NEW YORK — Dillard’s Inc. significantly reduced its third-quarter loss and easily beat analysts’ consensus estimates even though total revenues were flat.
The results sent shares of Dillard’s surging in Tuesday trading, jumping 8.5 percent, or $1.76, to close at $22.46 in New York Stock Exchange trading.
In the three months ended Oct. 29, the Little Rock, Ark.-based department store chain posted a net loss of $2.7 million, or 3 cents a share, which compared with a loss of $18.7 million, or 23 cents, a year ago. Analysts had been expecting a loss of 21 cents in the most recent quarter. Total revenues in the third quarter were flat at $1.76 billion, which included sales of $1.73 billion versus $1.7 billion a year ago. Same-store sales increased 2 percent.
In the nine months, Dillard’s more than doubled its net earnings to $23 million, or 28 cents, versus $9.1 million, or 11 cents, last year. Total revenues were down 1.3 percent to $5.33 billion from $5.4 billion.
The firm said sales of accessories, lingerie, shoes and junior apparel outperformed in the quarter, while sales in children’s apparel, home decorations and furniture underperformed. Sales in the western region were above trend, while sales in the central region were below trend.
Dillard’s is working to attract new customers by expanding its offerings in upscale and contemporary fashions, which include exclusive branded merchandise. The company also said it is continuing to use technology to localize its assortments by store to meet customer needs.
The department store chain added that it has been granted $6.5 million from an antitrust settlement with Visa Check/Mastermoney but decided to exclude the expected settlement proceeds in its quarterly and nine-month financial statements.
Dillard’s has four closed stores because of Hurricanes Rita, Wilma and Katrina. They are expected to stay shut for the rest of the fiscal year. A total of 60 Dillard’s stores were affected by the storms.