UPDATE: Dillard's Posts Downbeat Q4 Earnings, But Sales Top Views

reported weaker-than-expected earnings for the fourth quarter. However, the company's sales exceeded expectations. The Little Rock, Arkansas-based company posted quarterly earnings of $130.5 million, or $3.17 per share, compared to $119.1 million, or $2.71 per share, in the year-ago period. Its total sales climbed 5% to $2.14 billion. However, analysts were expecting earnings of $3.18 per share on revenue of $2.1 billion. Its same-store sales gained 3% for the latest quarter. Merchandise sales, excluding construction business CDI Contractors LLC, surged 3% to $2.07 billion. Gross margin from retail operations, excluding CDI, widened 103 basis points of sales in the latest quarter. At January 31, 2015, inventory rose 2% from February 1, 2014. Dillard's repurchased 2.8 million shares of Class A common stock at an average price of $104.44 per share during the 52 weeks ended January 31, 2015. During the fourth quarter, Dillard's closed its Southgate Mall location in Sarasota, Florida. Dillard's Chief Executive Officer, William T. Dillard, II, said, "We finished 2014 with our best sales performance of the year in the most important quarter. Our 3% sales increase was supported by a strong 103 basis point retail gross margin improvement, as customers responded well to our improved mix and service throughout the holiday season." Dillard's shares gained 1.79% to $125.70 in after-hours trading.