We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's Why Dillard's Looks Poised for More Growth in 2020
Read MoreHide Full Article
Dillard’s Inc. (DDS - Free Report) has been on the growth trajectory lately backed by growth opportunities in physical stores and e-commerce. It is gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Furthermore, the company’s focus on boosting productivity as well as enhancing domestic and omni-channel capabilities should strengthen the customer base.
These factors have collectively contributed to solid share price trend in the past year. The Zacks Rank #2 (Buy) company has gained 3.5% in the past year against the industry’s decline of 35.4%.
Factors Favoring the Stock
Dillard’s offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. The company has created a niche for itself through a stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that its strategy of offering fashion-forward and trendy products acts as a catalyst for attracting more customers.
Although the department store industry is facing increased competition from specialty retailers and growing e-commerce, Dillard’s is shielded by its efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business. These will likely help it retain existing customers and attract new ones.
On the store front, the company is gaining from initiatives to enhance brand relations, and focus on in-trend categories, store remodels and increased rewards to store personnel. Moreover, its e-commerce business is catching pace with strategies like merchandise assortment enhancement and effective inventory management.
Driven by these initiatives, the company reported better-than-expected earnings results in third-quarter fiscal 2019. Results were aided by strong sequential gains in comparable sales (comps) as well as retail gross margin. Further, reduced inventory levels boosted performance.
Gross margin from retail operations rose 13 bps in the quarter mainly due to lower inventory levels. Notably, gross margin from retail stores reflected significant sequential gain versus a decline of 319 bps reported in second-quarter fiscal 2019. Merchandise inventories declined nearly 4% as of Nov 2, 2019, compared with flat inventories at the end of second-quarter fiscal 2019.
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.
Genesco Inc (GCO - Free Report) has a long-term earnings growth rate of 5%. It sports a Zacks Rank #1 at present.
Boot Barn Holdings, Inc (BOOT - Free Report) has an impressive long-term earnings growth rate of 17%. It presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Here's Why Dillard's Looks Poised for More Growth in 2020
Dillard’s Inc. (DDS - Free Report) has been on the growth trajectory lately backed by growth opportunities in physical stores and e-commerce. It is gaining from initiatives to enhance brand relations, focus on in-trend categories, store remodels and increased rewards to store personnel. Furthermore, the company’s focus on boosting productivity as well as enhancing domestic and omni-channel capabilities should strengthen the customer base.
These factors have collectively contributed to solid share price trend in the past year. The Zacks Rank #2 (Buy) company has gained 3.5% in the past year against the industry’s decline of 35.4%.
Factors Favoring the Stock
Dillard’s offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. The company has created a niche for itself through a stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service. We believe that its strategy of offering fashion-forward and trendy products acts as a catalyst for attracting more customers.
Although the department store industry is facing increased competition from specialty retailers and growing e-commerce, Dillard’s is shielded by its efforts to capture growth opportunities in brick-and-mortar stores and the e-commerce business. These will likely help it retain existing customers and attract new ones.
On the store front, the company is gaining from initiatives to enhance brand relations, and focus on in-trend categories, store remodels and increased rewards to store personnel. Moreover, its e-commerce business is catching pace with strategies like merchandise assortment enhancement and effective inventory management.
Driven by these initiatives, the company reported better-than-expected earnings results in third-quarter fiscal 2019. Results were aided by strong sequential gains in comparable sales (comps) as well as retail gross margin. Further, reduced inventory levels boosted performance.
Gross margin from retail operations rose 13 bps in the quarter mainly due to lower inventory levels. Notably, gross margin from retail stores reflected significant sequential gain versus a decline of 319 bps reported in second-quarter fiscal 2019. Merchandise inventories declined nearly 4% as of Nov 2, 2019, compared with flat inventories at the end of second-quarter fiscal 2019.
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.
Other Favorable Retails Picks
Zumiez Inc (ZUMZ - Free Report) has a long-term earnings growth rate of 12%. It currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Genesco Inc (GCO - Free Report) has a long-term earnings growth rate of 5%. It sports a Zacks Rank #1 at present.
Boot Barn Holdings, Inc (BOOT - Free Report) has an impressive long-term earnings growth rate of 17%. It presently carries a Zacks Rank #2.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>