U.S. Markets open in 3 hrs 18 mins

Dillard's to Debut Carvela Collection This Holiday Season

Zacks Equity Research

Dillard's, Inc. DDS, in collaboration with the UK’s iconic footwear brand — Kurt Geiger, recently announced that it will launch the latter’s Carvela collection across its 75 stores in the United States and online. This leading departmental store retailer will exclusively introduce Carvela’s mainline footwear this December to make most of the busiest holiday selling period.

Notably, this latest launch will be backed by a special campaign for Dillard’s. The company will showcase Carvela’s collection including trendy heels, sneakers and sandals at prices ranging from $85-$150. Designed in London, Carvela offers top-quality products made of finest leathers making it an ideal addition to Dillard’s footwear business.

We note that Dillard’s is a leading player among fashion apparel, cosmetics and home furnishing retailers. The company offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. In fact, it has created a niche for itself through a stringent focus on offering fashionable products to customers and adding value through exceptional customer care services. We believe that the company’s strategy of offering fashion-forward and trendy products will lure attract more customers.

Moreover, Dillard’s efforts to capture growth opportunities in brick-and-mortar stores and e-commerce business are likely to help it expand the customer base. On the store-front, the company is gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel.

On the e-commerce front, the business has been catching pace with strategies like enhancement of merchandise assortments and effective inventory management. We expect the company 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.

Price Performance

Despite these positives, Dillard’s has lost 17.4% in the past six months compared with the industry’s 29.8% fall.

Decline in the share price can be mainly attributed to this Zacks Rank #5 (Strong Sell) company’s dismal second-quarter fiscal 2019 performance. Results were impacted by higher markdowns and soft margins.

3 Better-Ranked Retail Stocks

Boot Barn Holdings, Inc. BOOT has an impressive long-term earnings growth rate of 15% and a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zumiez Inc. ZUMZ has a long-term earnings growth rate of 12% and a Zacks Rank of 1.

Fossil Group, Inc. FOSL delivered positive earnings surprise of 79% in the last four quarters. The stock currently has a Zacks Rank #2 (Buy).

Just Released: Zacks’ 7 Best Stocks for Today

Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.6% per year.

These 7 were selected because of their superior potential for immediate breakout.

See these time-sensitive tickers 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
 
Fossil Group, Inc. (FOSL) : Free Stock Analysis Report
 
Zumiez Inc. (ZUMZ) : Free Stock Analysis Report
 
Dillard's, Inc. (DDS) : Free Stock Analysis Report
 
Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.