DDS

Dillard's Inc. DDS delivered a mixed second-quarter fiscal 2026 performance, with earnings comfortably surpassing the Zacks Consensus Estimate despite a modest revenue miss. Improving retail sales, positive comparable-store sales and gross-margin expansion supported the bottom line, while a sizable tariff refund provided an additional boost. The department-store operator also exited the quarter with more than $1.2 billion in cash and short-term investments after reducing debt.Dillard's shares have gained 11.6% over the past three months compared with the Retail - Regional Department Stores industry's 12.1% rise. Image Source: Zacks Investment Research Dillard's reported second-quarter fiscal 2026 earnings of $6.25 per share, which increased 34.1% from $4.66 in the year-ago quarter and surpassed the Zacks Consensus Estimate of $4.04 by 54.7%. Net income increased to $97.7 million from $72.8 million a year earlier.Net sales of $1.508 billion declined slightly from $1.514 billion in the prior-year quarter and missed the Zacks Consensus Estimate by roughly 0.7%. However, the company's core retail business remained resilient. Total retail sales, which exclude the CDI Contractors construction business, increased 1% to $1.455 billion, while comparable-store sales also advanced 1%.Performance across merchandise categories was mixed. Ladies' accessories and lingerie registered significant sales growth, while home and furniture posted moderate increases. Shoes, men's apparel and accessories, and cosmetics recorded slight gains. Conversely, juniors' and children's apparel and ladies' apparel witnessed moderate declines.Profitability was one of the major highlights of the quarter. Retail gross margin expanded to 40.9% of sales from 38.1% in the prior-year quarter. However, the improvement received a substantial 260-basis-point benefit from $37.2 million in refunds associated with International Emergency Economic Powers Act tariffs. Dillard's does not expect additional significant IEEPA tariff refunds.Dillard's financial position remains one of the strongest elements of its investment case. The company ended the fiscal second quarter with $763.1 million in cash and cash equivalents and $497.7 million in short-term investments, bringing combined liquidity from these two categories to roughly $1.26 billion. Dillard's continues to demonstrate resilience despite an uncertain consumer environment. A 1% increase in both total retail sales and comparable-store sales indicates that demand remains stable, even as performance varies across merchandise categories. Management described the consumer as "somewhat resilient," with sales growth and higher gross margin supporting cash generation during the quarter.The company's merchandise strategy also remains positive. Significant sales growth in ladies' accessories and lingerie, along with gains in home and furniture, shoes, men's apparel and accessories, and cosmetics, demonstrates that Dillard's continues to find pockets of demand across its assortment.Another important strength is Dillard's track record of earnings outperformance. Following the second-quarter beat, the company has surpassed consensus earnings estimates in each of the past several quarters. The latest quarter delivered a 54.7% positive earnings surprise, following a 58.3% beat in the fiscal first quarter.Dillard's cash-heavy balance sheet adds another layer of protection. More than $1.2 billion in cash and short-term investments, combined with ongoing debt reduction, gives management considerable flexibility to navigate an uneven retail environment while continuing to invest in the business. Despite the encouraging second-quarter performance, several risks warrant attention.First, the quality of the gross-margin improvement requires some caution. The $37.2 million tariff refund boosted retail gross margin by 260 basis points and added $1.82 per share to fiscal second-quarter earnings. Since management does not expect additional significant IEEPA refunds, Dillard's will need underlying merchandising and pricing performance to carry a greater share of profit growth in upcoming quarters.Second, operating costs are rising. SG&A expenses increased 2.2% year over year, while operating expenses as a percentage of sales increased 70 basis points to 29.4%. Continued increases in payroll and related costs could pressure operating leverage if sales growth remains modest.Inventory also deserves attention. Merchandise inventories increased roughly 5% year over year compared with just 1% growth in quarterly retail sales. If consumer demand slows, elevated inventory levels could result in heavier promotional activity and create pressure on future gross margins.Finally, broader risks remain, including inflation, shifts in consumer spending, competitive pressure from specialty, off-price and online retailers, higher labor costs, tariffs and potential disruptions to international trade and supply chains. Dillard's exited the fiscal second quarter with several positives working in its favor. Comparable sales remained positive, retail gross margin improved, earnings comfortably topped expectations and the company maintained an exceptionally strong liquidity position while paying down debt.The investment case is not without risks. A meaningful portion of fiscal second-quarter profit improvement came from a tariff refund that is unlikely to recur, while inventory growth and higher payroll expenses warrant monitoring. Uneven category trends and continued uncertainty surrounding consumer spending also limit the visibility of sustained top-line acceleration.Still, Dillard's healthy balance sheet, resilient retail demand, strong earnings-surprise history, reasonable forward valuation and improving earnings outlook provide a favorable risk-reward setup. With DDS currently carrying a Zacks Rank #2 (Buy), the stock appears worth buying for investors seeking exposure to a financially strong retailer while keeping a close watch on underlying gross margins and inventory trends in the quarters ahead. Macy's Inc. M is an omnichannel retail organization operating stores, websites and mobile applications under three nameplates: Macy’s, Bloomingdale’s and Bluemercury. The company currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.The Zacks Consensus Estimate for Macy's current financial-year sales and earnings indicates a decline of 0.01% and 5.6%, respectively, from the year-ago numbers. Macy's delivered a trailing four-quarter earnings surprise of 211%, on average.Urban Outfitters Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings indicates growth of 8.8% and 12.7%, respectively, from the year-ago reported numbers. URBN delivered a trailing four-quarter earnings surprise of 12.2%, on average.Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and earnings is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Walmart Inc. WMT reported second-quarter fiscal 2027 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. Results benefited from e-commerce, advertising and membership growth, along with tariff refunds, partly offset by price investments. Adjusted earnings were 81 cents per share, up 19.1% from the year-ago quarter’s 68 cents. The bottom line beat the Zacks Consensus Estimate of 73 cents. Reported earnings per share were 80 cents compared with 88 cents in the prior-year quarter. Walmart Inc. price-consensus-eps-surprise-chart | Walmart Inc. Quote Total revenues increased 5.9% year over year to $187.9 billion and topped the Zacks Consensus Estimate of $186.3 billion. On a constant-currency basis, revenues rose 5.1%. Net sales jumped 5% at cc, backed by strength in all units.Global e-commerce sales advanced 23%, driven by store-fulfilled pickup and delivery services along with marketplace expansion. Walmart’s global advertising business rose 38%, while Walmart U.S. advertising revenues increased 38%. Global membership fee revenues climbed 17%.The consolidated gross profit rate improved 96 basis points (bps) year over year to 25.4%. Walmart U.S. led the improvement, primarily due to tariff refunds, while favorable business mix from global advertising also helped. Price investments and higher fuel costs in distribution and fulfillment partly offset the gains. Adjusted operating income at constant currency rose 17.4% to $9.25 billion. Walmart U.S.: Net sales increased 3.5% year over year to $125.2 billion. Comparable sales, excluding fuel, rose 2.6%, driven by a 1.5% increase in transactions and a 1.1% rise in average ticket. E-commerce contributed roughly 510 bps to comp sales growth. E-commerce sales surged 24%, supported by approximately 43% growth in store-fulfilled delivery, strong marketplace expansion and advertising momentum. Marketplace sales rose nearly 52%. Expedited deliveries completed in less than three hours represented around 37% of store-fulfilled orders. Walmart Connect revenues increased 43% excluding VIZIO. Operating income increased 20.6% to $8.1 billion, benefiting from higher gross profit, improved e-commerce economics and higher Walmart+ membership fee revenue.Walmart International: Net sales increased 12.8% year over year to $35.2 billion. On a constant-currency basis, sales rose 7.9%. Currency fluctuations positively impacted reported sales by roughly $1.5 billion. E-commerce sales advanced 19%, led by store-fulfilled pickup and delivery services. Membership income increased 28%. The advertising business grew 20%, fueled by Flipkart Ads.China remained a standout market, with net sales in constant currency increasing 20.7% and e-commerce sales growing 26%. Operating income increased 16.6% to $1.4 billion. On a constant-currency basis, operating income rose 5.7%, benefiting from lower e-commerce losses and favorable business mix changes across markets.Sam’s Club U.S.: Net sales increased 8.8% year over year to $25.7 billion, while net sales excluding fuel rose 4.5%. Comparable sales excluding fuel grew 4.4%, supported by a 7% increase in transactions despite a 2.5% decline in average ticket. E-commerce sales rose 26%, driven by continued strength in club-fulfilled pickup and delivery. E-commerce contributed around 450 bps to comparable sales growth and represented roughly 20% of net sales excluding fuel.Membership and other income increased 6%, aided by growth in member counts and Plus memberships.Adjusted operating income edged up 23.3% to $678 million, reflecting benefits from tariff refunds and continued strong membership growth. Adjusted operating income growth also excluded the impact of discrete reorganization charges recorded in the prior-year period. Walmart ended the quarter with cash and cash equivalents of $11.5 billion and total debt of $57.2 billion. For the six months ended July 31, operating cash flow increased to $19.7 billion. During the quarter, share repurchases totaled $3 billion for 25.7 million shares at an average price of $117.61 per share. The remaining repurchase authorization was $25.1 billion. For the third quarter of fiscal 2027, Walmart expects net sales growth of 3-3.75% at cc and operating income growth of 2-4% at cc. Adjusted earnings per share are projected in the range of 62-64 cents.Management raised fiscal 2027 guidance, calling for net sales growth of 4-5% at cc, compared with the prior forecast of 3.5-4.5%. The adjusted operating income is expected to increase 7-8.5% at cc for the year, up from the previous outlook of 6-8%. Walmart now expects adjusted EPS for fiscal 2027 to be in the $2.80-$2.87 range compared with prior guidance of $2.75-$2.85.Shares of this Zacks Rank #3 (Hold) company have gained 3.5% in the past month compared with the industry’s growth of 3.3%. Image Source: Zacks Investment Research Macy's Inc. M is an omnichannel retail organization operating stores, websites and mobile applications under three nameplates: Macy’s, Bloomingdale’s and Bluemercury. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Macy's current fiscal-year sales indicates growth of 0.1% from the year-ago numbers. Macy's delivered a trailing four-quarter earnings surprise of 211%, on average.Dillard’s, Inc. DDS is a fashion apparel and home furnishings retailer operating department stores across the United States. The company carries a Zacks Rank #2 at present. DDS delivered a trailing four-quarter earnings surprise of 35.8%, on average.The Zacks Consensus Estimate for Dillard’s current fiscal-year sales and earnings indicates growth of 2% and 8.4%, respectively, from the year-ago reported numbers. Urban Outfitters Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company currently carries a Zacks Rank of 2. URBN delivered a trailing four-quarter earnings surprise of 12.2%, on average. The Zacks Consensus Estimate for Urban Outfitters’ current fiscal-year sales and earnings indicates growth of 8.8% and 12.7%, respectively, from the year-ago reported numbers. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Walmart Inc. (WMT) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Dillard's, Inc. (DDS) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Last week’s earnings slate produced two distinctly different standout winners. Dillard’s DDS) showed that disciplined merchandising and a cash-heavy balance sheet can still create upside in department-store retail, while Lenovo Group LNVGY) demonstrated that its artificial intelligence strategy is expanding well beyond PCs and producing meaningful profit growth. That said, here’s a look at why investors may want to consider Dillard’s and Lenovo stock after crushing earnings expectations last Thursday. Dillard’s delivered fiscal second-quarter earnings of $6.25 per share, crushing consensus EPS estimates of $4.04 by nearly 55% and rising 34% year over year. Net income climbed to $97.7 million from $72.8 million. Although net sales slipped 0.4% YoY to $1.5 billion and missed consensus by 0.76%, retail sales excluding its construction operation advanced 1%, as did comparable-store sales. Comps also edged past analysts’ 0.9% forecast. Despite the sales miss, It’s noteworthy that Dillard’s has now exceeded earnings expectations for eight consecutive quarters, with a very impressive average EPS surprise of 35.82% in its last four quarterly reports Image Source: Zacks Investment Research The earnings quality for Q2 does require some context. A $37.2 million tariff refund contributed $1.82 per share and lifted retail gross margin by 260 basis points. Even after subtracting that benefit, Dillard's Q2 EPS was approximately $4.43—still well above the $4.04 consensus. Reported retail gross margin expanded to 40.9% from 38.1%, while sales were particularly healthy in ladies’ accessories and lingerie, home and furniture. Dillard’s does not anticipate additional significant tariff refunds, making underlying merchandising margins more important in coming quarters. Management didn't issue formal sales or EPS guidance, but maintained its fiscal 2026 assumptions for depreciation and amortization of $175 million, rentals of $18 million, net interest and debt income of $9 million, and capital expenditures (CapEx) of $120 million. That CapEx target is up from $93 million last year, signaling continued reinvestment despite an uneven consumer backdrop. Dillard’s balance sheet remains the chief attraction, ending Q2 with roughly $1.26 billion in cash and short-term investments after repaying $96 million of debt. Its current ratio stands at 3.03, indicating Dillard’s has more than twice the amount of assets to liabilities. Image Source: Zacks Investment Research Plus, Dillard’s return on equity (ROE) is nearly 32%, and shares trade at a very reasonable 16X forward earnings multiple, with FY26 EPS now expected to rise 6% to $35.26. Investors should nevertheless monitor the 5% inventory increase and a 70-basis-point rise in operating expenses as a percentage of sales during Q2. Image Source: Zacks Investment Research Lenovo’s results for its fiscal first quarter were even more emphatic. The PC giant posted Q1 earnings of $1.78 per share, crushing the 65-cent EPS consensus by nearly 174%, and soaring from $0.73 a year ago. This came as revenue surged 43% YoY to a record $26.94 billion, topping expectations of $23.27 billion by almost 16%. Adjusted net income soared 176% to $1.07 billion. A $1.69 billion noncash loss from warrant revaluation resulted in a reported net loss of $609 million, so the adjusted figures provide a clearer view of operating performance. Image Source: Zacks Investment Research Furthermore, AI-related revenue jumped 60% to $9.3 billion, representing 35% of total sales, while gross margin expanded 180 basis points to 16.5%. Lenovo’s Intelligent Devices Group generated $17.1 billion in revenue, up 27% YoY, and preserved a 7.1% operating margin. More importantly, Infrastructure Solutions revenue nearly doubled to $8.5 billion, producing a record operating profit of $777 million and a 9.1% margin. Most astonishing, Lenovo’s AI-server pipeline reached $54 billion, up 157% sequentially. Solutions and Services added another $2.9 billion in sales, with a record 24.2% operating margin and triple-digit gains in AI-services revenue. The company’s outlook provides a potent catalyst. Lenovo now expects to reach $100 billion in annual revenue during its current FY27, pulling that milestone forward from its prior two-year timetable. Image Source: Zacks Investment Research Management cited infrastructure demand, device pricing discipline, and expanding services as key supports. The $54 billion server pipeline is not equivalent to firm backlog, but its scale still points to a substantial opportunity in AI computing. Lenovo stock is no longer a deep-value name after its sharp year-to-date rally (+250 %), but LNVGY still trades at a reasonable 22X forward P/E multiple, and analysts now expect 26% EPS growth in FY27 followed by an 83% earnings surge in FY28, to $6.89 per share. An improving business mix is particularly encouraging as high-margin services and profitable infrastructure are reducing Lenovo’s dependence on the more cyclical PC market. Image Source: Zacks Investment Research Lenovo offers the faster EPS trajectory,  AI exposure, and clearer revenue guidance, while Dillard’s provides a more defensive, cash-rich setup at a lower earnings multiple. At the time of this writing, Lenovo stock currently sports a Zacks Rank #1 (Strong Buy), with Dillard’s landing a Zacks Rank #2 (Buy). Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Lenovo Group Ltd. (LNVGY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dillard's Inc. DDS delivered second-quarter fiscal 2026 results, wherein it surpassed the Zacks Consensus Estimate for earnings but fell slightly short on revenues. The company reported second-quarter fiscal 2026 earnings of $6.25 per share, which beat the Zacks Consensus Estimate of $4.04 by 54.7% and increased 34.1% year over year from $4.66.Net sales declined 0.4% year over year to $1.51 billion and missed the consensus mark of $1.52 billion by 0.7%.Shares of the Zacks Rank #3 (Hold) company have risen 13.9% in the past three months compared with the industry's 25.9% rally. Image Source: Zacks Investment Research DDS generated total retail sales of $1.455 billion in the fiscal second quarter compared with $1.447 billion in the prior-year quarter. Comparable store sales increased 1% for the same period. Our model had anticipated comps to rise 0.7% for the fiscal second quarter.Sales growth varied across merchandise categories. Ladies’ accessories and lingerie posted significant increases, while home and furniture delivered moderate growth. Shoes, men’s apparel and accessories, and cosmetics recorded slight increases, whereas juniors’ and children’s apparel and ladies’ apparel declined moderately. The company continued operating its store network of 272 Dillard’s locations, including 28 clearance centers, across 30 states, along with its internet store. Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote Dillard’s posted net income of $97.7 million, up from $72.8 million in the year-ago quarter. The company benefited from a retail gross margin of 40.9% of sales compared with 38.1% in the prior-year period.The retail gross margin included a positive impact of 260 basis points (bps) from $37.2 million in refunds related to International Emergency Economic Powers Act tariffs. Management does not expect additional significant IEEPA tariff refunds.The company’s consolidated gross margin improved to 39.7% of sales from 36.6% a year ago. The improvement helped offset higher operating expenses in the period. Our model anticipated a 20-bps expansion in the consolidated gross margin to 36.8%. Dillard’s reported operating expenses (SG&A) of $443.6 million compared with $434.2 million in the year-ago quarter. As a percentage of sales, operating expenses increased 70 bps year over year to 29.4% from 28.7% in the year-ago quarter.The increase was primarily driven by higher payroll and payroll-related expenses. Despite the cost pressure, stronger merchandise margins supported profitability and helped the company expand net income.We had expected a 130-bps increase in operating expenses, as a percentage of sales. DDS ended the quarter with cash and cash equivalents of $763.1 million, and short-term investments of $497.7 million. The company also reported merchandise inventories of $1.28 billion, up from $1.22 billion a year ago.The company paid off $96 million in debt in the first half of fiscal 2026. Long-term debt stood at $145.7 million at the end of the quarter compared with $225.6 million in the prior-year period.Stockholders’ equity increased to $2.12 billion from $1.92 billion a year ago. The stronger balance sheet provides additional financial flexibility as the company continues its operations and capital investments. Dillard’s maintained its fiscal 2026 outlook for certain financial statement items. The company expects depreciation and amortization of $175 million, rentals of $18 million, and net interest and debt income of $9 million for the 52 weeks ending Jan. 30, 2027.Capital expenditure is projected to be $120 million for fiscal 2026, whereas it reported $93 million in fiscal 2025. The company continues to evaluate spending plans based on current operating conditions. Macy's Inc. M is an omnichannel retail organization operating stores, websites and mobile applications under three nameplates: Macy’s, Bloomingdale’s and Bluemercury. The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The Zacks Consensus Estimate for Macy's current financial-year sales and earnings indicates a decline of 0.01% and 5.6%, respectively, from the year-ago numbers. Macy's delivered a trailing four-quarter earnings surprise of 211%, on average.Urban Outfitters Inc. URBN is a lifestyle products and services company that sells fashion apparel, accessories, footwear, home goods and related offerings through a portfolio of global consumer brands. The company currently carries a Zacks Rank of 2. The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and earnings indicates growth of 8.8% and 12.7%, respectively, from the year-ago reported numbers. URBN delivered a trailing four-quarter earnings surprise of 12.2%, on average. Boot Barn Holdings, Inc. BOOT is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company currently carries a Zacks Rank of 2.The Zacks Consensus Estimate for Boot Barn’s current financial-year sales and earnings is expected to rise 15.7% and 22.6%, respectively, from the year-ago reported figures. BOOT delivered a trailing four-quarter earnings surprise of 11.4%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Macy's, Inc. (M) : Free Stock Analysis Report Urban Outfitters, Inc. (URBN) : Free Stock Analysis Report Boot Barn Holdings, Inc. (BOOT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dillard's (DDS) came out with quarterly earnings of $6.25 per share, beating the Zacks Consensus Estimate of $4.04 per share. This compares to earnings of $4.66 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +54.70%. A quarter ago, it was expected that this department store operator would post earnings of $10.13 per share when it actually produced earnings of $16.04, delivering a surprise of +58.34%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Dillard's, which belongs to the Zacks Retail - Regional Department Stores industry, posted revenues of $1.51 billion for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.77%. This compares to year-ago revenues of $1.51 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Dillard's shares have added about 4.9% since the beginning of the year versus the S&P 500's gain of 13.2%. While Dillard's has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Dillard's was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.71 on $1.47 billion in revenues for the coming quarter and $35.26 on $6.61 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Regional Department Stores is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Kohl's (KSS), another stock in the same industry, has yet to report results for the quarter ended July 2026. The results are expected to be released on August 26. This department store operator is expected to post quarterly earnings of $0.56 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Kohl's' revenues are expected to be $3.52 billion, down 0.9% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report Kohl's Corporation (KSS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

It wasn’t much, but they’ll take it. Dillard’s Inc. reported early Thursday that total retail sales and comparable-store sales nudged ahead 1 percent in the second quarter ended Aug. 1. In the same period, tariff refunds helped push the company’s net income ahead 34 percent. More from WWD Birkenstock's Q3 Reflects Healthy Demand and Closed-toe Shoe Expansion Wolverine Posts Q2 Beat and Raises 2026 Outlook Tapestry's Annual Sales Hit $8B as Coach Continues to Drive Growth In the 13-week period, net income rose to $97.7 million, or $6.25 a share, compared to $72.8 million, or $4.66 a share in the prior year. This includes $37.2 million, or $28.4 million after tax, in refunds from the International Emergency Economic Powers Act. Total retail sales in the period rose to $1.46 billion and gross margins ticked up to 40.9 percent of sales from 38.1 percent in the second quarter of last year. During the second quarter, sales increased “significantly” in women’s accessories and lingerie and moderately in home and furniture, the company said. In shoes, men’s apparel and accessories and cosmetics, the company noted “slight sales increases,” and in juniors’ and children’s apparel and women’s apparel, sales “decreased moderately,” Dillard’s said. In terms of gross margin by category, and adjusted for the tariff refund, Dillard’s posted a moderate increase in women’s apparel, a slight increase in cosmetics, home and furniture, flat gross margin in juniors’ and children’s apparel and a slight decrease in men’s apparel and accessories and shoes. Retail gross margin fell moderately in women’s accessories and lingerie, the company said. “Our 1 percent sales increase points to a somewhat resilient consumer,” said William T. Dillard 2nd, chief executive officer. “Retail gross margin of 40.9 percent, boosted by tariff rebates, helped grow cash flow and the bottom line. We ended the quarter with over $1.2 billion in cash and short-term investments after paying off $96 million in debt.” Neil Saunders of GlobalData Retail said that while Dillard’s sales were “not spectacular, they are solid.” He cited the company’s reluctance to launch initiatives that led to a growth spike, opting instead to get the everyday fundamentals right. But while this has led to customer loyalty, those same shoppers have become a bit more selective and cautious in their spending, he said, leading to the small decrease in womenswear and other categories. But this has not led to a knee-jerk reaction to increase discounts to boost short-term sales, Saunders said, a strategy that has helped protect margins. “Dillard’s management are good stewards of the company,” he said. “Their steady approach may not always produce spectacular numbers, but it does provide the stability that underpins the economics of the business and gives them longevity in a disruptive retail world.” Dillard’s operates 272 stores, including 28 clearance centers in 30 states. Best of WWD Harvey Nichols Sees Sales Dip, Losses Widen in Year Marred by Closures Nike Logs $1.3 Billion Profit, But Supply Chain Issues Persist Zegna Shares Start Trading on New York Stock Exchange Sign up for WWD's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.

Dillard’s, Inc. DDS is expected to register a year-over-year top-line increase when it reports second-quarter fiscal 2026 numbers.The Zacks Consensus Estimate for fiscal second-quarter revenues of $1.5 billion indicates a 0.4% rise from the year-ago reported figure. The consensus estimate for earnings is pegged at $4.04 per share, implying a 13.3% decrease from the year-ago quarter’s reported figure. The consensus estimate has been stable in the past 30 days.In the last reported quarter, the company registered an earnings surprise of 58.3%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 27.9%, on average. Dillard’s quarterly performance is likely to have benefited from its strategic initiatives and resilient consumer demand. The company’s efforts to capture growth opportunities across its brick-and-mortar stores and e-commerce channels, along with disciplined inventory management, trend-focused merchandise and stronger brand relationships, are likely to have supported sales growth during the quarter under review.Dillard’s focus on fashion-forward merchandise across apparel, accessories, cosmetics and home is supported by a mix of national and exclusive brands. The company is seeing strength in its merchandise categories, particularly home and furniture, ladies’ accessories and lingerie, and shoes. Tight inventory management and curated assortments are helping drive customer engagement and consistent sell-through. Dillard’s has also been remodeling stores to enhance the shopping experience and improve store productivity, while optimizing its activewear business and capitalizing on in-demand categories. These initiatives are likely to have broadened the customer base, strengthened engagement and supported overall sales during the fiscal second quarter. Our model predicts a comparable-store sales rise of 0.7% year over year while retail sales are expected to grow 0.5% year over year for the fiscal second quarter.However, Dillard’s has been witnessing the adverse impacts of a tough operating environment due to the cautious buying behavior of consumers. Additionally, higher expenses are likely to have dented margins and the bottom line in the fiscal second quarter. While we expect SG&A expenses to increase 5% for the quarter under review, the SG&A expense rate is anticipated to expand 130 basis points to 29.6%. Our model predicts a 16.9% year-over-year decline in operating profit for the fiscal second quarter. Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.Dillard’s currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. Dillard’s is trading at a forward 12-month price-to-earnings ratio of 17.81X, higher than the Retail - Regional Department Stores industry’s average of 14.3X. The company is trading below its five-year median of 19.09X. Image Source: Zacks Investment Research The recent market movements show that DDS shares gained 12.3% in the past three months compared with the industry's 22.6% growth. Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:Williams-Sonoma, Inc. WSM has an Earnings ESP of +3.38% and a Zacks Rank of 2. WSM is likely to register a top and bottom-line increase when it reports second-quarter fiscal 2026 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for quarterly EPS of $2.04 suggests an increase of 2% from the year-ago fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $1.9 billion, suggesting growth of 4.1% from the prior-year fiscal quarter’s reported figure. WSM has a trailing four-quarter earnings surprise of 7.2%, on average.Designer Brands Inc. DBI currently has an Earnings ESP of +0.03% and a Zacks Rank of 2. The company is expected to register a top-line increase when it reports second-quarter fiscal 2026 results. The consensus mark for revenues is pegged at $743 million, indicating a rise of 0.4% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly EPS of 25 cents suggests a drop of 26.5% from the year-ago quarter. DBI has a trailing four-quarter earnings surprise of 112.8%, on average.American Eagle Outfitters AEO currently has an Earnings ESP of +2.23% and a Zacks Rank of 2. AEO is likely to register a top-line increase when it reports second-quarter fiscal 2026 numbers. The consensus estimate for quarterly revenues is pegged at $1.4 billion, suggesting growth of 6.5% from the prior-year fiscal quarter’s reported figure.The Zacks Consensus Estimate for quarterly EPS of 21 cents suggests a decrease of 53.3% from the year-ago fiscal quarter’s reported number. AEO has a trailing four-quarter earnings surprise of 48.5%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dillard's, Inc. (DDS) : Free Stock Analysis Report American Eagle Outfitters, Inc. (AEO) : Free Stock Analysis Report Williams-Sonoma, Inc. (WSM) : Free Stock Analysis Report Designer Brands Inc. (DBI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Dillard's currently trades at $573.95 per share and has shown little upside over the past six months, posting a small loss of 4.9%. The stock also fell short of the S&P 500’s 6.3% gain during that period. Is now the time to buy Dillard's, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free. We’re cautious about Dillard's. Here are three reasons we avoid DDS, plus one stock we’d rather own. A retailer’s store count often determines how much revenue it can generate. Dillard's operated 272 locations in the latest quarter, and over the last two years, has kept its store count flat while other consumer retail businesses have opted for growth. When a retailer keeps its store footprint steady, it usually means demand is stable and it’s focusing on operational efficiency to increase profitability. Same-store sales is a key performance indicator used to measure organic growth at brick-and-mortar shops for at least a year. Dillard’s demand within its existing locations has barely increased over the last two years as its same-store sales were flat. We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable. Sadly for Dillard's, its EPS declined by 8.9% annually over the last three years, more than its revenue. This tells us the company struggled because its fixed cost base made it difficult to adjust to shrinking demand. Dillard's isn’t a terrible business, but it isn’t one of our picks. With its shares underperforming the market lately, the stock trades at 16.7× forward P/E (or $573.95 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We’re fairly confident there are better stocks to buy right now. We’d suggest looking at a safe-and-steady industrials business benefiting from an upgrade cycle. ONE MORE THING: Top 6 Stocks for This Week. This market is separating quality stocks from expensive ones fast. AI is taking down whole sectors with no warning. In a rotation this fast, you need more than a list of good companies. Our AI system flagged Palantir before it ran 1,662% between October 2022 and February 2026. AppLovin before it ran 753% between February 2024 and February 2026. Nvidia before it ran 1,178% between January 2023 and February 2026. Each week it produces 6 new names that pass the same tests. Get Our Top 6 Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+271% between June 2020 and June 2025). Find your next big winner with StockStory today.