Dillard’s reported a net loss for the first quarter of 162 million dollars or 6.94 dollars per share, compared to net income of 78.6 million dollars or 2.99 dollars per share, for the prior year first quarter. The company expects to be in a net operating loss position for the fiscal year. Net sales for the period were 786.7 million dollars compared to 1,465.4 million dollars in the previous year, while total sales decreased to 751 million dollars compared to 1,420.5 million dollars. Total retail sales decreased 47 percent for the 13-week period.
Commenting on the results, Dillard’s Chief Executive Officer William T. Dillard, II said in a statement: “Covid-19 has impacted every aspect of our business. The mall business in general and department stores, specifically, have been particularly hard hit. As we re-open 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, the Company began closing stores on March 19 and by April 9, all 285 store locations were temporarily closed. On May 5, the company re-opened 45 Dillard’s stores in select markets where allowed and the company re-opened an additional 80 Dillard’s stores on May 12, which are operating with reduced hours. Including 24 clearance centers, the company has re-opened 149 locations to date. Additionally, the company currently plans to re-open 116 Dillard’s stores and five clearance centers next week.
On April 30, 2020, the company entered into an amendment of its 800 million dollars senior unsecured revolving credit facility consistent with its liquidity needs. The company added that a 200 million dollars expansion option remains in place, and the maturity date remains August 9, 2022.