A Surprise Profit Powers Dillard's Stock 24% Higher Thursday Morning
Shares of Dillard's (NYSE: DDS), one of the nation's largest department store retailers, soared over 24% Thursday morning after delivering a surprise third-quarter profit.
Third-quarter revenue checked in at $1.42 billion, down from the prior year's $1.46 billion, but ahead of analysts' estimates that called for $1.41 billion. Net income checked in at $5.5 million, or $0.22 per share, which was again below the prior year's $7.4 million, or $0.27 per share, but ahead of analysts who called for a $0.29 loss per share.
There were a couple of other noteworthy third-quarter figures. Dillard's posted a 13-basis-point increase in retail gross margins, which was a drastic turnaround from the second-quarter decline of 319 basis points. Comparable-store sales were flat, which was another sequential improvement from the 2% second-quarter decline. CEO William T. Dillard II said in a press release, "While we were not satisfied with the third quarter, it was a substantial improvement over the second quarter."
Source Fool.com
