Dillard's profits drop 30 percent

Dillard's Inc. reported first-quarter profits Wednesday of $42.9 million, down 30 percent from the $61.3 million the department store chain earned in the same period a year before.

Dillard's earned 53 cents per share for the period ending May 5, compared to 77 cents per share in the year-ago quarter. Analysts surveyed by Thomson Financial had projected Dillard's would post profits of 73 cents per share on revenue of $1.80 billion. Dillard's had sales of $1.76 billion, compared to $1.84 billion a year before.

Sales in stores open at least a year were down by 5 percent, and overall sales were down by 4 percent.

The Little Rock-based retailer said its sales of juniors and children's clothing declined disproportionately during the quarter. Dillard's said sales in the West were strongest, with the central region lagging. The company said sales in shoes were strong for the quarter.

The company said it had a $4.1 million gain, worth $2.6 million after taxes or 3 cents per share, for recovery of merchandise lost during the 2005 hurricane season.

Dillard's has 328 stores in 29 states in the South, Midwest and West.