DALLAS, May 21, 2003/ FW/ --- Unseasonably cold weather, the Iraq War and general challenging retail environment took its toll on department stores sales for the first quarter.

Arkansas-based Dillards,Inc., reported a net income of $24.3 million for Q1 2003 compared to compared to a loss of $472.2 million for Q1 2002. The company posted $0.20 earnings per diluted share, $0.14 less than Wall Street estimate of $0.43. But this is also higher compared to last year's net loss of $5.56/share.

Dillards posted sales at $1.8 billion for the first quarter of 2003, a 5% decrease compared to $1.9 billion last year. The company attributed the decrease to a 'very challenging' retail environment.

Birmingham, Alabama-based Saks, Inc. net income for the first quarter, before recognition of certain items fell to $12.6 million from $21.9 million last year. Earnings per share of $0.09 is a penny less than Wall Street estimates and $0.06 less compared to $0.15 last year.

After recognition of certain items, net income was $14.4 million, or $.10 per share, Q1 2003, compared to a net loss of ($25.4) million, or ($.17) per share, last year.

Discount retailer Ross Stores, Inc. fared better with a reported 7% increase to $0.63 earnings per share this quarter compared to $0.59 earnings per share last year.

The company posted net earnings of $49.3 million, up from $47.7 million during the same period last year. Sales for the first quarter increased 7% to $879 million, from $820 million for the prior year. Comparable store sales for the same period declined 3% from the prior year.