Dillard’s Inc. provided further evidence of the struggles at department stores as it reported a 37.2 percent drop in net income for 2016 on a 6.1 percent fall in sales to $6.2 billion.
The retailer said net income for the year ended Jan. 28 came out to $169.2 million, or $4.93 a share, down from $269.4 million a year ago, or $6.91 a share.
Sales during 2016 were $6.2 billion, compared to $6.6 billion the previous year. In the fourth quarter alone, net sales dropped to $1.9 billion from $2.1 billion, in part due to a 6 percent decline in total merchandise sales.
“Our operating results reflect another quarter of mall traffic declines from continued retail industry challenges,” said Dillard’s chief executive officer William T. Dillard II.
In response to the declines, Dillard said the company is “ramping up” efforts to bring “more distinctive brand and service experiences” in-store and online.
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“Our strong balance sheet provides us support in these challenging times,” Dillard added.
The company noted that its weakest selling categories were home and furniture and shoes, but categories that fared better “relative to the total trend” were women’s and men’s apparel and accessories.
Dillard’s repurchased $80.6 million in company stock during 2016 and, according to the ceo, paid out $256 million to shareholders.
The retailer has struggled over the last year, posting regular income drops each quarter and missing even lowered expectations.
In 2015, Dillard’s top three executives even took pay cuts ranging between roughly 16 and 27 percent.