A Copy of the Letter:
Barington Capital Group, L.P. represents a group of investors that owns over 3.2% of the outstanding common stock of Dillard's, Inc. We have invested in Dillard's, whose shares we believe are undervalued, as we are convinced that we can assist the Company in dramatically improving shareholder value.
As we have not been able to reach you by telephone, we are writing to request to meet with you and members of your management team. We would like to discuss a number of measures that we believe will increase the Company's profitability to levels achieved by its peers and better utilize the Company's substantial asset base. These include initiatives that would augment the Company's existing operating strategy in areas such as merchandising, inventory management and cost containment, as well as measures to unlock the value of the Company's real estate portfolio.
We have substantial experience helping improve shareholder value as an investor in a number of retail, apparel and footwear companies including Syms, Warnaco, Pep Boys, Stride Rite, Steven Madden, Payless ShoeSource, Nautica and Maxwell Shoe. We hope that we can work together with you to maximize shareholder value at Dillard's.