Before the bell sounded this morning, Dillard's Inc. (DDS - 50.05) took its turn in the earnings confessional. DDS reported a third-quarter profit of $26.6 million, or 50 cents per share, compared to a year-ago profit of $14.4 million, or 22 cents per share. Revenue, meanwhile, increased 2.9% to land at $1.38 billion. Following in the footsteps of fellow retailers Kohl's (KSS) and Macy's (M) , the results came in better than expected, as analysts, on average were projecting earnings of 32 cents per share on revenue of $1.37 billion.
It is DDS' unchanged gross margin -- or how profitable the products being sold are -- that Wall Street is focusing on today, with the shares down around 8% at mid-day. The stagnant quarterly gross margin is haunting the Arkansas-based retailer yet again, as it did when the stock gapped significantly lower on the heels of its second-quarter earnings in August. Overall, the security has enjoyed a hefty 45% year-to-date gain.
It appears, however, that options players have been bullish toward the stock over the last two weeks. DDS' 10-day International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) call/put volume ratio of 2.26 shows a distinct preference for calls bought to open over puts. This ratio ranks higher than 81% of similar readings taken over the past year, indicating that bullish bets have been picked up over bearish at an accelerated clip.
The Case for Big Moves in IWM and QQQ
Featured Partners: AOL DailyFinance
© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242
Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: firstname.lastname@example.org
All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.
Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.