Markdowns Negatively Impact Dillard’s Q2 Results

Second quarter net sales at Dillard’s were down as company officials pinned the decline on “significant markdowns” that were needed to help offset higher inventory levels.

For the 13-week period ended July 29, net sales were $1.427 billion, down from sales of $1.452 billion in the same quarter the year prior. Net loss was $17.1 million, or $0.58 per share, compared to net income of $12.1 million, or $0.35 per share, in the second quarter of 2016.

Net sales include the operations of the company’s construction business, CDI Contractors.

Total merchandise sales for the second quarter were $1.385 billion, a decline from sales of $1.403 billion in the prior year’s quarter. Comparable store sales were down 1%. Sales in the company’s home products selection were among those with quarterly sales results below expectations, the company said.