DDS' Q4 results may reflect a tough retail climate. Efforts to boost store productivity, enhance omnichannel and strengthen domestic operations look promising.
DDS' omnichannel efforts bode well. The company is benefiting from its efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business.
DDS benefits from its efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business.
PBYI, DDS and NJR made it to the Zacks Rank #1 (Strong Buy) momentum stocks list on December 24, 2024.
PBYI, DDS and PINC made it to the Zacks Rank #1 (Strong Buy) value stocks list on December 24, 2024.
ZIM, NATL and DDS made it to the Zacks Rank #1 (Strong Buy) value stocks list on December 12, 2024.
Dillard's, despite facing headwinds, has strong fundamentals, a low debt balance sheet, and sufficient cash flows to cover dividends, making it attractive for dividend investors. The company rewards shareholders with frequent special dividends, including a recent $25 special dividend, enhancing its appeal despite a low average yield. Dillard's has consistently repurchased shares, reducing share count by 62% over nine years, which boosts earnings growth and dividend safety.
I maintain a hold rating on Dillard's due to ongoing macro headwinds, poor demand outlook, and risks to gross margin performance. 3Q24 results showed a 3.8% revenue decline, with negative same-store sales and margin contractions. The promotional environment is intense, and DDS may need to mark down inventory, further risking margin contraction amid already poor demand.
Dillard's gets downgraded to a neutral/hold rating from my prior buy rating, while it also has kept its Fitch BBB- investment-grade rating this year. Lackluster YoY retail sales growth forecasts this holiday season, combined with weak market share vs major retail peers, is not a winning combo punch. The bright spot for Dillard's is a strong profit margin vs. peers, as well as low debt-to-equity.
DDS showcases better-than-expected Q3 performance driven by stringent expense management leading to strong retail gross margins and lower operating expenses.
Dillard's (DDS) came out with quarterly earnings of $7.73 per share, beating the Zacks Consensus Estimate of $6.47 per share. This compares to earnings of $9.30 per share a year ago.
DDS' Q3 results are likely to reflect the impacts of a tough retail backdrop due to lower consumer spending and higher operating expenses.