STOCK OF THE WEEK: DILLARDS

Stock of the Week: Dillards: A NICE SHOPPING EXPERIENCE

Dillard's, Inc., located in Little Rock, Arkansas ranks among the nation’s largest fashion apparel and home furnishings retailers. Dillard's stores offer a broad selection of merchandise from wardrobe basics to home furnishings, including products sourced and marketed under Dillard's exclusive brand names. They focus on delivering maximum value to their shoppers, with fairly priced merchandise complemented by exceptional customer service.

The largest nameplate in fashion apparel retailing, the Company comprises 329 stores, spanning 29 states, all operating with one (family) name - Dillard's. They also have an appealing On-Line shopping site

William T. Dillard founded the company in 1938 and took it public on May 9, 1969. Trading on the NYSE (DDS) today (June 23st) at $24.60. Upon his death in 2002, he left a legacy of tremendous success in retailing. Today, a major part of Dillard's marketing philosophy remains based on Mr. Dillard's sound selling methods, keen attention of day-to-day organizational details, alert selection of personnel and hard work.

On March 10, 2005 Dillard's, Inc. announced operating results for its fourth quarter and fiscal year ending January 29, 2005. Net income for the 52 weeks ending January 29, 2005 was up 1.6 % over 2004 or $117.6 million

Accomplishments during the 52 weeks ended January 29, 2005 include reduction of debt to $1.64 billion from $2.62 billion (including Guaranteed Preferred Beneficial Interests in the Company's Subordinated Debentures), with cash and cash equivalents at January 29, 2005 of $498.2 million compared to $160.9 million at January 31, 2004.


Dillard's continues to focus on improvement in its merchandise mix as it reiterates management's strong belief that merchandise differentiation with special emphasis on becoming a more upscale retailer is crucial to its future success in the marketplace. The Company seeks to build and maintain customer loyalty by presenting more exciting fashion choices reflective of a younger-focused and more upscale attitude.

The Company provides merchandise from both national and their private label sources. Under-performing lines of product will continue to be eliminated and replaced with more promising brands in the Company's ongoing efforts to improve its merchandise mix. Dillard's will continue to tailor these assortments to the local demographics, reflecting not only each specific market's culture and fashion attitude but also each store's specific sizing and style needs.

Penetration of private brand merchandise as a percentage of sales for the 52 weeks ending January 29, 2005 and January 31, 2004 was 23.1% and 20.9%, respectively.

Fourth Quarter sales in the Company's Eastern region were above trend, exceeding the Company's average sales performance for the period. Sales in the Western region were slightly above trend, and sales in the Central region were below trend. Sales of lingerie and accessories significantly exceeded the Company's average sales trend for the period. However, sales of juniors' apparel, decorative home merchandise and furniture were significantly below trend.

On June 2nd, Dillard's, Inc. announced their sales for the four weeks ending May 28, 2005 were $518,965,000 compared to sales for the four weeks ending May 29, 2004 of $511,413,000. Sales increased 1% for the four-week period.

Retail is the second-largest industry in the United States both in number of establishments and number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually, approximately $11,690 per capita. The retail sector is also one of the largest worldwide. (retailindustry.about.com/)

Dillard's is a well-known brand with a strong presence in the markets in which it operates.
With Private-label items accounting for around 23% of sales, Dillard's hopes to differentiate itself from the competition while benefiting from the higher profit margins that come with private-label products, which cost less for Dillard's to offer.

Some feel that a turnaround could only be possible for Dillard’s under new or reinvigorated management. Yet, with the same family controlling both senior management and the board, can Dillard's win back customers who prefer to shop at Specialty Retailers and Discounters located off the mall? With fluctuating prices of gas at the pumps, maybe Dillard’s should look outside the “mall” and promote their savvy web-site for shopping On-Line. I’m a Dillard’s shopper and didn’t know I could shop from home.

STOCK OF THE WEEK: DILLARDS

Stock of the Week: Dillards: A NICE SHOPPING EXPERIENCE

Dillard's, Inc., located in Little Rock, Arkansas ranks among the nation’s largest fashion apparel and home furnishings retailers. Dillard's stores offer a broad selection of merchandise from wardrobe basics to home furnishings, including products sourced and marketed under Dillard's exclusive brand names. They focus on delivering maximum value to their shoppers, with fairly priced merchandise complemented by exceptional customer service.

The largest nameplate in fashion apparel retailing, the Company comprises 329 stores, spanning 29 states, all operating with one (family) name - Dillard's. They also have an appealing On-Line shopping site

William T. Dillard founded the company in 1938 and took it public on May 9, 1969. Trading on the NYSE (DDS) today (June 23st) at $24.60. Upon his death in 2002, he left a legacy of tremendous success in retailing. Today, a major part of Dillard's marketing philosophy remains based on Mr. Dillard's sound selling methods, keen attention of day-to-day organizational details, alert selection of personnel and hard work.

On March 10, 2005 Dillard's, Inc. announced operating results for its fourth quarter and fiscal year ending January 29, 2005. Net income for the 52 weeks ending January 29, 2005 was up 1.6 % over 2004 or $117.6 million

Accomplishments during the 52 weeks ended January 29, 2005 include reduction of debt to $1.64 billion from $2.62 billion (including Guaranteed Preferred Beneficial Interests in the Company's Subordinated Debentures), with cash and cash equivalents at January 29, 2005 of $498.2 million compared to $160.9 million at January 31, 2004.


Dillard's continues to focus on improvement in its merchandise mix as it reiterates management's strong belief that merchandise differentiation with special emphasis on becoming a more upscale retailer is crucial to its future success in the marketplace. The Company seeks to build and maintain customer loyalty by presenting more exciting fashion choices reflective of a younger-focused and more upscale attitude.

The Company provides merchandise from both national and their private label sources. Under-performing lines of product will continue to be eliminated and replaced with more promising brands in the Company's ongoing efforts to improve its merchandise mix. Dillard's will continue to tailor these assortments to the local demographics, reflecting not only each specific market's culture and fashion attitude but also each store's specific sizing and style needs.

Penetration of private brand merchandise as a percentage of sales for the 52 weeks ending January 29, 2005 and January 31, 2004 was 23.1% and 20.9%, respectively.

Fourth Quarter sales in the Company's Eastern region were above trend, exceeding the Company's average sales performance for the period. Sales in the Western region were slightly above trend, and sales in the Central region were below trend. Sales of lingerie and accessories significantly exceeded the Company's average sales trend for the period. However, sales of juniors' apparel, decorative home merchandise and furniture were significantly below trend.

On June 2nd, Dillard's, Inc. announced their sales for the four weeks ending May 28, 2005 were $518,965,000 compared to sales for the four weeks ending May 29, 2004 of $511,413,000. Sales increased 1% for the four-week period.

Retail is the second-largest industry in the United States both in number of establishments and number of employees. The U.S. retail industry generates $3.8 trillion in retail sales annually, approximately $11,690 per capita. The retail sector is also one of the largest worldwide. (retailindustry.about.com/)

Dillard's is a well-known brand with a strong presence in the markets in which it operates.
With Private-label items accounting for around 23% of sales, Dillard's hopes to differentiate itself from the competition while benefiting from the higher profit margins that come with private-label products, which cost less for Dillard's to offer.

Some feel that a turnaround could only be possible for Dillard’s under new or reinvigorated management. Yet, with the same family controlling both senior management and the board, can Dillard's win back customers who prefer to shop at Specialty Retailers and Discounters located off the mall? With fluctuating prices of gas at the pumps, maybe Dillard’s should look outside the “mall” and promote their savvy web-site for shopping On-Line. I’m a Dillard’s shopper and didn’t know I could shop from home.

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