Dillard's swings to 3rd-quarter profit

AP News
Posted: Nov 17, 2009 4:38 PM

Retailer Dillard's Inc. on Tuesday reported a third-quarter profit, reversing a year-ago loss, as lower expenses and a tax benefit boosted its bottom line and offset soft sales.

The company earned $8 million, or 11 cents per share, compared with a loss of $56 million, or 76 cents per share, a year ago. Results in the most recent quarter were helped by a tax benefit of 14 cents per share.

A year ago, results included hefty store closing charges and hurricane expenses, partially offset by a gain on the sale of a store.

Revenue for the 13 weeks ended Oct. 31 declined to $1.36 billion from $1.51 billion. But advertising, selling, administrative and general expenses were trimmed by $88.6 million because of cost-cutting and store closings.

"We continued to benefit from our improvements in inventory management, where we have focused on more conservative purchasing combined with efforts to better match the timing of receipts with demand," CEO William Dillard II said in a statement.

Shares rose $1.18, or 8.9 percent, to close at $14.51.