SEATTLE, Aug 17 (Reuters) - Dillard's Inc posted a smaller-than-expected quarterly loss on Monday as the department store operator cut costs and inventory to offset lower sales.
The company's second-quarter net loss was $26.7 million, or 36 cents per share, compared with a loss of $38.3 million, or 51 cents per share, a year earlier.
Excluding items, Dillard's posted a loss of 43 cents a share, beating the average analyst expectation of a loss of 56 cents a share, according to Reuters Estimates.
Sales fell about 11.2 percent to $1.43 billion. Merchandise sales in same stores declined 13 percent.
Dillard's closed one store in the quarter and has identified five other locations to close in 2009. Dillard's said it would close underperforming stores, where appropriate.
Department stores have suffered in the recession as shoppers prefer to shop at discount stores and curtail spending on discretionary items such as clothes and home goods.
Last week, J.C. Penney Co Inc posted a smaller-than-expected quarterly loss, and forecast a same-store sales drop for the year.
Dillard's said advertising, selling, administrative and general expenses fell $82.6 million in the quarter, helped by store closures and savings in areas like payroll, advertising, and supplies. It expects such cost cuts and store closures to help operating costs decline more than $200 million for the year.
Dillard's said it reduced inventory by 19 percent during the quarter. The company said it would take a 'realistic' approach to stocking items, such as timing the receipt of merchandise to anticipated customer demand.
Dillard's shares were unchanged from its $9.99 close on the New York Stock Exchange.
(Reporting by Aarthi Sivaraman. Editing by Robert MacMillan and Carol Bishopric)
((aarthi.sivaraman@thomsonreuters.com +1 646 303 6191; Reuters Messaging: aarthi.sivaraman.reuters.com@reuters.net;)) Keywords: cb DILLARDS/ (See http://blogs.reuters.com/shop-talk/ for Shop Talk -- Reuters' retail and consumer blog.) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company's second-quarter net loss was $26.7 million, or 36 cents per share, compared with a loss of $38.3 million, or 51 cents per share, a year earlier.
Excluding items, Dillard's posted a loss of 43 cents a share, beating the average analyst expectation of a loss of 56 cents a share, according to Reuters Estimates.
Sales fell about 11.2 percent to $1.43 billion. Merchandise sales in same stores declined 13 percent.
Dillard's closed one store in the quarter and has identified five other locations to close in 2009. Dillard's said it would close underperforming stores, where appropriate.
Department stores have suffered in the recession as shoppers prefer to shop at discount stores and curtail spending on discretionary items such as clothes and home goods.
Last week, J.C. Penney Co Inc posted a smaller-than-expected quarterly loss, and forecast a same-store sales drop for the year.
Dillard's said advertising, selling, administrative and general expenses fell $82.6 million in the quarter, helped by store closures and savings in areas like payroll, advertising, and supplies. It expects such cost cuts and store closures to help operating costs decline more than $200 million for the year.
Dillard's said it reduced inventory by 19 percent during the quarter. The company said it would take a 'realistic' approach to stocking items, such as timing the receipt of merchandise to anticipated customer demand.
Dillard's shares were unchanged from its $9.99 close on the New York Stock Exchange.
(Reporting by Aarthi Sivaraman. Editing by Robert MacMillan and Carol Bishopric)
((aarthi.sivaraman@thomsonreuters.com +1 646 303 6191; Reuters Messaging: aarthi.sivaraman.reuters.com@reuters.net;)) Keywords: cb DILLARDS/ (See http://blogs.reuters.com/shop-talk/ for Shop Talk -- Reuters' retail and consumer blog.) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.