Bonds of Hema BV fell more than 10 percent to record lows after the Dutch department-store operator owned by Lion Capital said quarterly earnings dropped 34 percent.

Hema’s 315 million euros ($349 million) of senior notes due June 2019 fell 10.8 cents on the euro to 72.2 cents, the biggest decline since they were sold in June last year, according to data compiled by Bloomberg. The company’s 150 million euros of senior unsecured bonds due December 2019 dropped 20.4 cents to 38.1 cents, also the biggest decrease since the bonds were sold in 2014.

The retailer said earnings came under pressure as it sold goods at discounts and spent more on promotions. Earnings before interest, tax, depreciation and amortization plunged to 7.6 million euros in the fiscal first quarter ended May 3 from 11.6 million euros a year earlier, according to a company statement.

Officials at Hema didn’t return e-mails seeking comment on the earnings and the bond performance. Officials at Lion Capital weren’t immediately available to comment.

Hema said it had drawn down 60 million euros from its credit facility, leaving 16.3 million. To bolster liquidity, it also arranged a new 25 million-euro facility, which ranks senior to its bonds.

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