Dillard’s, Inc. DDS is poised for a showdown as it is anticipated to face year-over-year top and bottom-line declines during the upcoming report of its fourth-quarter fiscal 2023 numbers.
Dillard’s Q4 Fiscal 2023 Estimates
The Zacks Consensus Estimate for fiscal fourth-quarter revenues of $2.1 billion indicates a 2.2% decline from the year-ago reported figure. Meanwhile, the Zacks Consensus Estimate for fiscal fourth-quarter earnings is pegged at $11.59 per share, indicating a 20.1% decrease from the year-ago quarter’s reported figure. Notably, the consensus estimate has moved up 0.4% in the past 30 days.
Performance Highlights
Dillard’s is showing signs of strength, demonstrated by its recent earnings surprise of 33.8%. Over the trailing four quarters, the company beat the Zacks Consensus Estimate by an average of 54.2%. This indicates that despite market challenges, the company has been resilient.
Factors Driving Growth
The company’s success can be attributed to its prudent inventory management, which has led to lower inventory levels and boosted consumer demand. Furthermore, Dillard’s strategic initiatives to optimize its activewear segment and enhance brand relationships have bolstered its performance, lifting the company’s prospects in brick-and-mortar stores and the e-commerce business.
Challenges in the Retail Arena
Consumer cautiousness, particularly in juniors’ and children’s apparel, along with increased expenses, is expected to have a negative impact on the company’s fiscal fourth-quarter performance. Our model predicts a decline in comps and gross margin which could pose challenges for the retailer.
Zacks Model Prediction
Although, Dillard’s current Earnings ESP of -12.49% and a Zacks Rank #2 do not conclusively predict an earnings beat, the company has showcased resilience in the face of adversity. On the horizon, the company seems determined to maintain its stance and market value, despite market challenges.
Top-Performing Stocks to Consider
For investors looking beyond Dillard’s due to its current predicament, other top-performing stocks include American Eagle Outfitters (AEO) with an Earnings ESP of +0.87%, DICK’S Sporting Goods (DKS) with an Earnings ESP of +1.08%, and Ross Stores (ROST) with an Earnings ESP of +0.02%. These companies, each boasting a strong Zacks Rank, are prime contenders for a successful fiscal fourth quarter.
Concluding Thoughts
As we await Dillard’s performance, it remains clear that despite challenges, the company is leaving no stone unturned to stay ahead. The retail arena has become a battlefield with only the fiercest warriors prevailing amidst the turmoil. Nevertheless, with the company’s gritty resolve, it is possible that it will emerge triumphantly from the stormy seas of market turbulence.
