Dillard's same-store sales shrink in May

Department store operator Dillard's Inc. said Thursday that same-store sales dropped by 12 percent in May as consumers scaled back on spending.

Analysts polled by Thomson Reuters expected a narrower decline of 8 percent.

Same-store sales, or sales at stores open at least a year, are an important retail performance indicator because they measure sales at existing locations rather than newly opened ones.

The retailer said that overall sales declined 14 percent.

For the four weeks ended May 30, total sales were $430.1 million, compared with $499.7 million in May 2008.

For the 17 weeks ended May 30, sales in Dillard's same-store sales declined 13 percent. Total sales slipped 15 percent to $1.85 billion.

Dillard's says sales of home and furniture items were weak.

The company operates its department stores in 29 states nationwide.