S&P downgrades Dillard’s

S&P said it downgraded Dillard’s Inc. to BB from BB+ citing weak operating results for the holiday season and for 2019.

“Fourth quarter and 2019 results were weaker than our expectations, and headwinds will persist. Dillard's has experienced a significant deterioration in profitability with adjusted EBITDA margins of less than 7% in 2019, declining by nearly half in the last five years. We expect margins to remain weak over the next couple of years as Dillard's contends with fragile mall traffic trends, intense competition, increasing-price transparency and an uneven economic backdrop,” said S&P in a press release.

The outlook is stable.

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