Dillard's (DDS) Stock Tanks on Lower-Than-Expected Q1 Results
NEW YORK (TheStreet) -- Dillard's (DDS) - Get Report shares are sliding 5.18% to $57.50 in Friday's pre-market trading session after the retailer yesterday afternoon posted weak 2016 first quarter earnings.
Profit for the recent period came in at $2.17 a share, missing Wall Street's expectations of $2.57 a share.
Revenue of $1.54 billion was also shy of estimates, as analysts were looking for $1.56 billion.
For the third quarter in a row, the company's same-store sales declined. Its recent 5% drop in the latest quarter was more than twice what analysts were anticipating.
Overall, sales trends were weak in home and furniture, and ladies' accessories and lingerie, and sales were strong in shoes.
"Our disappointing sales pressured our gross margin and net income performance, although inventory was relatively flat at quarter end," CEO William T. Dillard, II said. "While we controlled expenses, sales leverage was difficult to achieve."
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and poor profit margins.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
You can view the full analysis from the report here: DDS
