Dillard's November Sales Up - Analyst Blog

Dillard's Inc. (DDS) reported an 8% increase in same stores sales for the four weeks ended November 27, 2010. Results of the reported month compare favorably with same stores sales declining 11% for the four weeks ended November 28, 2009.

Merchandise sales for the period increased 7% to gross $469.3 million. Region-wise, sales trend was above average in the Central and Eastern area but below average in the Western area.

Though sales of shoes and juniors' and children's apparel were considerably higher than the average in November 2010, sales in the home and furniture category and the cosmetics business were substantially below par.

Year-to-date sales were $4.8 billion, up 1% over the year-ago period. Comparable stores sales inched up 2% for the 43-week period.

During the third quarter 2010, Dillard's reported earnings of 22 cents a share that outpaced the Zacks Consensus Estimate of 6 cents and prior-year quarter loss of 3 cents a share. Net sales in the quarter were $1.34 billion, down 1% year over year. However, comparable store sales inched up 1%.

Kohl's Corporation (KSS), which competes with Dillard's, reported November same stores sales increase of 6.1%, with total sales climbing 8.1%. Macy's Inc. (M) also reported November same stores sales increase of 6.1% while total sales jumped 7.8%. Same store sales of another peer, J. C. Penney Company Inc. (JCP), for the month of November, increased 9.2% with total sales improving 7.2%.

The Zacks Consensus Estimate for fourth-quarter 2010 is $1.16 per share. For full years 2010 and 2011, the Zacks Consensus Estimates are, respectively, $2.13 per share and $2.21 per share.

We maintain our “Outperform” recommendation on Dillard's Inc. over the long term. The quantitative Zacks #1 Rank (short term Strong-Buy rating) on the stock indicates an upward pressure on the stock over the near term.

Based in Little Rock, Arkansas, Dillard's Inc. is a large departmental store chain, featuring fashion apparel and home furnishings in the United States.

 
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