Dillard’s Inc. (DDS), the leading apparel and home furnishing retailer in the United States reported an increase of 6% in same-store sales for the four-week period ended January 29, 2011. Results of the month compared favorably with same store sales declining 5% for the four- week period ended January 30, 2010.
Merchandise sales for the period increased 6% to $376.0 million compared with a decline of 6% for the four-week period ended January 30, 2010. Region-wise, sales trend was above average in the Central and Eastern region but below average in the Western region. Category-wise, sales in the home and furniture category were substantially above trend for the four-week period ended January 29, 2011.
Merchandise as well as same store sales has improved significantly from January 2010, primarily reflecting sturdy sales in the youth and teen categories.
Dillard’s posted earnings of 22 cents a share for the third-quarter 2010 surprisingly outpacing the Zacks Consensus Estimate of 6 cents and also the prior-year quarter’s loss of 3 cents a share. The increase was primarily attributable to good inventory management and reduction in selling, administrative and general expenses.
The company’s top line, i.e. net sales, inched down 1% to $1,344.1 million, which fell short of the Zacks Consensus Estimate of $1,361.0 million. However, comparable store sales inched up 1% to $1,321.0 million compared with $1,316.0 million in the year-ago quarter.
Kohl’s Corporation (KSS), which competes with Dillard’s, reported January stores sales increase of 1.4%, with total sales climbing 3.4%. Macy’s Inc. (M) also reported its January same store sales increase of 2.6% while total sales jumped 4.6%. However, same store sales of another peer J.C. Penney Company Inc. (JCP) for the month of January, 2011 decreased 1.2% with total sales plummeting 3.9%.
The Zacks Consensus Estimate for fourth-quarter 2010 is $1.30 per share. For full-year 2010 and 2011, the Zacks Consensus Estimates are $2.37 and $2.59 per share, respectively.
Based in Little Rock, Arkansas, Dillard’s Inc. is a large departmental store chain, featuring fashion apparel and home furnishings in the United States. The company currently operates 306 stores and 9 clearance centers across 29 states, all under the Dillard’s brand name. Dillard’s Inc.’s stores are mainly located in the Southwest, Southeast and Midwest regions in the US.
Dillard’s shares maintain a Zacks #2 Rank, which translates into a short-term Buy rating. Our long-term recommendation on the stock remains Outperform.
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