Dillard's (DDS) Stock Falls in After-Hours Trading on Earnings Miss

NEW YORK (TheStreet) --Shares of Dillard's (DDS) were falling 1.8% to $122 after-hours Thursday after the department store missed analysts' estimates for earnings and revenue in the first quarter.

Dillard's reported earnings of $2.66 a share for the first quarter, below analysts' estimates of $2.78 a share for the quarter. Revenue grew to $1.57 billion in the first quarter from $1.55 billion in the year-ago quarter, missing analysts' estimates of $1.61 billion for the quarter.

"We are disappointed with our first quarter performance," CEO William T. Dillard, II said in a statement. "Our 1% sales decline hampered our ability to leverage operating expenses and to drive net income growth. Although inventory is higher than we would like, we believe the levels are manageable."

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, growth in earnings per share, increase in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows low profit margins."

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

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