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The economic downturn has meant lower sales for retailers such as department store chain Dillard's Inc. (NYSE: DDS) and apparel retailer Talbots Inc. (NYSE: TLB). On Wednesday both companies reported wider second-quarter losses.
Little Rock, Ark.-based Dillard's said it it lost $38.3 million, or 51 cents a share, in the quarter, compared with a loss of $25.2 million, or 31 cents a share, in the second quarter of the previous year. Same-store sales fell 4%, and overall revenue dropped to $1.65 billion from $1.69 billion a year ago.
Results included a gain of 15 cents per share, mostly from the sale of a company airplane, and store closing and other charges of 8 cents per share.
Analysts surveyed by Thomson Financial had expected a loss of 54 cents per share on revenue of $1.62 billion.
Dillard's said cost-cutting efforts in the second quarter were insufficient to offset disappointing results, but that the company would continue to close under-performing stores and cut back on advertising and general expenses.
Shares of Dillard's jumped 48 cents, or 4%, to $11.85 in early trading, before settling back down. Shares are down about 38% year to date.
Talbots' net loss of $25 million, or 47 cents per share, in its second quarter nearly doubled the year-ago loss of $13.3 million, or 25 cents per share, in the year-ago quarter. The Hingham, Mass.-based company blamed results on lower sales and restructuring charges. Revenue fell 8% to $528 million, and same-store sales fell 12%.
Analysts surveyed by Thomson Reuters, on average, had expected a loss of 34 cents per share on revenue of $532 million.
Talbots said that, in addition to restructuring charges, results were also dragged down by losses in its Talbots Kids, mens, and U.K. businesses, as well as aggressive markdowns of the J. Jill brand, partially offset by expansion of the Talbots brand merchandise gross margin.
Talbot's shares surged $3.20 per share, or 24.2%, to $13.20 by mid day. Shares have risen about 80% in the past three months.
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