Monday, March 01, 2010

Dillards So Now What?

Dillard’s (DDS) reported some excellent numbers for Q4 and the stock jumped dramatically, go figure. Good news from a retailer. Good news from Dillard’s. The market does not normally look to Dillard’s as a retail leader. But look at its balance sheet. Inventories are down. No short term debt. Cash positions are around $300 million. This is approximately 50% of their current long term debt position.

Dillard’s Chairman of the Board and Chief Executive Officer, William Dillard, II, commented “Moving ahead, we will maintain our disciplined approach to these areas while effecting continued merchandise mix improvements to further strengthen our appeal to the Dillard’s customer.”

Dullards is in a unique position. Will it pay down debt dramatically and have a bullet proof balance sheet? Will it increase the dividend and reward shareholders? Will it make acquisitions of some description? Will it expand and open new stores?

The bigger question becomes: Does Dillard’s know there is a question and how are they working on it?