|Bid||54.50 x 900|
|Ask||55.96 x 800|
|Day's Range||47.95 - 55.80|
|52 Week Range||47.95 - 86.71|
|Beta (3Y Monthly)||1.18|
|PE Ratio (TTM)||11.21|
|Earnings Date||Nov 12, 2019 - Nov 18, 2019|
|Forward Dividend & Yield||0.40 (0.71%)|
|1y Target Est||55.20|
Macy's, Dillard's, and J. C. Penney posted bearish second quarter results that signal the resumption of the group's historic downtrend.
JPMorgan analysts noticed that the earnings release for Dillard's Inc. second-quarter earnings didn't include a comment from management, which could suggest a tough road ahead. Dillard's stock slipped 1.8% in Friday trading after the department store retailer reported earnings and sales that missed expectations. "Importantly, the press release included no commentary from management on 2Q business results versus 2Q of last year when CEO Dillard cited '[an] encouraging year-to-date improvement as we head into the important back half of the year,'" the note said. "Looking forward, we note Dillard's multi-year comp comparisons in 3Q to 4Q stand 540 basis points more challenging on average relative to 1H." JP Morgan rates Dillard's underweight with a $37 price target, slashed from $54. Analysts say the company has shifted its merchandise to occupy a space between Macy's Inc. and Nordstrom Inc. that caters to a higher-income target. And Dillard's has become more significant with the bankruptcies and store closings in the retail sector. But declining mall traffic and lower e-commerce business will restrict top-line growth. Dillard's stock is down 8.7% for the year to date while the S&P 500 index has gained nearly 15%.
Department store chain Dillard’s stock tumbled 16% in premarket trading after missing sales estimates and widening losses in the second quarter
Shares of department store chain Dillard's plunge after the company posts a quarterly loss that missed analysts' estimates amid an ongoing decline in same-store sales.
Dillard's (DDS) delivered earnings and revenue surprises of -163.64% and -1.22%, respectively, for the quarter ended July 2019. Do the numbers hold clues to what lies ahead for the stock?
Dillard's Inc. shares fell roughly 12% in the extended session Thursday after the company missed consensus revenue estimates. The company reported a fiscal-quarter net loss of $40.7 million, or $1.59 a share, compared with a loss of $2.9 million, or 10 cents a share, in the year-ago period. Revenue fell to $1.43 billion from $1.47 billion in the year-ago period. Analysts surveyed by FactSet had estimated sales of $1.48 billion. For the fiscal third quarter, analysts model revenue of $1.43 billion. Dillard's stock has fallen 6.2% this year, with the S&P 500 index rising 13.3%.
Dillard’s, Inc. announced operating results for the 13 and 26 weeks ended August 3, 2019. This release contains certain forward-looking statements.
Dillard's (DDS) is likely to continue witnessing a year-over-year decline in the bottom line when it reports second-quarter fiscal 2019 numbers.
Dillard's (DDS) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
In contrast to last year, Greenlight Capital’s performance this year has been improving. In 2018, GLRE fell 34%, vastly underperforming the markets.
Hedge fund Greenlight Capital has added new positions in Dillard's, Inc. (NYSE: DDS ), Chemours Co (NYSE: CC ) and Scientific Games Corp (NASDAQ: SGMS ), president David Einhorn said in his second-quarter ...
(Bloomberg) -- Hedge fund manager David Einhorn says that he’s shorting U.S. corporate debt as protections for creditors deteriorate.His firm Greenlight Capital is wagering against both junk and investment grade debt, according to an investor letter seen by Bloomberg. The macro position will provide a hedge for the firm’s bullish equity positions in addition to being an attractive, standalone bet, the letter said. The cost of taking such a position is “quite low” as credit spreads tighten, according to the letter.“Rating agencies have been complacent and allowed debt/Ebitda and debt/equity ratios to deteriorate without a corresponding reduction in credit ratings,” Einhorn said in the July 25 letter. “Meanwhile, we are a decade into an economic recovery and there are signs the economy may be slowing.”Credit graders have come under scrutiny by investors in recent years for letting companies load up on debt to fund acquisitions with minimal reductions to their credit ratings. A 2018 Bloomberg analysis of the merger boom found that more than half of companies making acquisitions pushed their debt ratios to levels typically associated with junk-rated companies but were allowed to keep investment-grade ranks.Einhorn is joining several other prominent investors that have warned against froth in corporate debt. Credit market risk is at an all-time high, Pacific Investment Management Co.’s Scott Mather said in May and JPMorgan Asset Management’s Bob Michele recommended last month that investors sell the highs in corporate credit and buy government debt instead.Companies including Anheuser-Busch InBev NV have now come under pressure from the ratings companies for failing to swiftly cut their debt loads after acquisitions. Years of easy-money policies from central banks have spurred companies to borrow cheaply in the debt markets and pushed the amount of debt rated in the BBB range -- the lowest investment-grade tier-- to $2.8 trillion, more than half the U.S. high-grade universe.Despite signs that debt metrics have deteriorated, investors have continued to load up on corporate credit. Risk premiums on investment-grade bonds sit at just 1.09% over Treasuries, near the lowest levels since the financial crisis. An index of junk bonds hit an all-time high Thursday, and the notes have returned more than 10% this year, prompting some investors to warn it’s time to take profits. Corporate earnings are expected to soften and economic growth may slow, undermining the outlook for credit in the second half.After losing 34% in 2018, the manager has rejiggered his portfolio to take fewer, more-concentrated bets. The main fund at Greenlight is up 18% for the year through June -- the best start to a year for his value-investing strategy since 2009. It’s a welcome vindication for Einhorn, who has seen his firm’s assets collapse from their $12 billion peak to about $2.5 billion toward the start of the year.Other highlights from the letter:In the second quarter, Greenlight started positions in chemical manufacturer Chemours Co., retailer Dillard’s Inc. and gaming equipment company Scientific Games Corp.Chemours fluoroproducts business has high margins and favorable growth prospects and is worth more than the entire current value of the company, the letter said. Concerns over a bear case that Chemours has new liabilities related to firefighting foams are off base. Liabilities could run into the tens of millions of dollars, not billions of dollars as some claim, Greenlight said. This isn’t Greenlight’s first time investing in Chemours. The stock was its biggest winner between 2016 and 2017.While many retailers are going out of business, Dillard’s six-quarter run of positive same store sales, low leverage and strong liquidity puts it in a better positionScientific Games’s publicly listed online social gaming business, SciPlay Corp., has research and development expenses that are generally lower than its peers, while its margins are also higher than competitors. While consensus expectations are that SciPlay’s earnings per share will “grow at an annual rate of 23% through 2022, the shares trade at only 12x the 2020 estimate,” the letter said.(Adds Greenlight stock positions at end of story.)\--With assistance from Joshua Fineman and Hema Parmar.To contact the reporters on this story: Katia Porzecanski in New York at firstname.lastname@example.org;Claire Boston in New York at email@example.comTo contact the editors responsible for this story: Alan Mirabella at firstname.lastname@example.org, Nikolaj Gammeltoft, Josh FriedmanFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Profitability has been sinking at the regional department store chain, and Dillard's stock is surprisingly expensive to boot.
Today we are going to look at Dillard's, Inc. (NYSE:DDS) to see whether it might be an attractive investment prospect...
The Dillard’s at Cary Towne Center is closing. Higbee LANCOMS, which does business as Dillard’s, notified the state of North Carolina Friday that it was closing its 1105 Walnut Street operation in Cary, a move that impacts 84 employees. The news comes as the shopping center’s owners, Turnbridge Equities and Denali Properties, are in the midst of planning a massive revamp at Cary Towne Center.
Recent promotional data indicates a stabilization in markdown trends at Dillard's, Inc. (NYSE: DDS ), with promotions during the July 4 holiday being similar to last year’s levels, according to Wedbush. ...
New Jersey-headquartered CBD For Life announced Thursday further expansion of its retail presence through a partnership with Dillard’s Inc (NYSE: DDS ). CBD For Life is a subsidiary of iAnthus Capital ...
Shares of clothing chain Abercrombie & Fitch and department store chain Dillard's both climb higher after receiving upgrades from Wedbush Securities.
I was wrong on Target (NYSE:TGT). I long thought Target stock, though it looked cheap, was too expensive. The company's efforts to build out its omnichannel capabilities, I thought, would consistently pressure earnings. Add to that retail worries more broadly and TGT stock looked like a value trap.Source: Mike Mozart via Flickr (Modified)But Target has proved me -- and other skeptics -- wrong. Earnings did take a hit for a couple of years, as I detailed in January. But Target's blowout fourth-quarter report showed the company was about to reap the fruits of its omnichannel investments.Meanwhile, right at 15 times the midpoint of fiscal 2019 (ending January 2020) earnings-per-share (EPS) guidance, Target stock still isn't terribly expensive. So, another year of growth (and maybe a bit of multiple expansion), could get TGT stock from the current $88 to over $100.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat said, there are some potential potholes on the way to triple-digits. And investors would do well to mind the risks here as well. The Case for Target StockTarget's path to becoming a true omnichannel retailer hasn't been quick -- or easy. Target stock has tumbled twice as investors lost patience. In 2017, TGT hit a five-year low below $50. The stock tumbled again late last year, nearing $60 before rebounding quickly. * 7 Retail Stocks to Buy That Are Down in 2019 One reason has been that Target's earnings growth stalled out. Operating income declined. Margins compressed. Adjusted EPS was $4.69 in fiscal 2015, and $4.17 in fiscal 2017. It grew sharply in fiscal 2018, to $5.50, but a lower tax rate and a lower pace of omnichannel spend both contributed.That spend is behind the company now -- and the results seem strong. Target is guiding for 7-12% EPS growth this year, with analysts aiming a bit above the midpoint. The Street sees another 6% increase in earnings per share in fiscal 2020.Both may be conservative if recent performance holds. Comparable sales rose 5.3% in Q4 and 4.8% in Q1. That type of growth leverages day-to-day store spend -- and can move EPS much higher in a hurry. It doesn't take that much outperformance for Target to post FY2020 EPS around $7, against current expectations of $6.31. Apply a slightly higher 16-17 P/E multiple to $7 in FY2020 EPS and Target stock not only clears $100, it could threaten $120. The Risks to TGT StockOf course, the flipside is true as well: it doesn't take that much in the way of disappointment to undercut TGT stock, particularly after a sizzling 33% gain so far this year. And I'm not quite convinced Target completely is out of the woods just yet.After all, omnichannel retailing is tough. Walmart (NYSE:WMT) is finding that out, with reported losses of some $1 billion a year from its e-commerce operations. Giving consumers exactly what they want is expensive work -- and it may be more expensive than even Target realizes at the moment.There's also a worry that comparisons are going to get tougher. FY2019 comparable growth of 5% looks hugely impressive -- but Target only grew same-store and digital sales 1.3% the year before. The company faces a much tougher hurdle over the next three quarters, and into fiscal 2020. Q1 results ease that worry a bit -- a big reason why Target stock jumped on the report and kept climbing -- but Target needs to keep the momentum going.There's also the cyclical aspect of the business. Q4 and Q1 results were strong -- but retailers generally should do well in a strong economy. Cyclical stocks elsewhere are seeing pressure; if consumer purses tighten, Target could well feel the pressure.And, in either scenario, this can get ugly in a hurry. Operating margins are thin: just 5.5% in fiscal 2018, and likely modestly higher this year. It doesn't take much in the way of labor pressure, rising fulfillment costs, or further price reductions to move those margins down by 50 bps or so -- a nearly 10% impact. Cut Target's earnings by 10% or more and lower the earnings multiple, and suddenly TGT stock is heading back toward the $60s. The BetHence, the case for Target seems to come down to execution. Can the company become a legitimate competitor to Walmart and Amazon (NASDAQ:AMZN) at the top of retail? If it does, it doesn't only help earnings. It means investors value TGT closer to WMT and not in line with department stores like Kohl's (NYSE:KSS) and Dillard's (NYSE:DDS). That keeps alive the combination of earnings growth and multiple expansion that can make big gains possible. * 7 A-Rated Stocks to Buy for the Rest of 2019 But the rising Target stock price also makes the bet a little less compelling. At lower prices, Target stock offered big upside if the skeptics (like myself) were wrong. That upside, with TGT near all-time highs, is much thinner. Even a run to $100, including the 3%+ dividend yield, only suggests about 16% total return.And to get that return, Target has to stay on point. At this juncture, I wouldn't bet against it -- but if I bet on it, I'd be watching awfully closely.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 A-Rated Stocks to Buy for the Rest of 2019 * 7 Education Stocks to Buy for the Future of Academia * 5 Stocks to Buy as You Rebalance Your Portfolio The post Target Stock Can Clear $100 -- But Mind the Risks appeared first on InvestorPlace.