Dillard’s has outperformed the broader industry in the past one year. The company’s constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and e-commerce business should help woo existing and new customers. Its focus on increasing productivity, enhancing domestic operations and boosting shareholder value also remain noteworthy. Further, the company topped earnings estimates in first-quarter fiscal 2017. However, the company has been plagued with the persistent challenging trends in the apparel retail segment. In first-quarter fiscal 2017, both top and bottom lines fell year over year, mainly due to soft sales across significant categories and higher SG&A expenses. Also, both merchandise sales and comps dropped from last year. We believe that persistent industry headwinds like stiff competition and consumers’ changing preferences toward online shopping may prove to be hurdles.