Department store chain Dillard’s saw net income decline last fiscal year, reflecting challenging market conditions.

The company’s net income slid 17.1 per cent to $738.8 million as net sales fell 1.7 per cent to $6.8 billion.

During the fourth quarter, net income went down 13.4 per cent to $250.5 million while net sales decreased 0.1 per cent to $2.1 billion.

“Our fourth quarter results were respectable considering the continued weak consumer environment,” said Dillard’s CEO William T Dillard II.

Despite the negative performance, the company paid its shareholders a special dividend of $20 per share in January.

Dillard’s is set to open its Empire Mall location in Sioux Falls, South Dakota in March, marking its 30th state of operation.