Shares of department store chain Dillard's (DDS) - Get Report plunged on Friday after the company posted a quarterly loss wider than analysts' estimates amid an ongoing decline in same-store sales - a reflection of consumers' changing shopping habits that continue to keep shoppers at home and in front of their computer screens.
Dillard's on Thursday posted a fiscal second-quarter net loss of $40.7 million, or $1.59 a share, vs. a loss of $2.9 million, or 10 cents a share, a year-ago period. The per-share loss was more than double the 70-cent loss analysts polled by FactSet had been expecting.
Revenue fell to $1.43 billion from $1.47 billion in the year-ago period, also below FactSet consensus estimates of $1.5 billion. Same-store sales, a key metric measuring retailers' financial performance, fell 2% during the quarter.
Dillard's joins the likes of Macy's (M) - Get Report and other retailers whose balance sheets have been hit hard in the past few quarters from competition from the likes of Amazon.com (AMZN) - Get Report and other online retailers who have made it easier -- and cheaper -- to avoid the stores and malls.
For the three months ended in July, non-store retail sales in the U.S. rose 14.2% year over year, easily outstripping the 3.2% year-over-year comparison for overall retail sales.
"Clearly the shift to digital shopping is not only underfoot, or more properly stated on a variety of keyboards, it is accelerating, and the victims continue to be department stores, electronics and appliance stores, sporting goods and bookstores, and to a lesser extent clothing and furniture," wrote Chris Versace and Bob Lang in TheStreet's Trifecta Stocks column.
It has also been facing stiff competition from Walmart (WMT) - Get Report and other big-box discount retailers who have been posting strong earnings growth in part by focusing on boosting their retail clothing and accessories offerings.
Shares of Dillard's were down 9.35%, or $5.29 a share, at $51.30 in early trading on Friday.