Earnings Per Share (EPS) of $7.73 exceeded estimates, showcasing a significant earnings surprise of 19.47%.
Revenue reached $1.43 billion, slightly above expectations but marked a 3.3% decline year-over-year.
Financial health is solid with a current ratio of 2.38 and a debt-to-equity ratio of 0.14, indicating conservative debt use and strong liquidity.
Dillard’s Inc. (NYSE:DDS) is a prominent player in the retail sector, specifically within the regional department stores industry. The company is known for its wide range of products, including clothing, cosmetics, and home furnishings. Dillard’s competes with other major department stores like Macy’s and Nordstrom, striving to maintain its market position through strategic financial management and customer service.
On November 14, 2024, Dillard’s reported earnings per share (EPS) of $7.73, surpassing the estimated $6.50. This represents a significant earnings surprise of 19.47%, as highlighted by Zacks. Despite a challenging consumer environment, Dillard’s effective expense management contributed to robust retail gross margins and reduced operating expenses, allowing the company to exceed expectations.
Dillard’s revenue for the period was $1.43 billion, slightly above the Zacks Consensus Estimate of $1.42 billion, but below the initial estimate of $1.95 billion. This revenue figure marks a 3.3% decline from the previous year’s quarter. Including service charges and other income, total sales were $1.451 billion, a 3.5% year-over-year decrease. Despite these declines, Dillard’s managed to maintain a solid gross margin rate.
The company’s financial metrics reflect its market valuation and operational efficiency. With a price-to-earnings (P/E) ratio of approximately 10.88 and a price-to-sales ratio of about 1.03, Dillard’s is valued reasonably in the market. The enterprise value to sales ratio of roughly 0.94 indicates that the company is valued slightly below its total sales when considering its enterprise value.
Dillard’s maintains a strong liquidity position, with a current ratio of 2.38, indicating ample current assets to cover its current liabilities. The debt-to-equity ratio is relatively low at 0.14, showing conservative use of debt. These financial metrics, combined with an earnings yield of about 9.19%, provide insight into the company’s financial health and potential return on investment for shareholders.
