Dillard's beats Q2 revenue, net income expectations

Overview

• Dillard's Q2 revenue rises 1% yr/yr, beating analysts' expectations, per LSEG data

• Net income beats estimates at $72.8 mln, per LSEG data

• EPS for Q2 exceeds expectations at $4.66, per LSEG data

Outlook

• Company estimates 2025 capital expenditures at $120 mln

• Company expects 2025 depreciation and amortization to be $180 mln

Result Drivers

• SALES INCREASE - Dillard's reports 1% rise in total retail sales, driven by juniors' and children's apparel and ladies' accessories and lingerie

• INVENTORY CONTROL - Ending inventory increased 2%, reflecting improved management compared to previous quarter's 6% rise

• GROSS MARGIN DECLINE - Retail gross margin decreased slightly, notably in ladies' apparel, despite moderate improvement in shoes and ladies' accessories

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy."

• Wall Street's median 12-month price target for Dillard's Inc is $310.00, about 60.6% below its August 13 closing price of $497.93

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX5G42Qq