They're Growing Again: Analysts Bullish on Holiday Sales As Dillard's Extends Sales Streak

by Mark Friedman  on Monday, Oct. 21, 2013 12:00 am  

One area that was a concern for the analyst Exstein, though, was Dillard’s rising level of inventory. “We are cautious of the elevated inventory level for the second straight quarter in spite of gross margin improvement,” he wrote. “Total inventories grew 7.1 percent.”

As a result, Exstein said he was lowering his projection for Dillard’s third-quarter earnings per share from $1.10 to $1.05.

Dillard’s Inc. Same-store Sales

For Quarter Ending Percent Increase
Oct. 30, 2010 1
Jan. 29, 2011 7
April 30, 2011 2
July 30, 2011 6
Oct. 29, 2011 5
Jan. 28, 2012 3
April 28, 2012 5
July 28, 2012 3
Oct. 27, 2012 5
Feb. 2, 2013 3
May 4, 2013 1
Aug. 3, 2013 1

Source: Dillard’s Inc. filing with the Securities & Exchange Commission

Christmas Merchandise

Dillard’s Bull said in her email to Arkansas Business that the company is going to promote “new ideas in gift giving with a rich tradition of service” for the holiday season.

Some of the products that will be highlighted include UR gloves, which allow wearers to use touchscreen devices without removing their gloves, she said. Infinity scarves will also be advertised as a gift idea for women, and Dillard’s “will have a wide assortment in both knits and wovens,” Bull said. Boots and handbags also will be featured as potential gifts, she said.

Davidowitz said he thinks Dillard’s is going to do well this holiday season. “They’ll have to manage the holiday well in terms of inventory flow and getting it going early,” he said. “But I think given Dillard’s record, they should be able to do that.”



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