QUOTE AND NEWS
Market Intelligence Center  Oct 24  Comment 
Dillard's Inc. (DDS) traded between $106.34 and $109.02 before closing at $108.05 Thursday and presents some attractive trading opportunities today according to MarketIntelligenceCenter.com's patented algorithms. The computer program that picks...
Market Intelligence Center  Oct 23  Comment 
A covered call identified by MarketIntelligececenter.com's patented algorithms on Dillard's Inc. (DDS) could yield about 7.09% (30.08% annualized, for comparison purposes only) in 86 days. Pair a long position in the stock with the Jan. '15...
Market Intelligence Center  Sep 22  Comment 
After Friday’s trading in Dillard's Inc. (DDS) MarketIntelligenceCenter.com's patented algorithms uncovered a trade that offers a 5.25% return or 31.44% on an annualized basis (for comparison purposes only), while providing 5.78% downside...
SeekingAlpha  Sep 19  Comment 
By George Hanley: Regional department store operator Dillard's (NYSE: DDS) stay-small operating strategy has been working well for the company in contrast to the operating troubles that continue to plague larger players in the sector like J.C....
Benzinga  Sep 5  Comment 
In a report published Friday, Bank of America analyst Heather Balsky reiterated a Buy rating and $130.00 price target on Dillard's, Inc. (NYSE: DDS). In the report, Bank of America noted, “Our rating on Dillard's is a Buy. We think Dillard's...
StreetInsider.com  Aug 22  Comment 
Visit StreetInsider.com at http://www.streetinsider.com/Management+Changes/Dillard%27s%2C+Inc.+%28DDS%29+CFO+Freeman+to+Retire/9776485.html for the full story.
TheStreet.com  Aug 15  Comment 
NEW YORK (TheStreet) -- Shares of Dillard’s Inc.  are lower by -5.18% to $109.61 in mid-morning trading on Friday, after the company reported a decline in its 2014 second quarter net income to $34.5 million, compared to $36.5 million for the...
Benzinga  Aug 15  Comment 
Shares of Dillard's (NYSE: DDS) dipped more than 4.5% in pre-market trading after the company reported weaker-than-expected fiscal second-quarter earnings. The Little Rock, Arkansas-based company posted a quarterly profit of $34.5 million,...
Market Intelligence Center  Aug 15  Comment 
MarketIntelligenceCenter.com’s patented option-trade picking algorithm found two trade ideas on Dillard's Inc. (DDS) today after it traded between between $113.30 and $117.25 before closing at $115.60 on Thursday. For more conservative...
CNNMoney.com  Aug 15  Comment 
Read full story for latest details.




 

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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