In the second quarter, Dillard’s managed to avoid expected deep losses as it navigated store closures and other challenges related to the COVID-19 pandemic.
Dillard’s reported a second quarter net loss of $8.6 million or 37 cents per share, versus a net loss of $40.7 million, or $1.59 per share, for the period a year earlier. Included in net loss for the prior-year quarter was a gain of $3.8 million after tax, or 15 cents per share, related to the sale of a store property.
The company readily beat a Zacks Investment Research analyst consensus estimate of a $4.54 loss per share in the second quarter after making operational adjustments in the aftermath of a tough first quarter.
The department store didn’t report comparable store sales data for the second quarter due to the temporary closure of its brick-and-mortar stores and the effects the shutdown had including on online sales. Net sales for the quarter were $919 million versus $1.43 billion in the period a year before. Net sales included the operations of the company’s construction business, CDI Contractors. Total retail sales were $893.2 million versus $1.38 billion in the year-previous quarter.
William Dillard II, CEO of Dillard’s, said, “During the quarter, we worked hard to control inventory and expenses. 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.”