Dillard’s reduces 2Q loss to $2.9M

Dillard’s Inc. of Little Rock reported a loss of $2.9 million for its second quarter, far better than the $17.1 million loss reported for the same quarter a year ago.

The loss amounted to 10 cents per share, compared with a loss of 58 cents per share a year ago, the company said Thursday. Four analysts surveyed by Zacks Investment Research projected a loss of 41 cents per share.

“While we are not happy with a loss for the quarter, our 32 percent improvement in year-to-date pretax income is a positive,” William T. Dillard II, the company’s chief executive officer, said in a news release. “We believe this reflects the continued strength of our customers and their interest in our merchandise selections, and it is encouraging as we head into the important back half of the year.”

Department stores on Wednesday reported a surprisingly healthy sales gain of 1.2 percent in July, according to the Commerce Department’s monthly retail sales report. Macy’s said Wednesday that sales at stores that have been open for at least a year rose unexpectedly in the quarter that ended Aug. 4, its third straight quarterly gain.

Including revenue from Dillard’s-owned CDI Contractors LLC, net sales for the second quarter were $1.46 billion, up from $1.42 billion in the same quarter last year, matching analysts’ projections, Dillard’s reported Thursday.

Same-store sales rose 1 percent.

Total merchandise sales at Dillard’s 267 stores, 25 clearance centers and Internet store were $1.4 billion, up 2 percent from the same quarter last year.

Dillard’s shares fell $7.18, or 8.7 percent, to close Thursday at 75.80. On Wednesday, Dillard’s shares fell more than 14 percent.

For the quarter, Dillard’s reported above-trend sales in men’s apparel and accessories and juniors’ and children’s apparel. Sales in home and furniture and cosmetics were consistent with trend, and sales in ladies’ accessories and lingerie were slightly below trend. The company noted below trend performances in shoes and ladies’ apparel.

The 2017 second-quarter losses were attributed to high inventory and large markdowns, Dillard’s said in that report.

Operating expenses for the quarter were $408 million, up $8 million from a year ago, primarily because of increased payroll costs.

The company purchased 39,400 shares, for $3.1 million, as part of its $500 million stock repurchase plan announced in March.