Key Takeaways:
Dillard's Inc. (NYSE: DDS) reported first-quarter earnings of $16.04 per share, beating the Zacks Consensus Estimate by 58.3% and marking a 54% increase from a year ago.
The department store operator’s results showed continued strength, surpassing analyst expectations on both profit and sales. The sustainability of the stock's price movement will likely depend on management's commentary during the company's earnings call, according to Zacks Investment Research.
The company’s stock has underperformed the broader market this year, losing about 12.1% year-to-date compared to an 8.8% gain for the S&P 500. Ahead of the earnings release, the stock held a Zacks Rank #3 (Hold), suggesting it was expected to perform in line with the market.
Dillard's posted quarterly revenues of $1.57 billion, surpassing the Zacks Consensus Estimate and increasing from $1.53 billion in the same quarter last year. This marks the third time the company has topped consensus revenue estimates over the last four quarters. The first-quarter results also represent the fourth consecutive quarter in which Dillard's has surpassed consensus EPS estimates.
Looking ahead, the consensus EPS estimate for the upcoming quarter is $4.00 on $1.51 billion in revenues. For the current fiscal year, analysts expect earnings of $32.52 per share on $6.5 billion in revenues.
The strong performance may be supported by new wholesale relationships. Petal & Pup, a brand owned by a.k.a. Brands (NYSE: AKA), recently announced it completed its first store test shipment to Dillard's in the first quarter and is expected to go live across nine locations in the second quarter.
The significant earnings beat signals underlying strength in the business, though the company did not disclose specific guidance in its initial announcement. Investors will be closely watching for management’s outlook on future demand and profit margins during the upcoming earnings call.
This article is for informational purposes only and does not constitute investment advice.
