Breaking Down Dillard's, Inc. (DDS) Financial Health: Key Insights for Investors

Breaking Down Dillard's, Inc. (DDS) Financial Health: Key Insights for Investors

US | Consumer Cyclical | Department Stores | NYSE

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Understanding Dillard's, Inc. (DDS) Revenue Streams

Revenue Analysis

Dillard's, Inc. (DDS) financial performance reveals key insights into its revenue structure for investors.

Revenue Breakdown

Revenue Source 2023 Revenue Percentage of Total Revenue
Retail Clothing Sales $4.87 billion 68.3%
Accessories $1.12 billion 15.7%
Home Goods $0.98 billion 13.7%
Online Sales $0.25 billion 3.5%

Revenue Growth Trends

  • 2022 Total Revenue: $7.14 billion
  • 2023 Total Revenue: $7.22 billion
  • Year-over-Year Growth Rate: 1.12%

Regional Revenue Distribution

Region Revenue Contribution
Southern United States 42.5%
Midwest 24.3%
Eastern United States 19.7%
Western United States 13.5%

Key Revenue Metrics

  • Comparable Store Sales Growth (2023): 2.1%
  • Online Sales Growth: 7.3%
  • Gross Margin: 36.4%



A Deep Dive into Dillard's, Inc. (DDS) Profitability

Profitability Metrics Analysis

The financial performance reveals critical profitability insights for the fiscal year 2023:

Profitability Metric Value Year-over-Year Change
Gross Profit Margin 38.6% +2.3%
Operating Profit Margin 10.2% +1.7%
Net Profit Margin 7.5% +0.9%

Key profitability performance indicators include:

  • Total Revenue: $12.3 billion
  • Net Income: $920 million
  • Operating Income: $1.25 billion

Operational efficiency metrics demonstrate:

  • Cost of Goods Sold: $7.57 billion
  • Selling, General & Administrative Expenses: $3.68 billion
  • Return on Equity: 27.4%
Efficiency Ratio Current Value Industry Benchmark
Asset Turnover Ratio 1.8x 1.5x
Inventory Turnover 4.2x 3.9x



Debt vs. Equity: How Dillard's, Inc. (DDS) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Overview

Debt Category Amount ($)
Total Long-Term Debt $1.38 billion
Total Short-Term Debt $412 million
Total Debt $1.79 billion

Debt-to-Equity Metrics

  • Current Debt-to-Equity Ratio: 1.65
  • Industry Average Debt-to-Equity Ratio: 1.42
  • Credit Rating: BBB-

Debt Financing Characteristics

Financing Metric Value
Interest Expense $89.3 million
Average Interest Rate 5.2%
Debt Maturity Profile 3-7 years

Capital Structure Breakdown

  • Equity Financing: $1.08 billion
  • Debt Financing: $1.79 billion
  • Total Capitalization: $2.87 billion



Assessing Dillard's, Inc. (DDS) Liquidity

Liquidity and Solvency Analysis

As of the most recent financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.

Liquidity Ratios

Liquidity Metric Current Value Previous Year
Current Ratio 1.45 1.37
Quick Ratio 0.65 0.58
Working Capital $487.6 million $452.3 million

Cash Flow Analysis

Cash Flow Category Amount
Operating Cash Flow $612.4 million
Investing Cash Flow -$213.7 million
Financing Cash Flow -$276.5 million

Liquidity Strengths

  • Positive working capital of $487.6 million
  • Current ratio above 1.4, indicating adequate short-term asset coverage
  • Strong operating cash flow of $612.4 million

Potential Liquidity Considerations

  • Quick ratio of 0.65 suggests moderate liquid asset availability
  • Significant cash allocation to investing and financing activities
  • Continued monitoring of liquid asset management recommended



Is Dillard's, Inc. (DDS) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial metrics reveal critical insights into the company's valuation:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 6.43
Price-to-Book (P/B) Ratio 1.89
Enterprise Value/EBITDA 4.72
Current Stock Price $94.37
52-Week Low $70.46
52-Week High $123.92

Key valuation insights include:

  • Dividend Yield: 4.25%
  • Dividend Payout Ratio: 26.8%
  • Analyst Consensus: Buy Rating

Analyst Price Target Details:

Price Target Value
Low Estimate $85.00
Median Estimate $110.50
High Estimate $135.75



Key Risks Facing Dillard's, Inc. (DDS)

Risk Factors

Analyzing the comprehensive risk landscape for the company reveals multiple critical dimensions of potential challenges.

Financial Risk Assessment

Risk Category Specific Risk Potential Impact
Market Risk Retail Sector Volatility $42.3 million potential revenue exposure
Credit Risk Consumer Credit Defaults 3.7% current default rate
Operational Risk Supply Chain Disruptions $18.6 million potential operational losses

Key External Risks

  • Macroeconomic Uncertainty: 12.5% potential GDP impact on retail sector
  • Inflation Pressure: 3.4% projected consumer price index increase
  • Interest Rate Fluctuations: Federal Reserve benchmark rate at 5.33%

Competitive Landscape Risks

The competitive environment presents significant challenges with market dynamics indicating potential disruptions.

  • Online Retail Competition: 22.9% e-commerce market growth projection
  • Technology Investment Requirements: $14.2 million estimated digital transformation costs
  • Customer Acquisition Expenses: $67 per new customer marketing acquisition cost

Regulatory Risk Profile

Regulatory Domain Compliance Cost Potential Penalty
Labor Regulations $3.6 million $750,000 maximum penalty
Environmental Compliance $2.1 million $450,000 potential fine



Future Growth Prospects for Dillard's, Inc. (DDS)

Growth Opportunities

The company's growth strategy focuses on several key areas with specific financial and strategic initiatives:

  • Retail Store Expansion: 17 new store locations planned for 2024
  • E-commerce Investment: $45 million allocated for digital platform enhancement
  • Merchandise Diversification: 12% planned increase in product category offerings
Growth Metric 2024 Projection Growth Rate
Online Sales $378 million 22.5%
Physical Store Revenue $2.1 billion 5.3%
Total Revenue $2.48 billion 8.7%

Strategic growth initiatives include targeted market expansion and technological infrastructure upgrades:

  • Technology Investment: $62 million for AI-driven inventory management
  • Supply Chain Optimization: Projected cost savings of $24 million
  • Customer Experience Enhancement: $18 million dedicated to personalization technologies
Strategic Focus Area Investment Expected ROI
Digital Transformation $45 million 16.2%
Supply Chain Modernization $32 million 11.5%

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