Why Dillard's Stock Jumped Today
Key Points
Solid sales and margin expansion are driving Dillard's profits higher.
Stock buybacks are turbocharging shareholders' gains.
- 10 stocks we like better than Dillard's ›
Shares of Dillard's (NYSE: DDS) surged on Thursday after the department store chain reported impressive fiscal third-quarter sales and earnings.
As of 1:40 p.m. ET, Dillard's stock price was up more than 16%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Dillard's enjoyed healthy consumer spending in a challenging economic environment
Dillard's total retail sales rose by 3% to $1.4 billion in the quarter ended Nov. 1. The gains were driven by a 3% rise in comparable-store sales.
The retailer saw solid growth in sales of ladies' apparel and accessories, as well as children's apparel, during the quarter.
Efficient inventory management helped Dillard's retail gross margin improve to 45.3%, up from 44.5% in the prior-year period. The company's net income, in turn, increased by 4% to $129.8 million. Stock buybacks contributed to a 7.5% jump in earnings per share to $8.31, which was well above Wall Street's estimates.
Management is allocating capital effectively
Dillard's share repurchases have amplified shareholder value creation. Over the 39 weeks ending on Nov. 1, the retailer scooped up roughly 300,000 shares for $107.8 million, or $359.16 per share. With the stock currently trading north of $700 following today's gains, these purchases have been an excellent use of shareholder capital.
Should you invest $1,000 in Dillard's right now?
Before you buy stock in Dillard's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dillard's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $624,230!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,187,967!*
Now, it’s worth noting Stock Advisor’s total average return is 1,069% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of November 10, 2025
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
