DillardsNYSE: DDS

I recommend a hold rating for Dillard's due to an unfavorable macro backdrop and growing inventory risks impacting near-term performance. DDS reported disappointing 2Q24 results, with declining sales, margins, and continued negative same-store sales growth, leading to a significant stock price drop. High inventory levels and weak consumer spending environment pose downside risks to DDS's gross margins and profitability in the near term.

LITTLE ROCK, Ark., Aug. 22, 2024 (GLOBE NEWSWIRE) -- Dillard's, Inc. (DDS-NYSE) (the “Company” or “Dillard's”) announced that the Board of Directors declared a cash dividend of $0.25 per share on the Class A and Class B Common Stock of the Company. The dividend is payable November 4, 2024 to shareholders of record as of September 30, 2024.

Dillard's (DDS) shares sank over 10% Thursday after the department store chain reported second-quarter results that missed analysts' estimates as inflation-weary consumers cut back on discretionary spending and the company's costs rose.

Dillard's reported Q2 results with below-expectation comparable store sales, related to continuing challenges in consumer spending. The weak sales are in part related to macroeconomic worries, but in light of recent performance against peers, Dillard's Q2 could also be a sign of company-specific traffic weakness. Worryingly, Dillard's didn't manage to adapt costs to the weaker consumer spending, only starting to adapt after Q2.

Dillard's (DDS) Q2 results are expected to reflect the benefits of strong demand and robust inventory management initiatives amid a challenging retail environment.

Dillard's (DDS) stays ahead of the curve, driven by a stringent focus on inventory management and its strategy of providing trend-right merchandise to customers.

Dillard's, Inc. (NYSE: DDS) declared a cash dividend of $0.25 per share on the Company's Class A and Class B Common Stock. The dividend will be paid on August 5, 2024 to shareholders of record as of June 28, 2024.

Dillard's (DDS) continues to face challenges in the first quarter due to difficult retail conditions, resulting in weaker sales and profits. Increased operating costs also added to the difficulties.

The key figures for Dillard's (DDS) offer a glimpse into the company's performance in the quarter ending April 2024, but it could be beneficial to analyze certain important indicators in comparison to Wall Street predictions and the figures from the same period last year.