Overview

* Dillard's Q2 revenue rises 1% yr/yr, beating analysts' expectations, per LSEG data

* Net income beats estimates at $72.8 mln, per LSEG data

* EPS for Q2 exceeds expectations at $4.66, per LSEG data

Outlook

* Company estimates 2025 capital expenditures at $120 mln

* Company expects 2025 depreciation and amortization to be $180 mln

Result Drivers

* SALES INCREASE - Dillard's reports 1% rise in total retail sales, driven by juniors' and children's apparel and ladies' accessories and lingerie

* INVENTORY CONTROL - Ending inventory increased 2%, reflecting improved management compared to previous quarter's 6% rise

* GROSS MARGIN DECLINE - Retail gross margin decreased slightly, notably in ladies' apparel, despite moderate improvement in shoes and ladies' accessories

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $1.51 $1.50

Revenue bln bln (3

Analysts

)

Q2 Net Beat $72.80 $53.90

Income mln mln (3

Analysts

)

Q2 38.1%

Retail

Gross

Margin

Q2 Basic Beat $4.66 $3.44 (3

EPS Analysts

)

Q2 Beat $94.60 $71 mln

Pretax mln (3

Profit Analysts

)

Q2 $434.20

Operatin mln

g

Expenses

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

* The average consensus recommendation for the department stores peer group is "buy."

* Wall Street's median 12-month price target for Dillard's Inc is $310.00, about 60.6% below its August 13 closing price of $497.93

* The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)