Time New York: Sat 01 Oct 18:19 pm  |  Save 15% on H&R Block Online

  
caticonslite_bm_alt

Can Dillard’s (DDS) Growth Initiatives Take it Higher?

Zacks

With persistent focus on increasing productivity, developing a leading omni-channel platform and enhancing its domestic operations, Dillard's Inc. DDS is well positioned to sustain its growth momentum.

As a leading player among fashion apparel, cosmetics and home furnishing retailers, Dillard’s offers a broad array of merchandise at its stores. These stores feature products from both national and exclusive brands. Also, the company has created a niche for itself through its stringent focus on offering fashionable products and adding value through exceptional customer care service. We believe this strategy will act as a catalyst for attracting more customers, leading to top- and bottom-line growth.

This departmental store chain is likely to gain from better brand relations, focus on in-trend categories, store remodels and rewarding store personnel. Moreover, Dillard’s strategies to boost growth across its eCommerce business include improving merchandise assortments and effective inventory management.

Despite the aforementioned positives, soft economic recovery and stiff competition in the retail merchandise space may prove to be hurdles for the company. While Dillard’s earnings and sales outpaced estimates in the second quarter, its fiscal 2016 outlook indicates significant cost pressures, which might hurt both margins and the bottom line.

DOLLAR TREE INC Price, Consensus and EPS Surprise

DOLLAR TREE INC Price, Consensus and EPS Surprise | DOLLAR TREE INC Quote


Moreover, the Zacks Consensus Estimate of $5.83 and $5.70 for fiscal 2016 and fiscal 2017, has decreased 4 cents and 6 cents, respectively, over the past 60 days.

Zacks Rank

Dillard’s currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the retail space include Macy's, Inc. M, J. C. Penney Company, Inc. JCP and American Eagle Outfitters, Inc. AEO, all carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

To read this article on Zacks.com click here.
<-- You can share this post with your network,
or give us your opinion and leave a comment.
Be sure to check our RSS feeds for updates.