Weak economy continues to hammer Dillard’s operations
San Antonio Business Journal
Dillard’s Inc. posted a $56 million net loss during the third quarter as the department store chain took a double hit of asset impairment and store closing charges and Hurricane Ike-related expenses.
Dillard’s (NYSE: DDS) reported a $56 million net loss, or 76 cents per share, on revenues of $1.5 billion for the 13-weeks ended Nov. 1, 2008. This compares to a net loss of $11.3 million, or 15 cents per share, on revenues of $1.63 billion during the same period a year ago.
During the quarter, Dillard’s recorded asset impairment and store-closing charges of $9.3 million as a result of the company closing seven under-performing stores, including its 120,000-square-foot Rivercenter Mall store in Downtown San Antonio. The company also took a $4.4 million charge related to hurricane expenses during the quarter.
The company closed its Mall of the Mainland store in Texas City during the quarter after experiencing severe damage from Hurricane Ike.
Dillard’s has been in the process of closing under-performing stores as a result of the weak economy.
“The oppressive economic environment clearly weighed heavily on our results during the third quarter. We continue to take aggressive action to navigate these challenging times,” Dillard’s CEO William Dillard II says.
Dillard’s will close a total of 21 under-performing stores in 2008. The company also dramatically reduced capital-spending and is tightening operating expenses throughout the company.
“These efforts are not only designed to position ourselves to weather near-term economic uncertainty but also to position Dillard’s well for the long term,” Dillard says.
Little Rock, Ark.-based Dillard’s still has stores at North Star Mall, Ingram Park Mall, The Shops at La Cantera and Rolling Oaks Mall in San Antonio.
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