Dillard's, Inc. (DDS) has reported 32.26 percent plunge in profit for the quarter ended Jan. 28, 2017. The company has earned $56.90 million, or $1.72 a share in the quarter, compared with $84 million, or $2.31 a share for the same period last year.
Revenue during the quarter dropped 6.30 percent to $1,983.90 million from $2,117.40 million in the previous year period. Gross margin for the quarter expanded 49 basis points over the previous year period to 31.67 percent. Total expenses were 94.53 percent of quarterly revenues, up from 92.86 percent for the same period last year. That has resulted in a contraction of 167 basis points in operating margin to 5.47 percent.
Dillard's chief executive officer, William T. Dillard, II, stated, "Our operating results reflect another quarter of mall traffic declines from continued retail industry challenges. In response, we are ramping up our efforts to bring more distinctive brand and service experiences to Dillard's, both in-store and online. Our strong balance sheet provides us support in these challenging times, and during the year we returned $256 million to shareholders."
Operating cash flow improves
Dillard's, Inc. has generated cash of $517.20 million from operating activities during the year, up 14.88 percent or $67 million, when compared with the last year.
The company has spent $119.80 million cash to meet investing activities during the year as against cash outgo of $132.90 million in the last year. It has incurred net capital expenditure of $103.80 million on net basis during the year, down 25.96 percent or $36.40 million from year ago.
The company has spent $253.30 million cash to carry out financing activities during the year as against cash outgo of $518.20 million in the last year period.
Cash and cash equivalents stood at $347 million as on Jan. 28, 2017, up 71.02 percent or $144.10 million from $202.90 million on Jan. 30, 2016.
Working capital declines
Dillard's, Inc. has witnessed a decline in the working capital over the last year. It stood at $861.40 million as at Jan. 28, 2017, down 6.13 percent or $56.27 million from $917.67 million on Jan. 30, 2016. Current ratio was at 1.88 as on Jan. 28, 2017, down from 2.22 on Jan. 30, 2016.
Debt remains almost stable
Total debt of Dillard's, Inc. remained almost stable for the quarter at $820.60 million, when compared with the last year period. Total debt was 21.11 percent of total assets as on Jan. 28, 2017, compared with 21.31 percent on Jan. 30, 2016. Debt to equity ratio was at 0.48 as on Jan. 28, 2017, up from 0.46 as on Jan. 30, 2016.
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