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Dillard's Shares Tumble on Flat Earnings, Analyst Cuts Price Target

The Street logo The Street 5/16/2019 M. Corey Goldman
a man standing in front of a store: Dillard's Shares Tumble on Flat Earnings, Analyst Cuts Price Target © TheStreet Dillard's Shares Tumble on Flat Earnings, Analyst Cuts Price Target

Shares of Dillard's fell more than 10% on Thursday after the department store chain reported earnings that were flat with a year earlier.

The earnings report prompted analysts at Wedbush Securities to cut their price target for the second time in a month.

Dillard's said net income for its first quarter ended May 4 was $78.6 million, or $2.99 a share, vs. $80.5 million, or $2.89 a share in the comparable year-earlier quarter. Analysts polled by FactSet had been expecting earnings of $2.84 a share.

Revenue was $1.47 billion compared to $1.46 billion. Retail gross margins, an indicator of the cost of stocking shelves with goods vs. revenue from sales, dropped 141 basis points, the company said.

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— Dillard's (@Dillards) May 15, 2019

The lackluster results spurred Wedbush analysts to cut their target price on the stock to $55 from $65, their second price-target reduction in less than a month.

On April 22, Wedbush lowered its rating on the company to underperform from neutral and reduced its 12-month price target to $65.

Shares of Dillard's tumbled 10.42%, or $4.95, to $56.84 in Thursday afternoon trading on the New York Stock Exchange. The stock has fallen nearly 17% over the past month.

This article was originally published by TheStreet.

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