Dillard's Inc. (DDS) shares jumped 6% in Monday trading after the department store retailer was upgraded to neutral from underperform at J.P. Morgan. Dillard's price target was moved to $62 from $58. Analysts say Dillard's merchandise has moved "upscale" to target customers at a higher-income demographic and with items that fill the space between Macy's Inc. (M) and Nordstrom Inc. (JWN) Margins have improved, and analysts think the bankruptcies and store closures across the retail sector are "elevating Dillard's importance to national vendors which should also help stabilize gross margins." Still mall traffic declines and e-commerce competition are a limit to top-line growth. Dillard's shares have gained 15.1% over the last year while the S&P 500 index has slumped 7.1% for the period.
-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 07, 2019 10:55 ET (15:55 GMT)
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