Dillard's to Trim Mix, Workers
December 8, 2008,
Looking to cut costs amid slumping gross margins and slowing sales, Dillard's said it will pare assortments, reducing product duplication among vendors and eliminating under-performing brands.
The 317-unit chain posted a loss for the third quarter ended Nov. 1 of $56.0 million, or 76 cents per share, compared to a year-ago loss of $11.3 million, or 15 cents per share.
Gross margin as a percent of sales fell 390 basis points, largely due to markdowns, the company said. Sales fell 10% to $1.508 billion, with comps down 9%.
Dillard's said expected availability on its $1.2 billion revolving credit facility following the company's peak borrowing requirement remains in excess of $500 million. Dillard's is also making a "strategic staff reduction" of about 500 associates from among its 60,000 employees. It will affect some 60 of its roughly 2,400 workers in the Little Rock area.
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