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Will Dillard's Growth Efforts Help Gain Momentum in 2017?
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Dillard's, Inc. (DDS - Free Report) is well positioned to benefit from growth opportunities in both its brick-and-mortar stores and eCommerce business, which will help to retain its existing customers and attract new ones. Also, the company has created a niche for itself through its stringent focus on offering fashionable products and adding value through exceptional customer care service.
As a leading player among fashion apparel, cosmetics and home furnishing retailers, Dillard’s offers a broad array of merchandise at its stores. These stores feature products from both national and exclusive brands. The company is likely to gain from better brand relations, focus on in-trend categories, store remodels and rewarding store personnel.
Alongside, the company focuses on enhancing merchandise assortments and effective inventory management to boost growth across its eCommerce business. We expect its top line and bottom line to gain not only from increasing productivity at the existing stores, but also by developing a leading omni-channel platform and enhancing its domestic operations in the years ahead.
However, Dillard's reverted to its negative surprise trend in third-quarter fiscal 2016 as earnings missed estimates and plunged year over year mainly due to soft sales performance. Results were also hurt by the persistent challenging trends in the apparel retail segment as well as gross margin contraction. Further, Dillard’s fiscal 2016 outlook indicates significant cost pressures, which might hurt margins and earnings. (Read more: Dillard's Q3 Earnings Miss on Soft Sales, Stock Down)
Consequently, the Zacks Consensus Estimate for fiscal 2016 and fiscal 2017 has declined 3.8% to $5.59 and 3.4% to $5.46, respectively, over the past 60 days.
Moreover, the retail industry is expected to remain challenging as brick-and-mortar stores continue to lose sheen to the rise of online businesses. In addition, raw material price volatility, macroeconomic challenges and competitive threat remain major concerns for the company.
Nonetheless, Dillard's focus on increasing productivity, enhancement of domestic operations and the aforementioned growth strategies, along with shareholder-friendly moves, are likely to help the company in sustaining its momentum. Moreover, estimates have been stable, of late, ahead of the fourth-quarter earnings release. Further, we note that its shares have increased nearly 3% in the past six months, outperforming the Zacks categorized Retail-Wholesale sector’s rise of 1%.
Zacks Rank & Key Picks
Dillard's currently has a Zacks Rank #3 (Hold). Some better-ranked stocks include The Children's Place, Inc. (PLCE - Free Report) , Christopher & Banks Corporation and Kohl's Corporation (KSS - Free Report) .
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained 25.9% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Christopher & Banks, a Zacks Rank #1 stock, has surged a whopping 61.4% in the past three months. Moreover, it has a long-term earnings growth rate of 15%.
Kohl's, which carries a Zacks Rank #2 (Buy) has a long-term earnings growth rate of 7%. Also, the stock has increased 30.2% in the past six months.
Zacks' Top 10 Stocks for 2017
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Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>
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Will Dillard's Growth Efforts Help Gain Momentum in 2017?
Dillard's, Inc. (DDS - Free Report) is well positioned to benefit from growth opportunities in both its brick-and-mortar stores and eCommerce business, which will help to retain its existing customers and attract new ones. Also, the company has created a niche for itself through its stringent focus on offering fashionable products and adding value through exceptional customer care service.
As a leading player among fashion apparel, cosmetics and home furnishing retailers, Dillard’s offers a broad array of merchandise at its stores. These stores feature products from both national and exclusive brands. The company is likely to gain from better brand relations, focus on in-trend categories, store remodels and rewarding store personnel.
Alongside, the company focuses on enhancing merchandise assortments and effective inventory management to boost growth across its eCommerce business. We expect its top line and bottom line to gain not only from increasing productivity at the existing stores, but also by developing a leading omni-channel platform and enhancing its domestic operations in the years ahead.
DILLARDS INC-A Price and Consensus
DILLARDS INC-A Price and Consensus | DILLARDS INC-A Quote
However, Dillard's reverted to its negative surprise trend in third-quarter fiscal 2016 as earnings missed estimates and plunged year over year mainly due to soft sales performance. Results were also hurt by the persistent challenging trends in the apparel retail segment as well as gross margin contraction. Further, Dillard’s fiscal 2016 outlook indicates significant cost pressures, which might hurt margins and earnings. (Read more: Dillard's Q3 Earnings Miss on Soft Sales, Stock Down)
Consequently, the Zacks Consensus Estimate for fiscal 2016 and fiscal 2017 has declined 3.8% to $5.59 and 3.4% to $5.46, respectively, over the past 60 days.
Moreover, the retail industry is expected to remain challenging as brick-and-mortar stores continue to lose sheen to the rise of online businesses. In addition, raw material price volatility, macroeconomic challenges and competitive threat remain major concerns for the company.
Nonetheless, Dillard's focus on increasing productivity, enhancement of domestic operations and the aforementioned growth strategies, along with shareholder-friendly moves, are likely to help the company in sustaining its momentum. Moreover, estimates have been stable, of late, ahead of the fourth-quarter earnings release. Further, we note that its shares have increased nearly 3% in the past six months, outperforming the Zacks categorized Retail-Wholesale sector’s rise of 1%.
Zacks Rank & Key Picks
Dillard's currently has a Zacks Rank #3 (Hold). Some better-ranked stocks include The Children's Place, Inc. (PLCE - Free Report) , Christopher & Banks Corporation and Kohl's Corporation (KSS - Free Report) .
The Children's Place, with a long-term earnings growth rate of 10.3%, has gained 25.9% in the past six months. The stock sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Christopher & Banks, a Zacks Rank #1 stock, has surged a whopping 61.4% in the past three months. Moreover, it has a long-term earnings growth rate of 15%.
Kohl's, which carries a Zacks Rank #2 (Buy) has a long-term earnings growth rate of 7%. Also, the stock has increased 30.2% in the past six months.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest tickers for the entirety of 2017?
Who wouldn't? These 10 are painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. They are our primary picks to buy and hold. Be among the very first to see them >>