LITTLE ROCK, Ark.—Dillard’s posted a $26.7 million net loss in its fiscal second quarter, as compared to a $38.3 million net loss in the second quarter of last year.
The department-store retailer was able to improve its bottom line through expense reductions—especially in the crucial areas of selling, general and administrative expenses, which fell 17.2 percent in the quarter; and cost of sales, which decreased by 11.4 percent. William Dillard II, chief executive officer, said the company “continued significant benefits from our aggressive actions pertaining to inventory management, expense reduction and cash conservation” in the face of declining sales, which for the second quarter dropped 11.2 percent to $1.4 billion. Same-store merchandise sales declined 13 percent.
The company said it has identified five locations for closure for the remainder of 2009, after closing its store in Tullahoma, Tenn., during the second quarter. Dillard’s “remains committed to closing underperforming stores where appropriate,” the statement said.