Dillard’s Inc. (DDS), the leading apparel and home-furnishing retailer in the United States, reported a growth of 9.0% in same-store sales for the four weeks ended July 30, 2011. Merchandise sales for the period shot up 8.0% to $458.5 million compared with $425.2 million in the four-week period ended July 31, 2010.
Sales in the Central region were better than the average total company sales, while it was soft in the Western region and remained consistent in the Eastern region. Category wise, sales in the men’s apparel and accessories categories were substantially above trend, while sales in the home and furniture category were substantially below the trend.
Comparable store sales for the thirteen-week period ended July 30, 2011 increased by 6% while total sales increased by 5% to $1,424.6 million from $1,358.1 million in the prior-year period. However, for twenty-six week period ended on July 30, 2011, comparable store sales were up 4% and total sales increased by 3% to 2,885.5 million, compared with $2,790.5 million in the four-week period ended July 31, 2010.
Kohl’s Corporation (KSS), which competes with Dillard’s, reported a negative 4.6% growth in July same-store sales, with total sales decreasing 2.9%. Another peer, J.C. Penney Company Inc. (JCP), reported an increase of 3.3% in same-store sales with total sales falling 1% in July 2011. Same-store sales of another competitor Macy’s Inc. (M) increased 5% for July while total sales climbed 5.7%.
Based in Little Rock, Arkansas, Dillard’s Inc. is a large departmental store chain in the United States featuring fashion apparel and home furnishings. The company currently operates 294 stores and 14 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 of the US.
The company’s primary product categories include: women’s and junior’s apparel; shoes; accessories and lingerie; men’s clothing and accessories; cosmetics; home; and children’s clothing. Its merchandise mix consists of both branded and private-label items.
Dillard’s shares maintain a Zacks #1 Rank, which translates into a short-term ‘Strong Buy’ rating. Our long-term recommendation on the stock remains ‘Outperform’.
