Market Intelligence Center  Mar 9  Comment 
MarketIntelligenceCenter.com's patented algorithms have selected a trade on Dillard's Inc. (DDS) that returns 7.11% in 67 days for an annualized return rate of 39%. This diagonal spread pairs a short position in the May. '15 $130.00 call, with a...
Market Intelligence Center  Feb 27  Comment 
After closing Thursday at $130.00, Dillard's Inc. (DDS) presents an attractive opportunity to get a 2.88% return in just 77 days, which is an annualized return of 13.66% (for comparison purposes only). To enter this trade, sell one May. '15...
Benzinga  Feb 24  Comment 
Stifel Financial Corp. (NYSE: SF) shares rose 4.64% to reach a new 52-week high of $54.51 after the company reported Q4 results and announced the acquisition of Sterne Agee for $150 million. The Home Depot, Inc. (NYSE: HD) shares touched a...
TheStreet.com  Feb 23  Comment 
NEW YORK (TheStreet) -- Shares of Dillard's Inc. are higher by 2.03% to $126 in after-hours trading on Monday, following the fashion apparel, cosmetics, and home furnishings retailer's 2014 fourth quarter earnings results which increased...
Benzinga  Dec 23  Comment 
According to The Deal, Dillard's, Inc. (NYSE: DDS) is being eyed by Hudson's Bay Chief Executive Officer Richard Baker as a potential acquisition target. According to The Deal's sources, Baker is interested in acquiring Dillard's because of its...
Benzinga  Nov 21  Comment 
Analysts at Bank of America downgraded Dillard's (NYSE: DDS) from Buy to Neutral. The price target for Dillard's is set to $125. Dillard's shares have gained 32.73% over the past 52 weeks, while the S&P 500 index has surged 13.74% in the same...
TheStreet.com  Nov 20  Comment 
NEW YORK (TheStreet) -- Shares of Dillard's were gaining 8.6% to $120.29 Thursday following reports that activist hedge fund Marcato Capital Management is asking the department store operator to spin off its real estate assets into a real...
Benzinga  Nov 14  Comment 
In a report published Friday, Credit Suisse analyst Michael Exstein reiterated a Neutral rating and $105.00 price target on Dillard's (NYSE: DDS). In the report, Credit Suisse noted, “Dillard's reported in-line results, but the issue remains a...
Market Intelligence Center  Nov 10  Comment 
With bullish technical indicators and a 3 STARS (out of 5) hold ranking from Standard & Poor’s, Dillard's Inc. (DDS) could be an attractive play for investors according to MarketIntelligenceCenter.com's patented option-trade picking algorithms....
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...


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.


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).


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