Categories AlphaGraphs, Earnings, LATEST, Retail

Dillard’s stock sinks to a new 52-week low as Q2 loss widens and sales drop

Dillard’s (NYSE: DDS) reported its second quarter of 2019 earnings results after the market closed yesterday. The department store chain’s loss widened in the quarter, missing the analysts’ estimates. Dillard’s stock, which closed down 3.7% at $58.76 yesterday, hit a new 52-week low today morning when it opened at $47.95.

Dillard’s (DDS) stock sinks to a new 52-week low as Q2 2019 loss widens and sales drop

Sales decreased 3% year-over-year to $1.427 billion, while merchandise sales declined 2% to $1.378 billion. Comparable store sales also decreased by 2% for the quarter ended August 3, 2019. Dillard’s loss expanded to $40.7 million or $1.59 per share in Q2 2019 from a loss of $2.9 million or $0.10 per share in the prior-year quarter. Analysts had expected Dillard’s to report a loss of 70 cents per share.

Related: Macy’s vs. Dillard’s – What’s your pick?

The net loss for the 13 weeks ended August 3, 2019, included a pretax gain of $4.9 million ($3.8 million after-tax or $0.15 per share) primarily related to the sale of a store property. While sales in the juniors’ and children’s apparel, men’s apparel and accessories and home and furniture categories were above the trend, the company experienced dismal sales in the ladies’ apparel and accessories and lingerie categories.

Dillards's comparable store sales decreased 2% in the second quarter of 2019

During the recently ended quarter, the Little Rock-based retailer purchased $48.9 million (approximately 0.8 million shares) of Class A common stock under its $500 million share repurchase program.

Read: Rite Aid (RAD) stock tanks to multi-year low after new CEO takes the helm

The retail sector companies’ performances have taken a toll during the past few years as they are facing heavy competition from online retail giants like Amazon (NYSE: AMZN) and retail store operators like Walmart (NYSE: WMT).

Wednesday, Dillard’s peer Macy’s (NYSE: M) reported its second quarter earnings results that failed to meet consensus views. The Cincinnati, Ohio-based retailer also lowered its earnings outlook for fiscal 2019. A bunch of retailers including Kohl’s (NYSE: KSS), Urban Outfitters (NASDAQ: URBN), Toll Brothers (NYSE: TOL), Target (NYSE: TGT) and L Brands (NYSE: LB) are set to report their recently ended quarters’ results next week.

Dillard’s stock had dropped 6% so far in this year and 25% in the past 12 months.

Follow our Google News edition to get the latest stock market, earnings and financial news at your fingertips

Most Popular

United Parcel Service (UPS) seems on track to regain lost strength

Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic

IPO Alert: What to look for when Boundless Bio goes public

Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.

Nike (NKE) bets on innovation and partnerships to return to high growth

Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top