CORRECTING and REPLACING Dillard's, Inc. Reports Second Quarter Results

LITTLE ROCK, Ark.--(Business Wire)--
In the third financial table, Condensed Consolidated Balance
Sheets, under Liabilities and Stockholders' Equity, the Current
portion of long-term debt and capital leases, under the columns August
2, 2008, and August 4, 2007, should read: 103.5 and 99.3 (sted 285.0
and 171.2) and Other short-term borrowings should read: 285.0 and
171.2 (sted 103.5 and 99.3).

The corrected release reads:

DILLARD'S, INC. REPORTS SECOND QUARTER RESULTS

Dillard's, Inc. (NYSE: DDS) (the "Company" or "Dillard's")
announced operating results for the 13 weeks ended August 2, 2008.
This release contains certain forward-looking statements. Please refer
to the Company's cautionary statement regarding forward-looking
information included below under "Forward-Looking Information."

Net loss for the 13 weeks ended August 2, 2008 was $38.3 million
($0.51 per share) compared to net loss of $25.2 million ($0.31 per
share) for the 13 weeks ended August 4, 2007. Included in net loss for
the 13 weeks ended August 2, 2008 is a pretax gain of $17.9 million
($11.2 million after tax or $0.15 per share) primarily related to the
sale of an airplane and asset impairment and store closing charges of
$9.8 million ($6.1 million after tax or $0.08 per share).

Dillard's Chief Executive Officer, William Dillard, II, stated,
"We continued to manage our business conservatively during the second
quarter in the prevailing economic uncertainty. However, our
accomplishments with expense reduction were not sufficient to offset
large disappointments in sales and gross margin. Clearly, we believe
our continued efforts to reduce both capital and operating
expenditures and to close under-performing stores are appropriate as
we weather challenging economic times. At the same time, we remain
focused on fashion and on presenting our customers with an exciting
and differentiated assortment storewide." Dillard's will drive
awareness of its new fall looks with the "Dillard's - The Style of
Your Life." campaign which will be featured in top fashion
publications and online and supported by in-store events.

Highlights of Dillard's second quarter include:

-- Control of inventory in a difficult retail environment with
comparable inventory declining 5%.

-- Reduction of advertising, selling, administrative and general
expenses ("S G & A") with a decline of $17.2 million during
the second quarter.

-- Continuing review of store base for closures with seven more
announced since the first quarter press release for a total of
14 store closures announced to date for fiscal year 2008.

-- Repurchase of $17.4 million (1.8 million shares) of Class A
Common Stock under the Company's $200 million share repurchase
plan.

Revenues

Sales for the 13 weeks ended August 2, 2008 were $1.608 billion
compared to sales for the 13 weeks ended August 4, 2007 of $1.649
billion. Total sales declined 3% during the 13-week period. Sales in
comparable stores declined 4%.

During the 13 weeks ended August 2, 2008, net sales were above the
Company's average performance trend in the Central region and below
trend in the Eastern and Western regions. Sales in the juniors' and
children's apparel category and in the home and furniture category
were significantly below trend during the period.

Gross Margin/Cost of Sales

Gross margin declined 170 basis points of sales during the 13
weeks ended August 2, 2008 primarily as a result of increased
markdowns in a notably difficult sales environment. Inventory in
comparable stores declined 5% as of August 2, 2008 compared to August
4, 2007. Cost of sales as a percentage of sales for the period was
70.2% compared to 68.5% for the prior year second quarter.

Advertising, Selling, Administrative and General Expenses

S G & A expenses declined $17.2 million during the second quarter
resulting from expense saving measures implemented earlier in the
fiscal year. S G & A expenses were $479.3 million and $496.5 million
during the 13 weeks ended August 2, 2008 and August 4, 2007,
respectively. Notable savings in payroll and related payroll taxes,
advertising, and supplies were partially offset by increases in
utilities. Management believes expense saving measures could result in
annualized savings of $50 million for fiscal 2008.

Interest and Debt Expense

Net interest and debt expense increased $0.3 million for the 13
weeks ended August 2, 2008 compared to the 13 weeks ended August 4,
2007. Interest and debt expense was $23.0 million and $22.7 million
during the 13 weeks ended August 2, 2008 and August 4, 2007,
respectively. As of August 2, 2008, short-term borrowings of $285
million and letters of credit totaling $95.5 million were outstanding
under the Company's $1.2 billion revolving credit facility.

Share Repurchase

During the 13 weeks ended August 2, 2008, Dillard's repurchased
$17.4 million of Class A Common stock (1.8 million shares) under its
$200 million share repurchase program. The program was authorized by
the board of directors in November of 2007. Remaining authorization
under the open-ended program at August 2, 2008 was $182.6 million.

Store Information

During the second quarter, Dillard's closed the following store
locations:

-0-
*T
Center City Square Feet
----------------------------------------------------------------------
Turfland Mall Lexington, KY 214,000
Greeley Mall Greeley, CO 124,000
McFarland Mall Tuscaloosa, AL 180,000
Pine Ridge Mall Pocatello, ID 120,000
*T

Dillard's closed its Rivercenter location in San Antonio, Texas
during the month of August (120,000 square feet).

Dillard's has announced the following near-term 2008 store
closures:

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*T
Center City Square Feet
----------------------------------------------------------------------
Chesterfield Town Center Richmond, VA 110,000
Towne Mall Franklin, OH 113,000
Knoxville Center Knoxville, TN 115,000
Hickory Hollow Nashville, TN 200,000
Eastland Clearance Charlotte, NC
Center 162,000
Valley View Mall Dallas, TX 300,000
Crossroads Mall Omaha, NE 200,000
Boulevard Mall Las Vegas, NV 200,000
*T

Dillard's remains committed to aggressively closing
under-performing stores under the right terms. Management continues to
review the store base for such closures and expects to announce
additional closures during fiscal year 2008.

At August 2, 2008, the Company operated 318 Dillard's locations
and 9 clearance centers spanning 29 states and an Internet store at
www.dillards.com.

-0-
*T
Dillard's, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In Millions, Except Per Share Data)

13-Week Period Ended
-------------------------------------------

August 2, 2008 August 4, 2007
-------------------------------------------

% of % of
Amount Net Amount Net
Sales Sales
--------- ------ ----------------- -------

Net sales $1,607.8 - $1,648.5 -
Total revenues 1,646.5 102.4% 1,689.1 102.5%
Cost of sales 1,129.4 70.2 1,128.7 68.5
Advertising, selling,
administrative and general
expenses 479.3 29.8 496.5 30.1
Depreciation and
amortization 73.0 4.6 74.9 4.5
Rentals 14.5 0.9 13.5 0.8
Interest and debt expense,
net 23.0 1.4 22.7 1.4
Gain on disposal of assets (17.9) (1.1) (0.6) 0.0
Asset impairment and store
closing charges 9.8 0.6 - -
--------- ----------------
Loss before income taxes
and equity in earnings of
joint ventures (64.6) (4.0) (46.6) (2.8)
Income tax benefit (27.3) (17.3)
Equity in earnings of joint
ventures (1.0) 0.0 4.1 0.3
--------- ------ ---------------- ------
Net loss $ (38.3) (2.4)% $ (25.2) (1.5)%
========= ====== ================ ======

Basic loss per share $ (0.51) $ (0.31)
========= ================
Diluted loss per share $ (0.51) $ (0.31)
========= ================
Basic weighted average
shares 75.0 80.3
========= ================
Diluted weighted average
shares 75.0 80.3
========= ================
*T

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*T
Dillard's, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(In Millions, Except Per Share Data)

26-Week Period Ended
------------------------------------

August 2, 2008 August 4, 2007
------------------------------------

% of % of
Amount Net Amount Net
Sales Sales
-------- ------ ------------ ------

Net sales $3,283.4 - $ 3,411.5 -
Total revenues 3,360.1 102.3% 3,488.5 102.2%
Cost of sales 2,247.7 68.5 2,254.8 66.1
Advertising, selling,
administrative and general
expenses 960.3 29.2 995.1 29.2
Depreciation and amortization 145.1 4.4 149.8 4.4
Rentals 30.1 0.9 26.7 0.8
Interest and debt expense, net 45.1 1.4 43.5 1.2
Gain on disposal of assets (18.0) (0.5) (0.6) 0.0
Asset impairment and store
closing charges 10.7 0.3 0.7 0.0
-------- ------------
(Loss) income before income taxes
and equity in earnings of
joint ventures (60.9) (1.9) 18.5 0.5
Income taxes (benefit) (25.7) 8.0
Equity in earnings of joint
ventures (0.4) 0.0 7.3 0.2
-------- ------ ------------ -----
Net (loss) income $ (35.6) (1.1)% $ 17.8 0.5%
======== ====== ============ =====

Basic (loss) earnings per share $ (0.47) $ 0.22
======== ============
Diluted (loss) earnings per
share $ (0.47) $ 0.22
======== ============
Basic weighted average shares 75.1 80.3
======== ============
Diluted weighted average
shares 75.1 81.7
======== ============
*T

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*T
Dillard's, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(In Millions)

August 2, August 4,
2008 2007
--------- ---------
Assets
Current Assets:
Cash and cash equivalents $ 108.4 $ 91.9
Accounts receivable 9.3 10.2
Merchandise inventories 1,750.5 1,804.0
Other current assets 51.2 41.9
-------- ----------
Total current assets 1,919.4 1,948.0

Property and equipment, net 3,154.6 3,243.7
Goodwill 31.9 34.5
Other assets 159.8 175.9
-------- ----------

Total Assets $5,265.7 $5,402.1
======== ==========

Liabilities and Stockholders' Equity
Current Liabilities:
Trade accounts payable and accrued expenses $ 744.2 $ 774.2
Current portion of long-term debt and capital
leases 103.5 99.3
Other short-term borrowings 285.0 171.2
Federal and state income taxes including
current
deferred taxes 27.3 23.5
-------- ----------
Total current liabilities 1,160.0 1,068.2

Long-term debt and capital leases 807.4 887.4
Other liabilities 218.6 221.9
Deferred income taxes 421.8 426.8
Guaranteed preferred beneficial interests in the
Company's subordinated debentures 200.0 200.0
Stockholders' equity 2,457.9 2,597.8
-------- ----------

Total Liabilities and Stockholders' Equity $5,265.7 $5,402.1
======== ==========

Other Information
(In Millions)

August 2, August 4,
2008 2007
--------- ---------

Square footage 56.6 56.8
========= =========
Capital expenditures
13 weeks ended $ 55.4 $ 129.4
26 weeks ended $ 119.7 $ 236.6
*T

Estimates for 2008

The Company is updating the following estimates for certain income
statement items for the fiscal year ending January 31, 2009 based upon
current conditions. Actual results may differ significantly from these
estimates as conditions and factors change - See "Forward-Looking
Information".

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*T
In Millions
2008 2007
Estimated Actual
----------- -----------

Depreciation and amortization $ 290 $ 299
Rental expense 62 60
Interest and debt expense, net 92 92
Capital expenditures 204 396
*T

Forward-Looking Information

The foregoing contains certain "forward-looking statements" within
the definition of federal securities laws. Statements made in this
release regarding the Company's plans to close under-performing
stores, reduce capital expenditures, reduce expenses, make changes to
its merchandise mix, and the Company's estimates of depreciation and
amortization, rental expense, interest and debt expense, capital
expenditures and expense savings for fiscal 2008 are forward looking
statements. The Company cautions that forward-looking statements
contained in this report are based on estimates, projections, beliefs
and assumptions of management and information available to management
at the time of such statements and are not guarantees of future
performance. The Company disclaims any obligation to update or revise
any forward-looking statements based on the occurrence of future
events, the receipt of new information, or otherwise. Forward-looking
statements of the Company involve risks and uncertainties and are
subject to change based on various important factors. Actual future
performance, outcomes and results may differ materially from those
expressed in forward-looking statements made by the Company and its
management as a result of a number of risks, uncertainties and
assumptions. Representative examples of those factors include (without
limitation) general retail industry conditions and macro-economic
conditions; economic and weather conditions for regions in which the
Company's stores are located and the effect of these factors on the
buying patterns of the Company's customers, including the effect of
changes in changes in prices and availability of oil and natural gas;
the impact of competitive pressures in the department store industry
and other retail channels including specialty, off-price, discount,
internet, and mail-order retailers; changes in consumer spending
patterns, debt levels and their ability to meet credit obligations;
adequate and stable availability of materials, production facilities
and labor from which the Company sources its merchandise; changes in
operating expenses, including employee wages, commission structures
and related benefits; system failures or data security; possible
future acquisitions of store properties from other department store
operators; the continued availability of financing in amounts and at
the terms necessary to support the Company's future business;
fluctuations in LIBOR and other base borrowing rates; potential
disruption from terrorist activity and the effect on ongoing consumer
confidence; epidemic, pandemic or other public health issues;
potential disruption of international trade and supply chain
efficiencies; world conflict and the possible impact on consumer
spending patterns and other economic and demographic changes of
similar or dissimilar nature. The Company's filings with the
Securities and Exchange Commission, including its report on From 10-K
for the fiscal year ended February 2, 2008, contain other information
on factors that may affect financial results or cause actual results
to differ materially from forward-looking statements.

Dillard's, Inc.
Julie J. Bull, 501-376-5965

Copyright Business Wire 2008