Dillard's Loss Grows as Outlays Trimmed
September 1, 2008,
Department store operator Dillard's recorded a deeper loss for the second quarter, noting its expense reduction efforts had fallen short.
Net loss for the quarter ended Aug. 2 was $38.3 million or 51 cents per share, compared to the loss of $25.2 million or 31 cents per share for the same period last year. This year's quarter included a pretax gain of $17.9 million from selling a corporate jet, as well as pretax charges of $9.8 million on asset impairment and store closing costs.
Quarterly sales of $1.61 billion were down 3%; comps fell 4%.
The 318-store chain closed four units in the quarter, one in August, and plans another nine clsoings in the near term. Dillard's has slashed capital expenditures — with a planned $204 million for the year, compared to $396 million in 2007 — and said it anticipates additional store closings this year.
Other reductions in the quarter included cutting inventory by 5% and slicing $17.2 million out of advertising and SG&A areas.
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