Dillard’s is closing a majority of its stores in an effort to limit COVID-19 spread.
The Little-Rock-based clothing retailer is closing approximately 200 out of a total of 285 stores. However, Dillard’s online store remains open currently.
Dillard’s executives said that store closures would be likely in a March 31 Securities and Exchange Commission (SEC) filing on March 31. The company said that closures would lead to negative impacts on the its revenue stream.
“The foregoing measures, and additional measures that have been and may continue to be taken in response to the COVID-19 pandemic, including mandatory or voluntary store closures by the Company, have substantially decreased and may continue to decrease the number of customers that visit our stores and the shopping malls in which our stores are located. A decrease in customers due to the COVID-19 pandemic or measures taken in response thereto has had and could continue to have a material adverse effect on our business,” according to the SEC filing
Dillard’s has held out closing its stores compared to other clothing chains, including Macy’s and J.C. Penney. A March 24 CNBC article pointed out that Dillard’s remained open. A Dillard’s spokesperson told CNBC that the stores were remaining open “with limited hours where not ordered to close by state or local government mandate.”
Since March 24, Dillard’s stock price has fallen sharply, from a price of $47.07 per share on that date. From March 30 to April 3, the company’s stock fell from $41.18 to $23.87. However, it has risen to $34.87 as of April 7.