UBS sees ‘significant sales and margin deceleration’ for Dillard’s

UBS analyst Mauricio Serna thinks consumer spending will deteriorate in the near-term, leading to “significant sales and margin deceleration” for Dillard’s. And over the long-term, Street estimates underestimate the pressure on the company’s earnings from share loss to other channels with a more appealing value proposition, the analyst tells investors in a research note. The firm’s fiscal 2023 earnings estimate is 30% below consensus and it keeps a Sell rating on the shares with a $160 price target. UBS believes Dillard’s earnings will fall at a faster rate than Street expectations.