1991 Earnings Increase at May, Dillard Stores

May Department Stores Co. on Tuesday reported higher earnings for the fourth quarter and year, saying its stores did well despite the tough economy.

Separately, Dillard Department Stores Inc., another major retailer, also said earnings rose in the quarter and full year.

“The bottom line has benefited by the restructuring retailers have done, the belt tightening, eliminating of unprofitable operations and tight inventory control,” said analyst Walter Loeb, president of the Wall Street firm Loeb Associates.

St. Louis-based May, the nation’s seventh-largest retailer and one of its largest department store operators, said net income rose 5.6% to $266 million, or $2.12 a share, for the fiscal fourth quarter ended Feb. 1, from $252 million, or $2.00 a share, in the year-earlier period.

Revenue rose 2.4% in the quarter, to $3.36 billion from $3.28 billion.

“Our organization has performed well during what now has been two years of a difficult economy,” said Chairman and Chief Executive David Farrell.

For all of 1991, May said net earnings climbed 3% to $515 million, or $4.02 a share, from $500 million, or $3.88 a share, the prior year. Revenue edged up to $10.62 billion from $10.06 billion.

Wall Street greeted the report enthusiastically, driving May’s shares up $2.375 to $58.625 on the New York Stock Exchange.

Meanwhile, Dillard said fourth-quarter net rose 1.1% to $93.3 million from $92.3 million a year earlier. That was equal to $2.50 a share versus the year-earlier $2.49.

The Little Rock, Ark.-based retailer said sales for the quarter ended Feb. 1 rose 8.7% to $1.32 billion from $1.22 billion in the year-ago quarter.

For the full year, Dillard earned $206.2 million against $182.8 million in 1990. Sales rose nearly 12%, to $4.04 billion from $3.61 billion.

Dillard shares also gained strongly, rising $2.125 to $132.75.