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The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.5 billion indicates a 2.5% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $5.91 per share, implying a 25.9% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 19.9%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 40.3%, on average.
Dillard's has been gaining from better inventory management initiatives and strong consumer demand. The company’s strategic focus on inventory management, store and e-commerce development, and offering trendy merchandise has positioned it strongly in the competitive retail landscape. It exited the fiscal second quarter with lower year-over-year inventory levels, which is expected to have aided the top line in the to-be-reported quarter.
The company’s efforts to capture growth opportunities in brick-and-mortar stores and e-commerce have been key drivers. It has been focused on enhancing brand relationships, remodeling stores and optimizing its activewear segment. Gains from these initiatives are likely to have widened the customer base and boosted the company's overall sales in the fiscal second quarter.
On the storefront, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands are expected to have gained market share in the to-be-reported quarter.
Also, the e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have gained from its focus on increasing productivity at existing stores, improving the omni-channel platform and enhancing domestic operations.
However, Dillard’s has continued to witness the effects of a challenging retail environment due to the cautious buying behavior of consumers for a while now. This is likely to have impacted sales and comparable-store sales (comps) and led to higher operating expenses in the fiscal second quarter. Additionally, higher payroll and payroll-related expenses are likely to have dented the bottom line performance in the fiscal second quarter.
Our model predicts a comps decline of 1.9% for the fiscal second quarter due to a challenging retail environment. Retail sales are expected to dip 2.4% year over year in the fiscal second quarter.
We anticipate the operating margin to decline 270 basis points (bps) for the fiscal second quarter. Our model predicts SG&A expenses to increase 2.3% year over year in the second quarter of fiscal 2024.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +9.09% and currently sports a Zacks Rank #1. ANF is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, suggesting 15.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s fiscal second-quarter earnings is pegged at $2.11, suggesting 91.8% growth from the year-ago quarter. The consensus mark has moved up 1.4% in the past 30 days.
Target (TGT - Free Report) presently has an Earnings ESP of +3.61% and a Zacks Rank #2. TGT is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.2 billion, suggesting a 1.8% rise from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for TGT’s fiscal second-quarter earnings is pegged at $2.18, implying year-over-year growth of 21.1%. The consensus mark has moved up by a penny in the past seven days.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +5.62% and a Zacks Rank #2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.4 million, indicating 11% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Burlington Stores’ fiscal second-quarter earnings is pegged at 93 cents, suggesting 55% growth from that reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
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Can Dillard's (DDS) Q2 Earnings Beat Amid Retail Challenges?
Dillard’s, Inc. (DDS - Free Report) is expected to register year-over-year top and bottom-line declines when it reports second-quarter fiscal 2024 numbers.
The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.5 billion indicates a 2.5% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal second-quarter earnings is pegged at $5.91 per share, implying a 25.9% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 19.9%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 40.3%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Key Factors to Note
Dillard's has been gaining from better inventory management initiatives and strong consumer demand. The company’s strategic focus on inventory management, store and e-commerce development, and offering trendy merchandise has positioned it strongly in the competitive retail landscape. It exited the fiscal second quarter with lower year-over-year inventory levels, which is expected to have aided the top line in the to-be-reported quarter.
The company’s efforts to capture growth opportunities in brick-and-mortar stores and e-commerce have been key drivers. It has been focused on enhancing brand relationships, remodeling stores and optimizing its activewear segment. Gains from these initiatives are likely to have widened the customer base and boosted the company's overall sales in the fiscal second quarter.
On the storefront, DDS has been gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Its activewear brands are expected to have gained market share in the to-be-reported quarter.
Also, the e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have gained from its focus on increasing productivity at existing stores, improving the omni-channel platform and enhancing domestic operations.
However, Dillard’s has continued to witness the effects of a challenging retail environment due to the cautious buying behavior of consumers for a while now. This is likely to have impacted sales and comparable-store sales (comps) and led to higher operating expenses in the fiscal second quarter. Additionally, higher payroll and payroll-related expenses are likely to have dented the bottom line performance in the fiscal second quarter.
Our model predicts a comps decline of 1.9% for the fiscal second quarter due to a challenging retail environment. Retail sales are expected to dip 2.4% year over year in the fiscal second quarter.
We anticipate the operating margin to decline 270 basis points (bps) for the fiscal second quarter. Our model predicts SG&A expenses to increase 2.3% year over year in the second quarter of fiscal 2024.
What the Zacks Model Suggests
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of 0.00% and a Zacks Rank #3.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat.
Abercrombie & Fitch (ANF - Free Report) has an Earnings ESP of +9.09% and currently sports a Zacks Rank #1. ANF is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $1.08 billion, suggesting 15.7% growth from the figure reported in the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Abercrombie’s fiscal second-quarter earnings is pegged at $2.11, suggesting 91.8% growth from the year-ago quarter. The consensus mark has moved up 1.4% in the past 30 days.
Target (TGT - Free Report) presently has an Earnings ESP of +3.61% and a Zacks Rank #2. TGT is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $25.2 billion, suggesting a 1.8% rise from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for TGT’s fiscal second-quarter earnings is pegged at $2.18, implying year-over-year growth of 21.1%. The consensus mark has moved up by a penny in the past seven days.
Burlington Stores (BURL - Free Report) currently has an Earnings ESP of +5.62% and a Zacks Rank #2. The company is likely to register top and bottom-line growth when it reports second-quarter fiscal 2024. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.4 million, indicating 11% growth from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for Burlington Stores’ fiscal second-quarter earnings is pegged at 93 cents, suggesting 55% growth from that reported in the year-ago quarter. The consensus mark has moved up by a penny in the past 30 days.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.