Dark(er) days for Dillard’s?

Little Rock-based Dillard’s reported Wednesday a horrible third quarter in terms of earnings. The City Wire report included that Dillard’s posted total revenue in the first nine months of 2008 of $4.791 billion, down 5 percent from the same period in 2007. In the net income category, the company has lost $91.7 million in the first nine months, compared to a gain of $6.4 million in the same period of 2007 — that is almost a $100 million negative swing in net income.

Now comes 24/7 Wall Street with its list of the 10 retailers who might not survive to see 2009. The report might be overreaching — it’s doubtful 10 retailers will close their doors in the next six weeks — but it does provide insight into the troubled luxury retailer market.

According to the report: “Dillard’s (DDS) is a retail operator that really is in trouble. It has 318 stores, which makes it a relatively small operation in a world dominated by outfits like Sears (SHLD) which has more than 3000 locations. Dillard’s stock is at $3.75, down from a 52-week high of $23.11. S&P dropped the company’s credit rating recently and said, "The rating change reflects our belief that the company will be more challenged than previously expected by the current weak economic environment in the U.S., and that credit metrics will deteriorate more than we had originally projected." In October, the firm’s sales dropped more than 9% to $406 million. Dillard’s points to its revolving credit facility with JP Morgan as its lifeline. In the last quarter, the company lost $38 million. It made $45 million in debt services payments and has long-term debt of $807 million. In other words, no dry powder. It recently cut staff.”

On the bright side, Dillard’s is in good company. Talbot’s, Pier 1, Saks and Williams-Sonoma are also among the list of 10.