Department store chain Dillard's Inc has posted a greater third quarter loss of $15.8 million, after losing $5.1m in the same period a year ago.

The Arkansas-based company also reported a year-on-year sales fall of two per cent for the quarter, down to $1.7 billion, with a particular weakness in children's apparel amid unseasonably warm weather.

Gross margin, meanwhile, slipped due to sales pressure and Dillard's' attempt to keep inventories tight by marking down merchandise, the company said.