Dillard’s CEO William T. Dillard II voiced disappointment in the retailer’s gross margin performance despite what he called a profitable fourth quarter. Although comparable sales grew 2%, the retailer said lower-than-anticipated sales necessitated heavy markdowns.
The company reported a net income of $119.1 million for the quarter and fiscal 2014, a 26% decline from $161.4 million for the same period a year earlier. Net sales in the fourth quarter declined 3% to $2.03 billion from $2.1 billion. During the fiscal year, net income dropped about 4% to $323.7 million from $336 million, and net sales slightly declined to $6.53 billion from $6.59 billion. Same-store sales rose 1%.
Looking ahead, Dillard’s plans to open two new stores in October 2014: a 200,000-sq.-ft. location in The Shops at Summerlin in Las Vegas and a 180,000-sq.-ft. location in The Mall at University Town Center in Sarasota, Fla.