Dillard's (NYSE:DDS) Posts Quarterly Earnings Results, Beats Estimates By $5.91 EPS

Key Points

• Dillard’s beat earnings expectations sharply, reporting quarterly EPS of $16.04 versus the $10.13 consensus estimate. Revenue also came in ahead of forecasts at $1.59 billion.
• Sales improved year over year, with quarterly revenue up 2.7% and total retail sales rising 3%, while comparable-store sales also increased 3%. Management said gains were broad-based across merchandise categories.
• The strong profit was helped by a litigation settlement gain, including a $104.1 million pre-tax boost, which means investors may want to be cautious about extrapolating the headline earnings strength.

Dillard's (NYSE:DDS - Get Free Report) released its earnings results on Thursday. The company reported $16.04 earnings per share for the quarter, beating the consensus estimate of $10.13 by $5.91, Zacks reports. The business had revenue of $1.59 billion for the quarter, compared to the consensus estimate of $1.55 billion. Dillard's had a return on equity of 27.55% and a net margin of 8.81%.The business's quarterly revenue was up 2.7% compared to the same quarter last year. During the same quarter last year, the business posted $10.39 earnings per share.

Dillard's Trading Up 0.2%

DDS stock traded up $0.83 during midday trading on Thursday, hitting $533.75. 249,183 shares of the company's stock were exchanged, compared to its average volume of 96,070. The business has a 50-day simple moving average of $582.27 and a two-hundred day simple moving average of $620.52. The company has a current ratio of 2.65, a quick ratio of 1.31 and a debt-to-equity ratio of 0.24. The stock has a market capitalization of $8.34 billion, a PE ratio of 14.66 and a beta of 1.17. Dillard's has a 1-year low of $386.85 and a 1-year high of $741.97.

Dillard's Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Tuesday, March 31st were paid a dividend of $0.30 per share. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.20 annualized dividend and a yield of 0.2%. Dillard's's dividend payout ratio (DPR) is 3.30%.

More Dillard's News

Here are the key news stories impacting Dillard's this week:

• Positive Sentiment: Q1 EPS came in at $16.04, well above the $10.13 consensus estimate, showing materially stronger profitability than analysts expected. Dillard's, Inc. Reports First Quarter Results
• Positive Sentiment: Total retail sales rose 3% year over year to $1.518 billion, with comparable-store sales also up 3%, indicating steady demand across the chain. Dillard's, Inc. Reports First Quarter Results
• Positive Sentiment: Retail gross margin improved to 45.8% from 45.5%, suggesting better merchandising and pricing execution. Dillard's, Inc. Reports First Quarter Results
• Positive Sentiment: Management said sales improved across all merchandise categories, with especially strong gains in home and furniture, accessories, lingerie, and shoes, reinforcing the upbeat quarter. Dillard's Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Neutral Sentiment: The quarter included a $104.1 million pre-tax litigation settlement gain, which boosted reported earnings and may limit how much investors should extrapolate from the headline profit number. Litigation settlement boosts Dillard’s Q1 profitability
• Neutral Sentiment: Operating expenses rose to 28.3% of sales, and inventory increased 3%, which are manageable but worth watching for margin pressure later in the year. Dillard's, Inc. Reports First Quarter Results

Institutional Investors Weigh In On Dillard's

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Atlas Capital Advisors Inc. acquired a new stake in Dillard's during the fourth quarter worth $29,000. Quarry LP acquired a new stake in Dillard's during the third quarter worth $33,000. Global Retirement Partners LLC increased its stake in Dillard's by 6,300.0% during the fourth quarter. Global Retirement Partners LLC now owns 64 shares of the company's stock worth $39,000 after acquiring an additional 63 shares during the last quarter. EverSource Wealth Advisors LLC increased its stake in Dillard's by 790.0% during the second quarter. EverSource Wealth Advisors LLC now owns 89 shares of the company's stock worth $37,000 after acquiring an additional 79 shares during the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new stake in Dillard's during the second quarter worth $55,000. Institutional investors and hedge funds own 67.15% of the company's stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on DDS shares. Weiss Ratings restated a "hold (c)" rating on shares of Dillard's in a research report on Wednesday, January 21st. JPMorgan Chase & Co. decreased their target price on Dillard's from $524.00 to $449.00 and set an "underweight" rating on the stock in a research report on Wednesday, February 25th. UBS Group raised their target price on Dillard's from $460.00 to $465.00 and gave the company a "sell" rating in a research report on Wednesday, May 6th. Wall Street Zen downgraded Dillard's from a "buy" rating to a "hold" rating in a research report on Saturday, March 28th. Finally, Telsey Advisory Group cut their price target on Dillard's from $700.00 to $650.00 and set a "market perform" rating for the company in a report on Wednesday, February 25th. Three analysts have rated the stock with a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Dillard's has a consensus rating of "Reduce" and a consensus target price of $521.33.

Dillard's Company Profile

Dillard's, Inc NYSE: DDS, headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard's equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men's and women's apparel, accessories, cosmetics, footwear, and home furnishings.

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