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Dillard's Touches 52-Week High: What's Driving the Stock?
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Dillard’s, Inc. (DDS - Free Report) appears quite promising backed by its growth strategies, unique merchandise offerings and impressive first-quarter fiscal 2018 results.
Notably, Dillard’s shares hit a 52-week high of $94.43 on Jun 8, though it closed a tad lower at $93.84. This uptrend can be attributed to the company’s solid start to fiscal 2018. In the fiscal first quarter, both earnings and revenues outpaced the estimates and improved year over year. In fact, the stock gained as much as 30.3% since it reported quarterly numbers on May 17.
Further, this Zacks Rank #2 (Buy) company’s shares have surged a whopping 64.9% in the past six months compared with the industry’s rally of 54.8%. Also, Dillard’s long-term earnings growth rate of 9.9% and a VGM Score of A are encouraging.
Let’s delve deep.
Solid Q1 Results & Uptrend in Earnings Estimates
In first-quarter fiscal 2018, Dillard’s reported third consecutive quarter of positive earnings surprise with fourth straight sales beat. Quarterly results were driven by continued positive trends witnessed in the fourth quarter into the first quarter.
The bottom-line results were aided by higher sales and comparable store sales (comps) growth. Further, the top line gained from strength across its ladies' accessories and lingerie, men's apparel and accessories, juniors' and children's apparel as well as home and furniture categories.
As a result, analysts grew optimistic about the stock as evident from rise in earnings estimates. The Zacks Consensus Estimate of $6.05 for fiscal 2018 and $5.71 for fiscal 2019 moved north 25 cents and 59 cents, respectively, in the last 30 days.
Other Strategic Efforts
Dillard's constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and e-commerce business remain encouraging. On the store front, the company will gain by enhancing brand relations, focusing on in-trend categories, store remodels and rewarding store personnel.
Some of the strategies to boost growth across its e-commerce business include enhancement of merchandise assortments and effective inventory management. We believe Dillard's focus on increasing productivity, enhancing domestic operations and developing omni-channel platform is likely to strengthen customer base and boost profitability.
Being a leading player among fashion apparel, cosmetics and home furnishing retailers, Dillard's offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. Also, the company has created a niche for itself through stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service.
We believe that Dillard's strategy of offering fashion-forward and trendy products acts as a catalyst for attracting more customers. In addition, Dillard's constant shareholder-friendly moves remain noteworthy.
The Buckle, Inc. (BKE - Free Report) delivered an average positive earnings surprise of 9.7% in the trailing four quarters and carries a Zacks Rank #2.
Fossil Group, Inc. (FOSL - Free Report) also a Zacks Rank #2 stock delivered an average positive earnings surprise of 54.1% in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Dillard's Touches 52-Week High: What's Driving the Stock?
Dillard’s, Inc. (DDS - Free Report) appears quite promising backed by its growth strategies, unique merchandise offerings and impressive first-quarter fiscal 2018 results.
Notably, Dillard’s shares hit a 52-week high of $94.43 on Jun 8, though it closed a tad lower at $93.84. This uptrend can be attributed to the company’s solid start to fiscal 2018. In the fiscal first quarter, both earnings and revenues outpaced the estimates and improved year over year. In fact, the stock gained as much as 30.3% since it reported quarterly numbers on May 17.
Further, this Zacks Rank #2 (Buy) company’s shares have surged a whopping 64.9% in the past six months compared with the industry’s rally of 54.8%. Also, Dillard’s long-term earnings growth rate of 9.9% and a VGM Score of A are encouraging.
Let’s delve deep.
Solid Q1 Results & Uptrend in Earnings Estimates
In first-quarter fiscal 2018, Dillard’s reported third consecutive quarter of positive earnings surprise with fourth straight sales beat. Quarterly results were driven by continued positive trends witnessed in the fourth quarter into the first quarter.
The bottom-line results were aided by higher sales and comparable store sales (comps) growth. Further, the top line gained from strength across its ladies' accessories and lingerie, men's apparel and accessories, juniors' and children's apparel as well as home and furniture categories.
As a result, analysts grew optimistic about the stock as evident from rise in earnings estimates. The Zacks Consensus Estimate of $6.05 for fiscal 2018 and $5.71 for fiscal 2019 moved north 25 cents and 59 cents, respectively, in the last 30 days.
Other Strategic Efforts
Dillard's constant efforts to capitalize on growth opportunities in its brick-and-mortar stores and e-commerce business remain encouraging. On the store front, the company will gain by enhancing brand relations, focusing on in-trend categories, store remodels and rewarding store personnel.
Some of the strategies to boost growth across its e-commerce business include enhancement of merchandise assortments and effective inventory management. We believe Dillard's focus on increasing productivity, enhancing domestic operations and developing omni-channel platform is likely to strengthen customer base and boost profitability.
Being a leading player among fashion apparel, cosmetics and home furnishing retailers, Dillard's offers a broad array of merchandise in its stores, featuring products from both national and exclusive brands. Also, the company has created a niche for itself through stringent focus on offering fashionable products to its customers and adding value through exceptional customer care service.
We believe that Dillard's strategy of offering fashion-forward and trendy products acts as a catalyst for attracting more customers. In addition, Dillard's constant shareholder-friendly moves remain noteworthy.
Interested in Retail Stocks? Check These
Urban Outfitters, Inc. (URBN - Free Report) pulled off an average positive earnings surprise of 19.8% in the last four quarters. The company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Buckle, Inc. (BKE - Free Report) delivered an average positive earnings surprise of 9.7% in the trailing four quarters and carries a Zacks Rank #2.
Fossil Group, Inc. (FOSL - Free Report) also a Zacks Rank #2 stock delivered an average positive earnings surprise of 54.1% in the trailing four quarters.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>