Dillard's Inc. (DDS - Get Report) shares fell more than 13% in premarket trading on Thursday, Nov. 15, after the department store chain announced quarterly earnings that missed analysts' estimates.

Shares of Dillard's, which trade on the New York Stock Exchange, fell to $64 before the market opened Thursday.

The Little Rock, Arkansas-based company reported fiscal third-quarter net income of $7.4 million, or 27 cents a share, down from $14.5 million, or 50 cents, in the year-earlier period.

Sales rose to $1.42 billion from $1.36 billion. Same-store sales - a widely-watched performance gauge among retailers - rose 3%, above the 1% consensus estimate of analysts surveyed by FactSet.

"While we are encouraged by our 3% comparable sales performance, this was a disappointing quarter as markdowns weighed heavily on gross margin, particularly in the first month," CEO William Dillard said in a statement. "However, operating performance improved as the quarter progressed and sales turned positive."

Dillard's joins a growing list of retail companies that are struggling to maintain profits amid strong competition from the likes of Amazon.com Inc.  (AMZN - Get Report) and discount retailers like Costco Wholesale Corp.  (COST) and Walmart Inc.  (WMT - Get Report) . Shares of Macy's (M - Get Report)  took a hit on Wednesday despite the company reporting better-than-expected earnings.

Analysts and investors are watching retailers' financial performance closely ahead of the critical holiday shopping season, which informally kicks off after  Thanksgiving.