Dillard’s Rises After Quarterly Profit Tops Some Estimates
Dillard’s Inc. (DDS), the Arkansas-based department-store chain, rose the most in a year in New York trading after first-quarter profit surpassed some analysts’ estimates.
Earnings excluding some items amounted to $1.27 a share, Dillard’s said today in a statement. The average of two analysts surveyed by Bloomberg was for a profit of 91 cents. Sales in the period ended April 30 climbed 1.1 percent to $1.5 billion.
Revenue has risen in back-to-back quarters after 15 consecutive declines. The Little Rock-based chain, founded more than 70 years ago by William T. Dillard, operates more than 300 locations across the U.S., as well as an online shop.
Nordstrom Inc., the Seattle-based retailer with more than 100 department stores, cut its annual profit forecast yesterday, citing acquisition costs. The shares fell 3.1 percent.
Dillard’s jumped $7.41, or 15 percent, to $56 at 4:02 p.m. in New York Stock Exchange composite trading, the largest gain since May 2010. The shares have risen 48 percent this year.
The chain announced plans in January to form a wholly owned real estate investment trust, seeking greater access to debt and equity markets to enhance liquidity. Dillard’s said it would transfer to the REIT some of its interests in properties and then lease them back.
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