* Q3 profit of 11 cents per share
* Q3 sales of $1.36 bln
* Inventory down 22 percent vs year ago
* Shares up more than 9 pct
(Adds details on cost cuts, share move)
NEW YORK, Nov 17 Dillard's Inc (DDS.N) on
Tuesday reported a quarterly profit from a year-ago loss,
helped by a tax benefit and less inventory to counter weak
consumer spending, sending its shares up more than 9 percent.
The department store operator reported a net profit of $8
million, or 11 cents a share, in the third quarter that ended
Oct. 31, from a $56 million loss, or 76 cents a share, a year
earlier. The 2009 quarter included an income tax benefit of 14
cents per share.
Dillard's reported sales fell 9.9 percent to $1.36 billion
in the third quarter. It said gross margins had risen 4.2
percent during the quarter.
Inventory was reduced 22 percent compared with a year
earlier. Advertising, selling and other expenses decreased to
$88.6 million, to represent 29.6 percent of sales in the third
quarter from 32.5 percent of sales a year ago.
The company said it expected recent cost cuts and store
closures could yield a decline of more than $275 million in
operating expenses for the full fiscal year.
The company operated 302 Dillard's stores and 11 clearance
centers at the end of the quarter.
Dillards's shares jumped 9.1 percent, or $1.22, to $14.55
in early New York Stock Exchange trading.
(Reporting by Phil Wahba, editing by Dave Zimmerman and