Market Overview

Dillard's Analyst Says Retailer's Markdown Trends Stabilizing

Dillard's Analyst Says Retailer's Markdown Trends Stabilizing

Recent promotional data indicates a stabilization in markdown trends at Dillard's, Inc. (NYSE: DDS), with promotions during the July 4 holiday being similar to last year’s levels, according to Wedbush.

The Analyst

Jen Redding upgraded Dillard's from Underperform to Neutral and raised the price target from $54 to $62.

The Thesis

Data for April through June indicated an upturn in promotions, which had “rendered us cautious on shares,” Redding said a Thursday note. (See her track record here.) 

More recent promotional data indicated a stabilization in markdown trends, the analyst said. 

While promotions seem to have stabilized, search trends indicate an upswing in demand of around 740 bps in June versus May, and early July data is even stronger, Redding said. 

Dillard's has also seen increased Form 4 insider purchasing, she said. 

Dillard’s stock has lost 18% since mid-April, and its valuation seems fair, the analyst said.

Wedbush raised its full-year total sales estimate from $1.433 billion to $1.5 billion, ahead of the consensus expectations of $1.481 billion, and the EPS estimate from $4.87 to $5.22 versus a $5.12 consensus forecast.

Price Action

Dillard's shares were trading higher by 5.94% at $64 at the time of publication Thursday. 

Related Links:

iAnthus Subsidiary CBD For Life Strikes Dillard's Partnership

Q1 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios

Photo via Wikimedia

Latest Ratings for DDS

Jan 2020Odeon CapitalInitiates Coverage OnSell
Nov 2019WedbushMaintainsNeutral
Aug 2019Deutsche BankMaintainsSell

View More Analyst Ratings for DDS
View the Latest Analyst Ratings

Posted-In: Jen Redding retail WedbushAnalyst Color Upgrades Price Target Analyst Ratings


Related Articles (DDS)

View Comments and Join the Discussion!

Latest Ratings

GRPNMorgan StanleyMaintains1.5
HMSYCantor FitzgeraldReiterates33.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at