Department store chain Dillard’s Inc. suffered a double-digit percentage slide in its share price this morning after reporting a second-quarter loss.
The Little Rock, Ark.-based company posted a net loss of $2.9 million, or $0.10 per share, for the 13 weeks ended Aug. 4, compared with a net loss of $17.1 million during the same period a year earlier.
This news weighed on its share price, which was 13 percent lower at $72.18 in mid-morning trading, after closing down 10.9 percent on Wednesday as the retail sector suffered a hit, fueled by investors’ worries over Macy’s Inc. and Turkey’s currency crisis.
In a statement accompanying the results, William T. Dillard 2nd, Dillard’s chief executive officer, admitted that the company was “not happy” with the loss, but pointed to a “positive” 32 percent improvement in year-to-date pretax income.
“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,” he said.
Net sales at Dillard’s, which has 296 stores across the country, were $1.47 billion, up slightly from a year earlier, with men’s apparel and accessories and children’s apparel leading the way. In contrast, ladies’ accessories and lingerie were slightly below trend.
It said sales were slightly above trend in the Western region, consistent in the Eastern region and slightly below trend in the Central region.
This came as government figures showed that spending at department stores rose 1.2 per cent between June and July, helping to push up overall retail sales by 0.5 percent.