QUOTE AND NEWS
Reuters  Jul 2  Comment 
CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Ltd, said on Wednesday it had acquired U.S. dental company DDS LAB LLC on undisclosed terms.
DailyFinance  Jun 23  Comment 
RICHMOND, BRITISH COLUMBIA -- (Marketwired) -- 06/23/14 -- DDS Wireless International Inc. (TSX:DD) ("DDS Wireless" or the "Company"), a world leader in providing wireless data solutions for fleet management, which it has been providing for more...
Market Intelligence Center  Jun 19  Comment 
Dillard's Inc. (DDS) is an excellent choice for either a diagonal spread or a covered call expiring in Aug. '14 at the $115.00 level according to MarketIntelligenceCenter.com’s patented algorithms.A covered call on Dillards for a net debit of...
Market Intelligence Center  Jun 9  Comment 
Dillard's Inc. (DDS) traded between $115.38 and $119.02 before closing at $118.78 Friday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms. The computer program that picks...
Market Intelligence Center  May 28  Comment 
After closing Tuesday at $112.58, Dillard's Inc. (DDS) presents an attractive opportunity to get a 4.68% return in just 80 days, which is an annualized return of 21.36% (for comparison purposes only). To enter this trade, sell one Aug. '14 $110.00...
Market Intelligence Center  May 27  Comment 
Friday’s trading in Dillard's Inc. (DDS) gives options traders an opportunity for a 9.89% return. By selling the Aug. '14 $105.00 call and buying the Jan. '15 call at the $65.00 level for a net debit of $36.40, traders will book a profit as long...
TheStreet.com  May 19  Comment 
NEW YORK (TheStreet) -- Dillard's  stock has had its price target increased to $105 from $93, Credit Suisse said Monday. The firm said the revision was dependent upon the company's continued share repurchases.  Must Read: Warren Buffett's 25...
TheStreet.com  May 16  Comment 
NEW YORK (TheStreet) -- Dillard's  stock has had its price target increased to $105 from $93, Credit Suisse said Monday. The firm said the revision was dependent upon the company's continued share repurchases.  Must Read: Warren Buffett's 25...
StreetInsider.com  May 16  Comment 
52-Week High: Nordstrom Inc. (NYSE: JWN) $69.78. Nordstrom higher Friday after the company posted Q1 EPS of $0.72, $0.04 better than the analyst estimate of $0.68. Revenue for the quarter came in at $2.84 billion versus the consensus estimate of...
TheStreet.com  May 16  Comment 
NEW YORK (TheStreet) -- Dillard's was gaining 14.5% to $110.62 Friday after beating analysts' expectations for earnings in the first quarter. For the first quarter Dillard's reported EPS of $2.47 a share, beating the Capital IQ Consensus...




 

DDS most likely refers to Dillard's. For other possible associations, see DDS (disambiguation).

Dillard’s (NYSE:DDS) operates a chain of department stores across the U.S.Dillard's targets middle- and upper-class consumers with premium-priced branded and private label clothing, cosmetics, accessories and home goods.

Dillard's offers its own exclusive and private label brands alongside merchandise from branded manufacturers, which represents approximately a quarter of total sales. These brands can drive higher profit margins, so Dillard's is introducing new lines to grow the penetration of these private label products. Growing these brands is key to Dillard's competitiveness with its larger competitors, such as Macy's Inc. (M) and J.C. Penney (JCP). However, Dillard's lags behind larger and smaller competitors by the fact that all of the company's stores are located in malls whereas those of its competitors have several off-mall locations -- Dillard's risks losing market share as more consumers shift to shopping at off-mall locations.

Company Overview

Dillard’s operates mall-based department stores and an e-commerce site in the United States that sell high-priced branded and private label merchandise.

Dillard's stores and e-commerce site carry a variety of clothing, accessories and home goods. The company's merchandise offerings include products from premium branded manufacturers, such as Guess? (GES) and Polo Ralph Lauren (RL), in addition to exclusive and private label brands that Dillard's wholly owns or co-owns with outside partners, such as the Roundtree & Yorke and Antonio Melani brands. Dillard's primary customers are women, typically in the middle- and upper-class.

Business Segments

Dillard's operates under six different business segments:

  • Cosmetics (15% of net sales)
  • Ladies’ apparel and accessories (36% of net sales)
  • Juniors’ and children’s apparel (8% of net sales)
  • Men’s apparel and accessories (17% of net sales)
  • Shoes (14% of net sales)
  • Home and furniture (7% of net sales)

The company also has a small construction segment which accounts for 3% of net sales.

Business Growth

FY2010 (ended January 30, 2011)[1]

  • Net sales increased by less than 1% to $6.1 billion.
  • Net income increased by 162% to $179 million.

Trends and Forces

Growing Dillard's Exclusive and Private Brands

Department stores are increasingly seeking to distinguish themselves and earn higher profit margins by offering exclusive brands and private label brands. Exclusive brands are brands marketed under the wholesaler's name that are sold only in a particular chain; one exclusive brand at Dillard's is the Antonio Melani line that can only be purchased online or at Dillard's stores. Private label brands are produced by wholesalers, but sold under the brand name of the retailer. Exclusive brands such as Gianni Bini and Roundtree & Yourke, can help draw customers into Dillard's stores, as the products can only be found at Dillard's. Dillard's own private label products are typically priced lower than branded merchandise, but have a higher profit margin for Dillard's as the retailer is able to receive the good at a lower cost by avoiding branded manufacturers.

Department Store Migration to Off-Mall Locations

As Dillard's is far behind its competitors with regards to this trend, it is positioned to lose market share from its competitors as consumers continue to shop more often in off-mall locations, refraining from frequenting malls and subsequently avoiding Dillard's stores.

Since the 2000's began, consumers have shifted their shopping habits to strip-malls and shopping centers rather than traditional malls. Department stores are traditionally attached to malls, but have begun moving out into shopping centers and other "off-mall" locations to follow the changing customer's shopping patterns. Off-mall stores are cheaper to operate than traditional mall-based department stores, due to smaller real estate costs and less in-store employees, and offer consumers convenience by serving as a one stop shop. Dillard's is positioned to lose from this trend as none of their stores are in off-mall locations.

Competition

Dillard's is one of the smallest national department store retailers. It competes primarily against other department stores, but also is facing increasing competition from discounters and mass merchandisers like Target (TGT) and Wal-Mart (WMT) as these companies grow their clothing and home goods categories.

Dillard's primary competitors are moderate- and higher-priced department stores, J.C. Penney (JCP), Macy's Inc. (M) and Sears Holdings (SHLD).

References

  1. DDS 2010 10-K "Selected Financial Data" pg. 13
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