Men’s Margins Help Drive Dillards to Loss in Quarter
LITTLE ROCK – Dillards reported a net loss for the 13 weeks ended August 4, 2007 of $25.2 million compared to net income of $15.7 million in the year earlier period. They blamed the loss on lower margins and excessive markdowns, particularly in the men’s apparel and accessories and home departments.
Net sales for the 13 weeks were $1.649 billion compared to $1.685 billion in the prior period, a decline of 2%. Sales in comparable stores declined 3%.
Net sales in the Central region were slightly better than the Company’s total performance for the period. Sales were consistent with trend in the Western region and below trend in the Eastern region. Sales in the juniors’ and children’s apparel category and the home and other category declined significantly more than trend during the period.
Penetration of exclusive brand merchandise for the 26 weeks ended August 4th was 23.8% compared to 23.4% in 2006.
