Tags: Dillard’s | DDS | Macy’s | retail

Dillard’s Aims to Outpace Competitors

By    |   Tuesday, 16 Aug 2011 02:26 PM

A rocky year hasn’t sidelined apparel retailer Dillard’s (DDS). The stock is up nearly 10 percent this year while big competitors like Macy’s (M) barely eke out a return. Bedrock merchandising values drive the Little Rock, Ark. company, which was founded in 1938 by retailing savant William Dillard. Today there are 315 stores in 29 states, mainly in the South.

In 2010, more than half of Dillard’s sales were driven by women’s apparel. Lately, the retailer has moved up-market into the better apparel segment to compete with Macy’s, notes Standard & Poor’s analysts.

Dillard’s is notching good results. Second-quarter earnings more than tripled to 32 cents per share versus 10 cents a year ago. Comparative store sales rose six percent. However, Dillard’s retail gross margin of 33.7 percent was flat, disappointing some analysts.

In a note to investors, Dillard’s CEO William T. Dillard II said that the retailer would keep shooting for “enhanced service levels to match our improving merchandise mix.” In the past few years, the retailer has expanded its web site and focused on higher profitability at stores with low occupancy costs. Exclusive brand merchandise, accounting for 22.7 percent of Dillard’s sales in 2011, also helps, analysts add.

Challenges ahead

Dillard’s soon may face headwinds though. Of the two analysts tracked by Thomson/First Call, one has a strong buy recommendation and one has a hold on Dillard’s.

S&P analysts recently lowered its Dillard’s recommendation to hold, citing aggressive competition, higher apparel prices hitting stores, and other near-term challenges. The company reports next in mid-November.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
A rocky year hasn t sidelined apparel retailer Dillard s (DDS). The stock is up nearly 10 percent this year while big competitors like Macy s (M) barely eke out a return. Bedrock merchandising values drive the Little Rock, Ark. company, which was founded in 1938 by...
Dillard’s,DDS,Macy’s,retail
257
2011-26-16
Tuesday, 16 Aug 2011 02:26 PM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved