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J.C. Penney Company, Inc. (JCP), Macy’s, Inc. (M), Dillard’s, Inc. (DDS): Are Any Retailers Worth a Buy?

The company did not meet Wall Street expectations for revenue, though. It brought in $1.55 billion, compared to the expected $1.62 billion.

Despite this, the first quarter brought good news to investors. Operating costs were lower by roughly $3 million and the company’s gross margins also improved. Dillard’s, Inc. (NYSE:DDS) has been keeping a close eye on its expense levels in an effort to boost profitability.

Same-store sales were up 5% this year. The highest gains were in women’s clothing and children’s clothing. If the company continues to market these items through the summer and fall, profits will continue to rise. Dillard’s, Inc. (NYSE:DDS) is expected to bring in $7.31 per share this year, which is a 15% increase from last year.

With a great quarter behind it, Dillard’s, Inc. (NYSE:DDS) is looking good going in to this fiscal year. There is a lot of competition in the market for department stores, however. This is a good company to hold right now, but it isn’t primed for a buy.

Final thoughts

Finding good stocks to buy can be a challenge, but it is also very important to know which stocks to avoid and which to hold. Stay as far away from J.C. Penney Company, Inc. (NYSE:JCP) as you can. If you already own Macy’s, Inc. (NYSE:M) or Dillard’s, Inc. (NYSE:DDS), hold on to these stocks for now as this should be a good year for both of these companies. None of the three stocks are strong buys right now, though.

The article Are Any Retailers Worth a Buy? originally appeared on and is written by Austin Higgins.

Austin Higgins has no position in any stocks mentioned. The Motley Fool owns shares of Dillard’s. Austin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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