Why Dillard’s (DDS) Stock Is Slumping Today

NEW YORK (TheStreet) -- Shares of Dillard’s Inc. (DDS) are lower by -5.18% to $109.61 in mid-morning trading on Friday, after the company reported a decline in its 2014 second quarter net income to $34.5 million, compared to $36.5 million for the same period last year.

Dillard’s earnings per share increased to 80 cents per share, from 79 cents per share for the 2013 second quarter.

Analysts polled by Thomson Reuters expected EPS of 86 cents per share for the quarter.EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE

The retailer, which sells fashion apparel, cosmetics, and home furnishings, posted a drop in net sales for the most recent quarter to $1.47 billion, from $1.48 billion for the 2013 second quarter, while analysts forecast $1.53 billion for the quarter.


Separately, TheStreet Ratings team rates DILLARDS INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate DILLARDS INC (DDS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: DDS Ratings Report

DDS Chart DDS data by YCharts

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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