Deutsche Bank analyst Paul Trussell lowered his estimates and price target for Dillard's following the company's Q1 results. A "steep merchandise margin decline" drove the earnings, and elevated inventory levels at quarter-end are likely to pressure the company's Q2, Trussell tells investors in a research note titled "Numbers Heading South." He expects Dillard's FY16 earnings to decrease 15% following FY15's 13% decline, and does no not expect a rebound to positive territory in FY17. The analyst reiterates a Sell rating on Dillard's with a lowered price target of $55.