Dillard's reports 1 percent sales rise in 2013

REPORT_ Dillard's has announced operating results for the 13 and 52 weeks ended February 1, 2014 including record fiscal year earnings per share adjusted for certain items of 6.99 dollars versus 6.33 dollars in the prior year. Total merchandise sales for the 52-week period ended

February 1, 2014 were 6.439 billion dollars and 6.489 billion dollars for the 53-week period ended February 2, 2013. Based upon comparable 52-week periods ended February 1, 2014 and February 2, 2013, total sales increased 1 percent and sales in comparable stores increased 1 percent for the fiscal year.

Company's

fourth quarter comparable store sale increased 2 percent and its diluted earnings per share excluding certain items stood at 2.69 dollars versus 2.87 dollars. Retail gross margin decline of 180 basis points of sales, whereas operating expense improvement of 90 basis points of sales.

Dillard's reported net income for the 13-week period ended February 1, 2014 of 119.1 million dollars (2.71 dollars per share) compared to net income of 161.4 million dollars (3.36 dollars per share) for the 14 weeks ended February 2, 2013.

Commenting on the results, Dillard's Chief Executive Officer, William T. Dillard, II, stated, “Although it was a profitable fourth quarter, we are disappointed in our gross margin performance, as lower than anticipated sales necessitated heavier markdowns. We are pleased with our expense control as well as with our strong cash flow for the year.”

Dillard's reported net income for the 52-week period ended February 1, 2014 of 323.7 million dollars (7.10 dollars per share) compared to net income of 336.0 million dollars (6.87 dollars per share) for the 53-week period ended February 2, 2013. Total merchandise sales for the 13-week period ended February 1, 2014 were 2.013 billion dollars and 2.087 billion dollars for the 14-week period ended February 2, 2013. Based upon comparable 13-week periods ended February 1, 2014 and February 2, 2013, total merchandise sales increased 1 percent in the fourth quarter.

Sales trends for the fourth quarter were strongest in ladies' accessories and lingerie followed by shoes. Sales trends were strongest in the Central region, followed by the Eastern and Western regions, respectively. Net sales (which include the operations of the Little Rock, Arkansas headquartered company's gross margin from retail operations decreased 180 basis points of sales to 32.8 percent for the 13 weeks ended February 1, 2014 compared to 34.6 percent for the 14 weeks ended February 2, 2013.

Gross margin from retail operations decreased 40 basis points of sales to 35.7 percent for the 52 weeks ended February 1, 2014 compared to 36.1 percent for the 53 weeks ended February 2, 2013. Consolidated gross margin for the 52 weeks ended February 1, 2014 decreased 30 basis points of sales to 35.3 percent from 35.6 percent during the 53 weeks ended February 2, 2013.

Dillard's plans to open two new stores in October of 2014 in Las Vegas, Nevada and Sarasota, Florida.