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Here's How Dillard's (DDS) is Positioned Ahead of Q1 Earnings

Dillard’s, Inc. DDS is expected to register year-over-year top and bottom-line declines when it reports first-quarter fiscal 2023 numbers.

The Zacks Consensus Estimate for fiscal first-quarter revenues of $1.56 billion indicates a 3.2% decline from the year-ago reported figure. The Zacks Consensus Estimate for fiscal first-quarter earnings is pegged at $8.94 per share, indicating a 33.1% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.

We expect the company’s fiscal first-quarter total revenues to decline 5.7% year over year to $1,549.2 million and earnings to plunge 46.7% to $7.29 per share.

In the last reported quarter, the company recorded an earnings surprise of 63.8%. We note that in the trailing four quarters, the company’s bottom line beat the Zacks Consensus Estimate by 140.3%, on average.

Dillard's, Inc. Price and EPS Surprise

 

Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. Price and EPS Surprise

Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote

Key Factors to Note

Dillard’s has been benefiting from the continued momentum in consumer demand and inventory-management initiatives. The company’s strategy to offer fashion-forward and trendy products to attract customers has been a key driver.

DDS is likely to have retained its sales momentum on robust sales across product categories and regions. It has been witnessing robust demand for cosmetics, men’s apparel and accessories, home and furniture, and shoes.

However, stiff competition and inflation are likely to have been concerning. The company has been witnessing elevated SG&A expenses for the past few quarters, which have been denting its bottom line to some extent. Increased payroll and payroll-related expenses are likely to have been other headwinds. Such downsides are anticipated to have affected DDS’s profitability in the to-be-reported quarter.

What the Zacks Model Suggests

Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Dillard’s currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks With Favorable Combination

Here are three companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this time around.

Ross Stores ROST currently has an Earnings ESP of +0.94% and a Zacks Rank #2. The Zacks Consensus Estimate for ROST’s first-quarter fiscal 2023 earnings stands at $1.06 per share, implying year-over-year growth of 9.3%.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Ross Stores is estimated to report revenues of $4.5 billion, which suggests an increase of 3.9% from the year-ago quarter’s actual. ROST has a trailing four-quarter earnings surprise of 10.3%, on average.

Urban Outfitters URBN currently has an Earnings ESP of +4.59% and a Zacks Rank #2. The company is expected to register top and bottom-line growth when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly earnings per share of 36 cents suggests growth of 9.1% from the year-ago quarter.

Urban Outfitters’ top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.1 billion, indicating an increase of 3.9% from the figure reported in the year-ago quarter. URBN has a trailing four-quarter negative earnings surprise of 7.1%, on average.

DICK'S Sporting Goods DKS currently has an Earnings ESP of +4.43% and a Zacks Rank #2. DKS is likely to register year-over-year top and bottom-line growth in its first-quarter fiscal 2023 results. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.83 billion, suggesting 4.7% growth from the figure reported in the prior-year quarter.

The Zacks Consensus Estimate for DICK'S earnings for the fiscal first quarter is pegged at $3.18 per share, suggesting 11.9% growth from the year-ago quarter’s actual. The consensus mark has been unchanged in the past 30 days. DKS delivered an earnings beat of 10%, on average, in the trailing four quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Dillard's, Inc. (DDS) : Free Stock Analysis Report

Ross Stores, Inc. (ROST) : Free Stock Analysis Report

Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report

DICK'S Sporting Goods, Inc. (DKS) : Free Stock Analysis Report

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