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The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.51 billion indicates a 1.4% rise from the year-ago reported figure. The consensus estimate for earnings is pegged at $3.79 per share, implying a 17.4% decrease from the year-ago quarter’s reported figure. The consensus estimate has increased 9.2% in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 14.2%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 12.7%, on average.
Factors Likely to Drive DDS’ Q2 Results
Dillard's has been gaining from strategic efforts and strong consumer demand. The company’s focus on inventory management, store and e-commerce expansion, and trendy merchandise has reinforced its position amid a competitive retail landscape. DDS has been gaining from enhancing brand relations, in-trend categories and store remodels. Its activewear brand is expected to have gained market share in the to-be-reported quarter.
In addition, DDS’ e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have been driven by its focus on increasing productivity at existing stores, improving the omnichannel platform and enhancing domestic operations.
Dillard's efforts to capture growth opportunities in brick-and-mortar stores and e-commerce have been key drivers. It has been focused on enhancing brand relationships, remodeling stores and optimizing its activewear segment. Gains from these initiatives are likely to have widened the customer base and boosted the company's overall sales in the fiscal second quarter. Our model predicts a comparable-store sales rise of 1.3% year over year while retail sales are expected to grow 1.1% year over year for the fiscal second quarter.
However, Dillard’s has been witnessing the adverse impacts of a tough retail environment due to the cautious buying behavior of consumers. Additionally, higher expenses are likely to have dented margins and the bottom line in the fiscal second quarter. While we expect SG&A expenses to increase 3% for the quarter under review, the SG&A expense rate is anticipated to expand 60 basis points to 29.2%. Our model predicts a 26.2% year-over-year decline in operating profit, with a 180-bps contraction in the operating margin.
Earnings Whispers for DDS Stock
Our proven model predicts an earnings beat for Dillard’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of +23.90% and a Zacks Rank of 1.
DDS Stock’s Valuation Picture & Price Performance
From a valuation perspective, Dillard’s is trading at a premium relative to industry and historical benchmarks. The company has a forward 12-month price-to-sales ratio of 1.15X, higher than the Retail - Regional Department Stores industry’s average of 0.34X. The company is trading below its five-year high of 1.24X.
The recent market movements show that DDS shares gained 23.6% in the past three months compared with the industry's 16.8% growth.
Here are a few more companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Abercrombie & Fitch ((ANF - Free Report) ) currently has an Earnings ESP of +2.62% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $1.2 billion, which indicates an increase of 4.5% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s quarterly earnings per share of $2.27 implies a decline of 9.2% from the year-ago quarter. The consensus mark has increased a penny in the past 30 days. ANF has a trailing four-quarter earnings surprise of 11.2%, on average.
DICK'S Sporting Goods ((DKS - Free Report) ) currently has an Earnings ESP of +1.13% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $3.6 billion, which indicates a rise of 3.6% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for DKS’ quarterly earnings per share of $4.29 implies a decline from $4.37 reported in the year-ago quarter. The consensus mark has gone up three cents in the past 30 days. DKS has a trailing four-quarter earnings surprise of 5.6%, on average.
The TJX Companies, Inc. ((TJX - Free Report) ) currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2026 EPS is pegged at $1.01, which implies a 5.2% rise year over year.
The consensus mark for TJX’s quarterly revenues is pegged at $14.1 billion, which indicates growth of 4.5% from the figure reported in the prior-year quarter. TJX delivered a trailing four-quarter earnings surprise of 4.3%, on average.
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Dillard's to Report Q2 Earnings: Essential Insights Ahead of the Report
Key Takeaways
Dillard’s, Inc. ((DDS - Free Report) ) is expected to register a year-over-year top-line increase when it reports second-quarter fiscal 2025 numbers.
The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.51 billion indicates a 1.4% rise from the year-ago reported figure. The consensus estimate for earnings is pegged at $3.79 per share, implying a 17.4% decrease from the year-ago quarter’s reported figure. The consensus estimate has increased 9.2% in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 14.2%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 12.7%, on average.
Factors Likely to Drive DDS’ Q2 Results
Dillard's has been gaining from strategic efforts and strong consumer demand. The company’s focus on inventory management, store and e-commerce expansion, and trendy merchandise has reinforced its position amid a competitive retail landscape. DDS has been gaining from enhancing brand relations, in-trend categories and store remodels. Its activewear brand is expected to have gained market share in the to-be-reported quarter.
In addition, DDS’ e-commerce business has been well-placed on the enhancement of merchandise assortments and effective inventory management. We expect the company’s fiscal second-quarter performance to have been driven by its focus on increasing productivity at existing stores, improving the omnichannel platform and enhancing domestic operations.
Dillard's efforts to capture growth opportunities in brick-and-mortar stores and e-commerce have been key drivers. It has been focused on enhancing brand relationships, remodeling stores and optimizing its activewear segment. Gains from these initiatives are likely to have widened the customer base and boosted the company's overall sales in the fiscal second quarter. Our model predicts a comparable-store sales rise of 1.3% year over year while retail sales are expected to grow 1.1% year over year for the fiscal second quarter.
However, Dillard’s has been witnessing the adverse impacts of a tough retail environment due to the cautious buying behavior of consumers. Additionally, higher expenses are likely to have dented margins and the bottom line in the fiscal second quarter. While we expect SG&A expenses to increase 3% for the quarter under review, the SG&A expense rate is anticipated to expand 60 basis points to 29.2%. Our model predicts a 26.2% year-over-year decline in operating profit, with a 180-bps contraction in the operating margin.
Earnings Whispers for DDS Stock
Our proven model predicts an earnings beat for Dillard’s this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of +23.90% and a Zacks Rank of 1.
DDS Stock’s Valuation Picture & Price Performance
From a valuation perspective, Dillard’s is trading at a premium relative to industry and historical benchmarks. The company has a forward 12-month price-to-sales ratio of 1.15X, higher than the Retail - Regional Department Stores industry’s average of 0.34X. The company is trading below its five-year high of 1.24X.
The recent market movements show that DDS shares gained 23.6% in the past three months compared with the industry's 16.8% growth.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Other Stocks With the Favorable Combination
Here are a few more companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Abercrombie & Fitch ((ANF - Free Report) ) currently has an Earnings ESP of +2.62% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $1.2 billion, which indicates an increase of 4.5% from the figure reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ANF’s quarterly earnings per share of $2.27 implies a decline of 9.2% from the year-ago quarter. The consensus mark has increased a penny in the past 30 days. ANF has a trailing four-quarter earnings surprise of 11.2%, on average.
DICK'S Sporting Goods ((DKS - Free Report) ) currently has an Earnings ESP of +1.13% and a Zacks Rank of 3. The company is likely to register an increase in the top line when it reports second-quarter fiscal 2025 numbers. The consensus mark for revenues is pegged at $3.6 billion, which indicates a rise of 3.6% from the figure reported in the year-ago quarter.
The Zacks Consensus Estimate for DKS’ quarterly earnings per share of $4.29 implies a decline from $4.37 reported in the year-ago quarter. The consensus mark has gone up three cents in the past 30 days. DKS has a trailing four-quarter earnings surprise of 5.6%, on average.
The TJX Companies, Inc. ((TJX - Free Report) ) currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter fiscal 2026 EPS is pegged at $1.01, which implies a 5.2% rise year over year.
The consensus mark for TJX’s quarterly revenues is pegged at $14.1 billion, which indicates growth of 4.5% from the figure reported in the prior-year quarter. TJX delivered a trailing four-quarter earnings surprise of 4.3%, on average.