Dillard’s loss widens
-- Home Textiles Today, 11/26/2008 9:44:00 AM
Little Rock, Ark. – Looking to cut costs amid slumping gross margins and slowing sales, Dillard’s today said it will pare its assortments, reducing product duplication among vendors and eliminating under-performing brands.
“We continue to take aggressive action to navigate these challenging times,” said ceo William Dillard II.
The 317-unit department store posted a loss for the third quarter ended Nov. 1 of $56.0 million, or 76 cents per share. In last year’s third quarter, Dillard’s loss was $11.3 million, or 15 cents per share.
Gross margin as a percent of sales fell 390 basis points, largely due to markdowns, the company said.
Sales fell 10% to $1.508 billion, with comps down 9%.
Dillard’s reported that expected availability on its $1.2 billion revolving credit facility following the company’s peak borrowing requirement remains in excess of $500 million.