has stunned investors with a show of strength this morning -- but it might ultimately come at the expense of possible growth.
Shares of the company soared 22% to $9.15 in morning trading, after the company surprised Wall Street on Friday by reporting better-than-expected first-quarter profit as other department stores struggle with severe declines.
But President Alex Dillard said at an annual meeting on Saturday that the way the company will weather the storm is through strong liquidity, conservatively managing inventory, cutting expenses -- and possibly more store closures.
During the quarter, income grew to $7.7 million or 10 cents a share, from $2.7 million, or 4 cents, in the year-ago period.
Excluding a gain of 1 cent per share, the company reported earnings of 9 cents, far surpassing analysts' expectation of a loss of 18 cents a share.
Sales fell 12% to $1.47 billion from $1.68 billion.
Earlier last week, rivals
posted declines in their profit.
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