WEB Dillards DDS Q2 Earnings Report: A Deep Dive
Headline Numbers
WEB Dillards DDS (NYSE: DDS) released its second-quarter 2024 financial results on August 23, 2023, after the market closed. The company reported quarterly earnings of $4.59 per share, falling short of the Zacks Consensus Estimate of $5.91 per share, a -22.34% surprise. Revenue for the quarter came in at $15,674 million, a 2.49% increase year-over-year and surpassing the consensus estimate by 13%.
Key Metrics
- **Total revenue:** $15,674 million, down 13% year-over-year. - **Diluted EPS:** $4.59, a -22.34% surprise below the Zacks Consensus Estimate. - **Comparable store sales:** Decreased 3.5% year-over-year. - **Digital sales:** Increased 5.1% year-over-year. - **Gross margin:** 37.6%, down 10 basis points year-over-year. - **Operating income:** $1,296 million, down 14.3% year-over-year. - **Net income:** $840 million, down 15.6% year-over-year.
Analyst Commentary
Analysts have mixed reactions to WEB Dillards DDS's Q2 results. Some analysts maintain a positive outlook, citing the company's strong digital sales growth and its ability to manage costs effectively. Others are more cautious, expressing concerns about the ongoing decline in comparable store sales and the impact of macroeconomic headwinds.
Outlook
For the fiscal second quarter, the Zacks Consensus Estimate is pegged at $5.91 per share. This represents a -22.34% decrease from the prior-year quarter. The company has not provided specific guidance for the full fiscal year.
Conclusion
WEB Dillards DDS's Q2 results were a mixed bag, with revenue beating expectations but earnings falling short. The company faces challenges in its core department store business, but its digital sales growth and cost management efforts provide some optimism. Investors should continue to monitor the company's performance in the coming quarters to assess its ability to navigate the current retail environment.
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