* Q1 shr profit 9 cents excluding item
* Wall St view loss 18 cents
* Q1 sales down 12 pct to $1.474 billion
* Shares up 11 pct
(Adds analyst estimates, share price)
SAN FRANCISCO May 15 (Reuters) - Dillard's Inc surprised Wall Street by reporting a quarterly profit as the department store chain slashed costs and inventories, helping to offset slumping sales and its shares rose 11 percent.
Dillard's on Friday said net income for the fiscal first-quarter ended May 2 rose to $7.7 million, or 10 cents per share, from $2.7 million, or 4 cents per share, a year earlier.
Excluding a gain of 1 cent per share, it reported earnings of 9 cents per share. That compared with analysts' average estimate for a loss of 18 cents per share, according to two analysts polled by Reuters Estimates.
Net sales fell to $1.474 billion from $1.676 billion.
'Our aggressive efforts with regard to inventory management, expense reduction and cash conservation clearly benefited us during the quarter,' said Dillard's Chief Executive Officer William Dillard II, in a statement.
Dillard's is one of many department store retailers that has faced steep sales declines in recent months as shoppers back off from spending on non-essential items in the recession. Such consumer thrift has hurt the department store sector, and earlier in the day, J.C. Penney Co Inc said its quarterly sales fell nearly 6 percent.
The retailer has said it will close five underperforming stores this year and close more when appropriate to improve results. It closed 21 stores in 2008, and has been taking steps to cut costs amid increased scrutiny from activist investors.
Dillard's also has planned for lean inventory to avoid discounting and excess merchandise as consumer spend sparingly.
As of May 2, Dillard's operated 306 namesake stores and nine clearance centers in the United States on Friday. Its shares rose 11 percent in late trading to $8.32 from a close on the New York Stock Exchange of $7.51.
(Reporting by Nicole Maestri; additional reporting by Aarthi Sivaraman editing by Carol Bishopric) Keywords: DILLARDS/ (nicole.maestri@thomsonreuters.com, +1 415 677-3975; Reuters Messaging: nicole.maestri.reuters.com@reuters.net;) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
* Wall St view loss 18 cents
* Q1 sales down 12 pct to $1.474 billion
* Shares up 11 pct
(Adds analyst estimates, share price)
SAN FRANCISCO May 15 (Reuters) - Dillard's Inc surprised Wall Street by reporting a quarterly profit as the department store chain slashed costs and inventories, helping to offset slumping sales and its shares rose 11 percent.
Dillard's on Friday said net income for the fiscal first-quarter ended May 2 rose to $7.7 million, or 10 cents per share, from $2.7 million, or 4 cents per share, a year earlier.
Excluding a gain of 1 cent per share, it reported earnings of 9 cents per share. That compared with analysts' average estimate for a loss of 18 cents per share, according to two analysts polled by Reuters Estimates.
Net sales fell to $1.474 billion from $1.676 billion.
'Our aggressive efforts with regard to inventory management, expense reduction and cash conservation clearly benefited us during the quarter,' said Dillard's Chief Executive Officer William Dillard II, in a statement.
Dillard's is one of many department store retailers that has faced steep sales declines in recent months as shoppers back off from spending on non-essential items in the recession. Such consumer thrift has hurt the department store sector, and earlier in the day, J.C. Penney Co Inc said its quarterly sales fell nearly 6 percent.
The retailer has said it will close five underperforming stores this year and close more when appropriate to improve results. It closed 21 stores in 2008, and has been taking steps to cut costs amid increased scrutiny from activist investors.
Dillard's also has planned for lean inventory to avoid discounting and excess merchandise as consumer spend sparingly.
As of May 2, Dillard's operated 306 namesake stores and nine clearance centers in the United States on Friday. Its shares rose 11 percent in late trading to $8.32 from a close on the New York Stock Exchange of $7.51.
(Reporting by Nicole Maestri; additional reporting by Aarthi Sivaraman editing by Carol Bishopric) Keywords: DILLARDS/ (nicole.maestri@thomsonreuters.com, +1 415 677-3975; Reuters Messaging: nicole.maestri.reuters.com@reuters.net;) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.