Yahoo Finance Dillard's (DDS) Q1 Earnings & Revenues Top Estimates, Dip Y/Y
Dillard's Inc. DDS posted impressive first-quarter fiscal 2023 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. This marked the ninth straight quarter of a top-line beat and the 11th straight quarter of a bottom-line beat. Results gained from better inventory management and consumer demand.
Adjusted earnings of $11.85 per share significantly surpassed the Zacks Consensus Estimate of $9.07 and our estimate of $7.29. However, the bottom line declined 13.4% from the year-ago quarter's $13.68 per share.
Total revenues of $1,584 million decreased 1.7% from the prior-year quarter but beat the Zacks Consensus Estimate of $1,568 million. Also, the figure surpassed our estimate of $1,549.2 million.
Total retail sales (excluding CDI Contractors, LLC) fell 4% year over year to $1,515 million. Comparable store sales also declined 4% year over year. The company witnessed robust sales in cosmetics and ladies’ apparel. On the flip side, ladies’ accessories and lingerie, and children’s apparel, were the weakest performing categories.
The retail and consolidated gross margins contracted 280 basis points (bps) each to 43.7% from the year-ago quarter.
Dillard's consolidated SG&A expenses (as a percentage of sales) expanded 70 bps to 21.6% from the prior-year quarter's 26.5%. In dollar terms, SG&A expenses (operating expenses) grew 1.4% to $406.4 million.
The retail operating expense rate expanded 80 bps to 25.7%. In dollar terms, retail operating expenses grew 4% to $456.3 million.
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Shares of DDS have lost 28.5% in the past three months compared with the industry's decline of 33%.
Financial Details
This Zacks Rank #3 (Hold) company ended the quarter with cash and cash equivalents of $848.3 million, long-term debt of $321.4 million, and total shareholders' equity of $1,683.1 million. The company provided $280.9 million of cash through operating activities.
Capital expenditure for fiscal 2023 is likely to be $150 million, suggesting growth from the year-ago figure of $120 million. The company repurchased $113.8 million of Class A common stock under its existing repurchase program. As of Apr 29, it had shares worth $61.6 million remaining under its February 2022 plan.
Store Update
As of Apr 29, DDS operated 247 full-line Dillard’s stores and 27 clearance stores in 29 states and on dillards.com.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
Outlook
For fiscal 2023, Dillard’s expects depreciation and amortization of $180 million, whereas it reported $188 million in the prior year. Net interest income is likely to be $3 million, whereas it recorded expenses of $11 million in the prior year.
Stocks to Consider
Here are some better-ranked stocks that you may want to consider, namely, Urban Outfitters URBN, Kroger KR and DICK’S Sporting Goods DKS.
Urban Outfitters, a leading lifestyle product and services company, currently flaunts a Zacks Rank #1 (Strong Buy). The company’s expected EPS growth rate for three to five years is 18%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Urban Outfitters’ current fiscal year’s revenues suggests growth of 5% from the year-ago reported figure.
Kroger, a renowned grocery retailer, currently sports a Zacks Rank #1. KR has a trailing four-quarter earnings surprise of 9.8%, on average.
The Zacks Consensus Estimate for Kroger’s current financial year’s EPS suggests growth of 6.6% from the year-ago reported figure. KR has an expected EPS growth rate of 6% for three to five years.
DICK’S Sporting, which operates as a major omni-channel sporting goods retailer, offering athletic shoes, apparel, accessories and a broad selection of outdoor and athletic equipment, carries a Zacks Rank #2 (Buy) at present. The company’s expected EPS growth rate for three to five years is 5.4%.
The Zacks Consensus Estimate for DICK’S Sporting’s current fiscal year’s revenues and EPS suggests growth of 2.2% and 10%, respectively, from the year-ago reported figures. DKS has a trailing four-quarter earnings surprise of 10%, on average.
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