Dillard’s Inc. (DDS – Free Report) stock has gained 13.2% in the past year, outperforming the broader industry’s 8.3% decline. However, it has underperformed the Retail-Wholesale sector’s growth of 30.8% and the S&P 500’s rally of 26.1%.
DDS Stock’s One-Year Price Performance
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At the current price of $431.74, the DDS stock trades at a discount of 9.4% to its 52-week high of $476.48. The current stock price reflects a 31.6% premium from its 52-week low mark.
DDS trades above its 50 and 200-day moving averages, signaling strong upward momentum and price stability. This technical strength indicates positive market sentiment and confidence in the company’s financial health and prospects.
DDS Stock Trades Above 50-Day & 200-Day Moving Averages
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What’s Driving Dillard’s Stock Momentum?
The company has created a niche for itself through a stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that its strategy of providing fashion-forward and trendy products attracts more customers.
Dillard’s has carved a niche in the department store industry through a series of merchandising initiatives. The company’s latest step in this direction is the limited-edition collaboration with influencer stylist Lilly Sisto for its Gianni Bini store label.
DDS is actively expanding its customer base through strategic initiatives in physical stores and e-commerce. Additionally, the company’s efficient inventory management efforts bode well.
Dillard’s is benefiting from its efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business, aiding in retaining existing customers and attracting new ones. On the store front, the company is gaining from initiatives to enhance brand relations, and focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands have been gaining market share.
The company’s e-commerce business is catching pace with strategies like the enhancement of merchandise assortments. We expect it to gain from its focus on increasing productivity at existing stores, developing a leading omni-channel platform and enhancing domestic operations in the years ahead.
DDS’s Estimate Trend
The Zacks Consensus Estimate for DDS’s fiscal 2024 and 2025 earnings per share was unchanged in the last 30 days. For fiscal 2024, the Zacks Consensus Estimate for DDS sales and EPS implies 5.2% and 21.9% year-over-year declines, respectively. The consensus mark for fiscal 2025 sales indicates 2% year-over-year growth.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
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Can Ongoing Headwinds Derail DDS Stock?
Dillard’s continues to witness the effects of a challenging retail environment due to the cautious buying behavior of consumers for a while now. This impacted the company’s sales and comparable-store sales (comps) in third-quarter fiscal 2024. Its comps declined 4% year over year, whereas total retail sales fell 3.8%. Retail sales were affected by the challenging sales environment in the quarter.
DDS’s Investment Potential
A focus on inventory management, store and e-commerce development, and offering trendy merchandise have positioned Dillard’s strongly in the competitive retail landscape for long-term growth. These efforts highlight the company’s resilience and adaptability in a dynamic market, making this Zacks Rank #1 (Strong Buy) stock an attractive investment option.
3 Other Promising Stocks
Some other top-ranked stocks in the Retail-Wholesale space are Tapestry (TPR – Free Report) , Abercrombie & Fitch Co. (ANF – Free Report) and The Gap Inc. (GAP – Free Report) .
Tapestry is a designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year earnings and sales indicates growth of 1.4% and 7.7%, respectively, from the previous year’s reported figures. Tapestry has a trailing four-quarter average earnings surprise of 11.3%.
Abercrombie is a specialty retailer of premium, high-quality casual apparel. The company currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for the company’s current fiscal-year sales and earnings implies growth of 15% and 69.3%, respectively, from the previous year’s reported number. ANF has a trailing four-quarter average earnings surprise of 14.8%.
Gap is a premier international specialty retailer offering diverse clothing, accessories and personal care products. It currently sports a Zacks Rank #1.
The Zacks Consensus Estimate for Gap’s current fiscal-year earnings and sales calls for growth of 0.8% and 41.3%, respectively, from the previous year’s reported figures. GAP has a trailing four-quarter average earnings surprise of 101.2%.
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