Dillard’s is reopening stores even as it posted a loss for the first quarter that missed a Wall Street estimate.
Net loss was $162 million, or $6.94 per diluted share, versus net income of $78.6 million, or $2.99 per diluted share, in the quarter a year earlier. An analyst consensus estimate published by MarketBeat anticipated a loss of $1.65 per diluted share.
Net sales were $786.7 million while net revenues were $821.6 million versus $1.47 billion and $1.5 billion, in the year-prior period, Dillard’s reported.
The company’s CEO William Dillard said, “COVID-19 has impacted every aspect of our business. The mall business in general and department stores, specifically, have been particularly hard hit. While our balance sheet was already strong, we took decisive, sometimes difficult actions to preserve liquidity and ensure our long-term viability. As we reopen stores, we see positive things happening. We believe people are ready to get out and shop. We are hoping this is the start of better times.”
As the COVID-19 pandemic progressed, Dillard’s started closing stores on March 19 as mandated by state and local governments, the company noted. By April 9, all 285 Dillard’s store locations temporarily closed. On May 5, the company reopened 45 stores in select markets where allowed. The company reopened an additional 80 stores on May 12. The reopened stores are operating with reduced hours.
Inclusive of 24 clearance centers, Dillard’s has reopened 149 locations. In addition, the company currently plans to reopen 116 Dillard’s stores and five clearance centers during the week of May 17. Once the additional locations are open, Dillard’s will have a total of 241 department stores and 29 clearance centers in operation.