The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Dillard's beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share contracted significantly.
Gross margins grew, operating margins grew, net margins dropped.
Dillard's booked revenue of $1.49 billion. The two analysts polled by S&P Capital IQ expected a top line of $1.44 billion on the same basis. GAAP reported sales were 4.9% higher than the prior-year quarter's $1.42 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.99. The two earnings estimates compiled by S&P Capital IQ averaged $0.69 per share. GAAP EPS of $1.01 for Q3 were 77% lower than the prior-year quarter's $4.31 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.1%, 20 basis points better than the prior-year quarter. Operating margin was 6.0%, 210 basis points better than the prior-year quarter. Net margin was 3.3%, 1,280 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.15 billion. On the bottom line, the average EPS estimate is $2.87.
Next year's average estimate for revenue is $6.70 billion. The average EPS estimate is $6.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 154 members out of 394 rating the stock outperform, and 240 members rating it underperform. Among 132 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Dillard's a green thumbs-up, and 72 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dillard's is outperform, with an average price target of $81.33.
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