QUOTE AND NEWS
Benzinga  Jul 7  Comment 
Bank of America downgraded Dillard's, Inc. (NYSE: DDS) from Neutral to Underperform. The price target for Dillard's has been lowered from $130.00 to $95.00. Dillard's shares have dropped 11.62 percent over the past 52 weeks, while the S&P 500...
Market Intelligence Center  Jul 7  Comment 
The patented option-trade picking algorithms that power MarketIntelligenceCenter.com's Artificial Intelligence Center are highlighting two trades on Dillard's Inc. (DDS) today after it closed at $105.88 on Monday. For more conservative investors,...
TheStreet.com  Jul 1  Comment 
NEW YORK (TheStreet) -- Dillard's Inc. was initiated with a "hold" rating and $116 price target at Deutsche Bank. The firm said it began coverage on the fashion and home furnishings retailer as it believes Dillard's sales and margins have...
Benzinga  Jun 4  Comment 
Analysts at Credit Suisse downgraded Dillard's, Inc. (NYSE: DDS) from Neutral to Underperform. Dillard's shares have gained 1.43 percent over the past 52 weeks, while the S&P 500 index has surged 9.66 percent in the same period. Dillard's...
Market Intelligence Center  Jun 3  Comment 
Dillard's Inc. (DDS) presents a trading opportunity that offers a 4.58% return in just 79 days. A covered call on Dillards at the $115.00 level expiring on Aug. '15 offers an assigned return rate of 4.58% or 21.18% annualized. This trade offers...
Forbes  May 19  Comment 
Bargain hunters are wise to pay careful attention to insider buying, because although there are many various reasons for an insider to sell a stock, presumably the only reason they would use their hard-earned dollars to make a purchase, is that...
TheStreet.com  May 15  Comment 
NEW YORK (TheStreet) -- Shares of Dillard's   are plunging 9.28% to $112.67 in afternoon trading Friday after Credit Suisse lowered its 2015 earnings estimate to $8 from $8.20. This action comes after the department store chain reported...
TheStreet.com  May 14  Comment 
NEW YORK (TheStreet) --Shares of Dillard's were falling 1.8% to $122 after-hours Thursday after the department store missed analysts' estimates for earnings and revenue in the first quarter. Dillard's reported earnings of $2.66 a share for the...
Benzinga  May 14  Comment 
Market Intelligence Center  Apr 24  Comment 
After closing Thursday at $137.85, Dillard's Inc. (DDS) presents an attractive opportunity to get a 3.73% return in just 56 days, which is an annualized return of 24.29% (for comparison purposes only). To enter this trade, sell one Jun. '15...




 

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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