Watch out for Dillard’s, Inc. (DDS): Macy’s, Inc. (M), Nordstrom, Inc. (JWN)

Page 1 of 2

Recently, departmental stores have been in focus as they released their earnings, with most of the companies topping analyst expectations. Lets take a brief look at the 4Q performance of major departmental store stocks.

Dillard’s, Inc. (NYSE:DDS):

Dillard’s, Inc. (NYSE:DDS) is a relatively smaller player in the departmental stores space with 304 stores, primarily in the Midwest, southwest, and southeast areas of the United States. It has its own branded clothing line and also derives sales from its online platform.  The company suffered dwindling same-store sales for nearly a decade before returning to growth in 2010, and has now reported same-store sales gains for 10 straight quarters.

Dillard's, Inc. (NYSE:DDS)All three major ratings firms have lifted Dillard’s, Inc. (NYSE:DDS) rating this year on the strength of its operating performance. It reported 4Q12 sales increase of 7%, with Comparable Same Store Sales (SSS) of 3% (marking the Company’s 10th consecutive quarterly comparable sales increase). Positive sales performance and gross margin expansion driven by cost control helped to increase its cash flow, and as a result the company announced a special dividend of $5 per share.

Macy’s, Inc. (NYSE:M)

Dillard’s, Inc. (NYSE:DDS) closest competitor Macy’s, Inc. (NYSE:M), which operates the famous Bloomingdale, has around 40 stores under the names of Macy’s and Bloomingdales, and 7 Bloomingdales Outlet stores, as well as macys.com and bloomingdales.com. It reported strong 4Q12 results, increasing sales by 7.2% with SSS growth of 3.9%. It had a strong 2012 as a result of successful execution of its strategies and 48% surge in its online sales. It also guided for a strong FY13 with EPS of $3.90 to $3.95 and SSS of 3.5% (vs. Analyst expectations of $3.85).


Nordstrom, Inc. (NYSE:JWN)

A slightly more upscale chain, the omnipresent Nordstrom, Inc. (NYSE:JWN) operates 240 stores in 31 states, including 117 full-line stores and 119 Nordstrom Racks. It operates under two segments: Retail, which includes its full priced stores, off-price Nordstrom Rack stores, and its online store nordstrom.com, and Credit, which operates Nordstrom fsb, a federal savings bank, which provides a private label credit card and a debit card.

It reported strong 4Q12 sales of $3.7 billion, up 13% with SSS growth of 6.1%. The company benefitted from revived demand in its designer merchandise after the recent economic recession, and also benefitted from an extra week during the period. However, it provided a weak outlook for FY13, guiding EPS of $3.65 to $3.80 and 4.5% to 6.5% increase in total sales with same-store sales growth of 3.5% to 5.5% (vs. Analysts expectations of EPS $3.97 and revenue growth of 7.1%).

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!