Dillard's Inc. (DDS), the leading apparel and home-furnishing retailer in the United States, reported a growth of 6.0% in same-store sales for the five weeks ended July 2, 2011. Merchandise sales for the period shot up 5.0% to $531.4 million compared with $506.4 million in the five weeks ended July 2, 2011.
Both comparable store sales and total sales increased 3% for the 22 weeks ended July 2, 2011. The sales movement was at par with the average total company trend in the Central region while coming in below trend in the Western and Eastern regions. Category wise, sales in the home and furniture category were substantially below trend for the period.
Kohl's Corporation (KSS), which competes with Dillard's, reported a positive 7.5% growth in June same-store sales, with total sales increasing 9.2%. Another peer, J.C. Penney Company Inc. (JCP), also reported an increase of 2.0% in same-store sales with total sales falling 0.3% in June 2011. Same-store sales of another competitor Macy's Inc. (M) increased 6.7% for June while total sales climbed 7.5%.
Based in Little Rock, Arkansas, Dillard's Inc. is a large departmental store chain in the United States featuring fashion apparel and home furnishings. The company currently operates 306 stores and 9 clearance centers across 29 states, all under the Dillard's brand name. Dillard's Inc.'s stores are mainly located in the Southwest, Southeast and Midwest regions of the US.
The company's primary product categories include: women's and junior's apparel; shoes; accessories and lingerie; men's clothing and accessories; cosmetics; home; and children's clothing. Its merchandise mix consists of both branded and private-label items.
Dillard's shares maintain a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.
DILLARDS INC-A (DDS): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
KOHLS CORP (KSS): Free Stock Analysis Report
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