CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
DDS posted normalized Q1 FY 26 (Jan.) EPS of $10.95 vs. $10.36 in the prior year, $1.09 above consensus estimates, on total retail sales of $1.518B, advancing 3% on both a total and comparable store basis. Retail gross margin expanded 30 bps to 45.8%, supported by strength across multiple merchandise categories, particularly home and furniture, ladies' accessories and lingerie, and shoes. The company continues to operate efficiently and commands a much higher multiple than peers, with shares trading at 17x consensus FY 27 EPS estimates. The retailer opened a new 160,000 square foot store in Ohio, bringing its total footprint to 272 locations across 30 states. Operating expenses increased to 28.3% of sales vs. 27.6% in the prior year, primarily due to elevated payroll costs, though the company maintained a strong cash position of $1.158B, up 28.5% Y/Y. We are impressed with the strong comparable store sales growth and believe store count growth represents the next leg of growth for the company.