By midafternoon, shares had fallen 7% to $83.12. Trading volume of 3.1 million was more than five times its three-month daily average.
In the three months to January, the department store chain recorded net profit of $119.1 million, 26% lower than a year earlier. Excluding one-time charges, net earnings fell 6% to $2.69 a share. Analysts surveyed by Thomson Reuters had expected earnings of $3 a share.
Revenue of $2.03 billion dropped 3.4% from a year earlier. Comparable-store sales increased 2% over the quarter."Although it was a profitable fourth quarter, we are disappointed in our gross margin performance, as lower than anticipated sales necessitated heavier markdowns," said CEO William T. Dillard in a statement. Also See: Why J.C.Penney's Cash Position Looks Shaky TheStreet Ratings team rates DILLARDS INC as a Buy with a ratings score of B+. The team has this to say about their recommendation: "We rate DILLARDS INC (DDS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
- You can view the full analysis from the report here: DDS Ratings Report
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV