Dillard’s (NYSE:DDS) Shares Gap Up Following Better-Than-Expected Earnings

Dillard’s, Inc. (NYSE:DDS)’s share price gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $532.92, but opened at $588.00. Dillard’s shares last traded at $549.9290, with a volume of 28,015 shares traded.

The company reported $16.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.13 by $5.91. The firm had revenue of $1.59 billion for the quarter, compared to analyst estimates of $1.55 billion. Dillard’s had a return on equity of 31.89% and a net margin of 10.09%.The business’s revenue was up 2.7% on a year-over-year basis. During the same period in the previous year, the company posted $10.39 earnings per share.

Dillard’s Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Monday, May 4th. Stockholders of record on Tuesday, March 31st were paid a $0.30 dividend. The ex-dividend date of this dividend was Tuesday, March 31st. This represents a $1.20 dividend on an annualized basis and a dividend yield of 0.2%. Dillard’s’s payout ratio is currently 3.30%.

Key Headlines Impacting Dillard’s

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

• Positive Sentiment: Q1 earnings came in well above estimates at $16.04 per share versus about $10 expected, while revenue also topped forecasts, signaling better-than-anticipated profitability and demand. Dillard’s, Inc. Reports First Quarter Results
• Positive Sentiment: Comparable-store sales rose 3% and total retail sales increased 3%, showing improving traffic and stronger merchandise demand across all major categories. Dillard’s Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Positive Sentiment: Gross margin improved to 45.8% and net income jumped to $250.6 million, helped by a favorable litigation settlement and better operating leverage. Dillard’s Shares Rise After Earnings Beat Fueled by Litigation Settlement (DDS)
• Neutral Sentiment: Management opened a new store in Ohio and raised inventory slightly, but also noted higher operating expenses, which could temper margin gains if costs stay elevated. Dillard’s, Inc. Reports First Quarter Results
• Negative Sentiment: Some analysts remain cautious, arguing the strength may be temporary because results were aided by one-time litigation gains and may not fully reflect underlying retail demand. Dillard’s: Strength Is Temporary

Analyst Ratings Changes

A number of brokerages have recently issued reports on DDS. UBS Group lifted their price target on Dillard’s from $460.00 to $465.00 and gave the stock a “sell” rating in a research note on Wednesday, May 6th. Wall Street Zen lowered Dillard’s from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. JPMorgan Chase & Co. lowered their price target on Dillard’s from $524.00 to $449.00 and set an “underweight” rating on the stock in a research note on Wednesday, February 25th. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Dillard’s in a research note on Wednesday, January 21st. Finally, Telsey Advisory Group lowered their price target on Dillard’s from $700.00 to $650.00 and set a “market perform” rating on the stock in a research note on Wednesday, February 25th. Three analysts have rated the stock with a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and a consensus price target of $521.33.

Hedge Funds Weigh In On Dillard’s

Institutional investors have recently added to or reduced their stakes in the stock. Rockefeller Capital Management L.P. lifted its position in Dillard’s by 108.7% during the fourth quarter. Rockefeller Capital Management L.P. now owns 48 shares of the company’s stock worth $29,000 after buying an additional 25 shares in the last quarter. Atlas Capital Advisors Inc. purchased a new position in Dillard’s during the fourth quarter worth approximately $29,000. Quarry LP purchased a new stake in Dillard’s in the third quarter valued at $33,000. EverSource Wealth Advisors LLC raised its position in Dillard’s by 790.0% in the second quarter. EverSource Wealth Advisors LLC now owns 89 shares of the company’s stock valued at $37,000 after purchasing an additional 79 shares during the period. Finally, Global Retirement Partners LLC raised its position in Dillard’s by 6,300.0% in the fourth quarter. Global Retirement Partners LLC now owns 64 shares of the company’s stock valued at $39,000 after purchasing an additional 63 shares during the period. Hedge funds and other institutional investors own 67.15% of the company’s stock.

Dillard’s Price Performance

The company has a quick ratio of 1.31, a current ratio of 2.65 and a debt-to-equity ratio of 0.24. The company has a market cap of $8.44 billion, a PE ratio of 12.85 and a beta of 1.17. The stock has a 50-day simple moving average of $580.45 and a 200 day simple moving average of $619.96.

About Dillard’s

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.