Dillard's: Negative Outlook On Topline, Margins

JHVEPhoto Investment summary My recommendation for Dillard's (NYSE:DDS) is a hold rating. I have a negative outlook for the business over the near term, as the macro backdrop remains unfavorable and has already shown its impact on SSSG. The growing inventory on DDS balance sheet is also worrisome, which I see as a downside risk for 2H24 gross margin performance. The stock's valuation is also not trading at a cheap level, which justifies me taking the risk. Business overview DDS is a retailer that sells cosm ...