Dillard’s narrows Q2 loss even as sales fall

Expense control paid off for Dillard’s in the second quarter.

Dillard’s reported a net loss of $8.6 million, or $0.37 per share, for the quarter that ended Aug. 1, compared with a net loss of $40.7 million, or $1.59 per share, in the year-ago period.

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(The net loss includes a net tax benefit related to the Coronavirus Aid, Relief, and Economic Security Act.)

Analysts had estimated a loss of $4.54 per share.

Dillard’s said it expects to be in a net operating loss position for the fiscal year. 

Net sales, which include the company’s construction business, CDI Contractors LLC, fell 36% to $919 million. Total retail sales (which excludes CDI) for the quarter declined 35% to $893.2 million.  

“During the quarter, we worked hard to control inventory and expenses,” William T. Dillard II, CEO. “These measures allowed us to improve gross margin and substantially narrow the loss from the prior year second quarter. We will maintain this conservative financial approach as we move forward.” 

During the quarter, Dillard’s permanently closed store locations in Waterloo, Iowa; Clovis, New Mexico; and Lawton, Oklahoma. The company ended the quarter with 251 Dillard’s stores and 31 clearance centers spanning 29 states.