, 2007 declined 2%
compared to October 28, 2006.
Advertising, Selling, Administrative and General Expenses
Advertising, selling, administrative and general ("S G &
A")
expenses were $521 million and $513.2 million during the 13
weeks
ended November 3, 2007 and October 28, 2006, respectively.
Increases
in payroll, services purchased and pre-opening expenses were
partially
offset by declines in advertising expense.
Interest and Debt Expense
Interest and debt expense was $23.1 million and $23.4
million
during the 13 weeks ended November 3, 2007 and October 28,
2006,
respectively. As of November 3, 2007, short term borrowings of
$340
million and letters of credit totaling $73.9 million were
outstanding
under the Company's $1.2 billion revolving credit facility.
Share Repurchase Program
During the 13 weeks ended November 3, 2007, Dillard's
repurchased
$111.6 million (5.2 million shares) of the Company's Class A
Common
Stock, completing the repurchase activity authorized under its
$200
million share repurchase program in May of 2005.
Additionally,
Dillard's announces that the board of directors has authorized a
new
share repurchase plan under which the Company may repurchase up
to
$200 million of its Class A Common Stock. The new open-ended
authorization permits the Company to repurchase its Class A
Common
Stock in the open market or through privately negotiated
transactions.
Store Information
As previously, announced, Dillard's opened the following
locations
during the third quarter of 2007:
Store City Sq. Feet Month Opened
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Stonebriar Centre Frisco, Texas 200,000 September
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Ashley Park Newnan, Georgia 155,000 September
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Hill Country Galleria West Austin, Texas 145,000 September
------------------------ --------------------- ----------
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Fallen Timbers Toledo, Ohio 155,000 October
------------------------ --------------------- ----------
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Santan Village Gilbert, Arizona 155,000 October
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