Noncash asset impairment and store closure charges threw Dillard’s Inc. to a nearly $150 million loss in the fourth quarter.
The company reported late Thursday that for the three months ended Jan. 31 the loss was $149.3 million, or $2.03 a share, against income of $47.3 million, or 63 cents, in the same year-ago quarter.
Most of the loss came from pretax charges of $177.9 million for asset impairments and store closures and $2.9 million for losses and remediation expenses related to Hurricane Ike. In comparison, the prior year’s quarter had pretax asset impairment and store closure charges of $16.1 million and an income tax benefit of $10.3 million.
Excluding special items, Dillard’s had a loss of 31 cents a share in the most recent quarter and net income of 62 cents a share in its year-ago counterpart.
Total revenues fell 5.7 percent to $2.08 billion from $2.21 billion. That includes a sales drop of 5.7 percent to $2.04 billion from $2.16 billion and a comparable-store sales decline of 8 percent.
“Our extensive cost reduction measures resulted in a $67.3 million savings but were not enough to offset the significant declines in sales and gross margin that we experienced during the quarter,” said William Dillard 2nd, chief executive officer. “We remain committed to conserving our cash, managing our inventory, reducing our expenses and improving our merchandise assortments to emerge a stronger competitor in the long term.”
For the year, the loss was $241.1 million, or $3.25 a diluted share, against income of $53.8 million, or 68 cents, in 2007. Excluding special items, the loss last year was $1.56 a diluted share versus net income of 55 cents in the prior period. Revenues fell 5.2 percent to $6.99 billion from $7.37 billion.
The company said it owns 86 percent of its total store square footage, and that total maturities of long-term debt in 2009 and 2010 combined are less than $26 million.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)