Dillard’s Inc. (DDS) exceeded expectations with third-quarter fiscal 2025 results, reporting an EPS of $8.31, beating estimates of $6.43. Net sales of $1.469 billion also surpassed projections, with a 2.9% increase from the previous year. The company’s stock rose 10% following the positive earnings report, signaling investor confidence in its performance.

Dillard’s saw a 3.3% increase in total retail sales, with strong growth in categories like ladies’ accessories, juniors’ apparel, and children’s apparel. The company’s gross margin expanded by 80 basis points to 43.4%, surpassing expectations. However, selling, general, and administrative expenses rose by 60 basis points to 30% of sales, driven by higher operating costs.

As of November 1, 2025, Dillard’s had $1.149 billion in cash, $225.7 million in long-term debt, and $2.045 billion in total shareholders’ equity. The company repurchased $107.8 million worth of shares in the third quarter and had $165.2 million remaining under its share repurchase authorization. Dillard’s also expects a decrease in capital expenditure for fiscal 2025.

Looking ahead, Dillard’s forecasts depreciation and amortization expenses of $180 million for fiscal 2025. Despite being a Zacks Rank #4 (Strong Sell) company, its shares have gained 28.7% in the past three months. In comparison, the industry has seen a 35.9% rise. For those seeking alternatives, Boot Barn Inc. (BOOT), Amazon.com Inc. (AMZN), and Casey’s General Stores (CASY) are also favorable picks with growth potential.

Read more at Nasdaq: Dillard’s Q3 Earnings Beat Estimates, Comparable Store Sales Rise 3%