Why Dillard's (DDS) Shares Are Falling Today

Check out the companies making headlines yesterday:

Lucid : Luxury electric car manufacturer Lucid fell by 4.4% on Tuesday after prominent market commentator Jim Cramer recommended investors sell the stock. See our full article here.

Lamb Weston : Potato products company Lamb Weston fell by 2.6% on Tuesday after analysts continued to express concerns about the company's outlook, with several firms cutting their price targets. See our full article here.

Figs : Healthcare apparel company Figs fell by 3.7% on Tuesday after investors appeared to take profits following a recent run-up in the company's shares. See our full article here.

Dillard's : Department store chain Dillard’s rose by 3.4% on Tuesday after the stock appeared to stage a technical rebound following a sharp decline in the prior trading session. See our full article here.

Asana : Work management platform Asana fell by 6.1% on Tuesday after disclosures showed its Chief Operating Officer, Anne Raimondi, sold approximately $2.3 million worth of company stock. See our full article here.

Looking back on general merchandise retail stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Macy's and its peers.

General merchandise retailers–also called broadline retailers–know you’re busy and don’t want to drive around wasting time and gas, so they offer a one-stop shop. Convenience is the name of the game, so these stores may sell clothing in one section, toys in another, and home decor in a third. This concept has evolved over time from department stores to more niche concepts targeting bargain hunters or young adults, and e-commerce has forced these retailers to be extra sharp in their value propositions to consumers, whether that’s unique product or competitive prices.

The 8 general merchandise retail stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.8% below.

Thankfully, share prices of the companies have been resilient as they are up 7.6% on average since the latest earnings results.

Macy's

With a storied history that began with its 1858 founding, Macy’s is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Macy's reported revenues of $4.91 billion, flat year on year. This print exceeded analysts’ expectations by 3.4%. Overall, it was a stunning quarter for the company with a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.

Macy's delivered the weakest full-year guidance update of the whole group. The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $22.54.

Best Q3: Dillard's

With stores located largely in the Southern and Western US, Dillard’s is a department store chain that sells clothing, cosmetics, accessories, and home goods.

Dillard's reported revenues of $1.49 billion, up 2.7% year on year, outperforming analysts’ expectations by 3.1%. The business had a stunning quarter with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.

The market seems content with the results as the stock is up 3.2% since reporting. It currently trades at $625.05.

Weakest Q3: Ollie's

Often located in suburban or semi-rural shopping centers, Ollie’s Bargain Outlet is a discount retailer that acquires excess inventory then sells at meaningful discounts.

Ollie's reported revenues of $613.6 million, up 18.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ EBITDA estimates but revenue in line with analysts’ estimates.

As expected, the stock is down 8.4% since the results and currently trades at $108.82.

Read our full analysis of Ollie’s results here.

TJX

Initially based on a strategy of buying excess inventory from manufacturers or other retailers, TJX is an off-price retailer that sells brand-name apparel and other goods at prices much lower than department stores.

TJX reported revenues of $15.12 billion, up 7.5% year on year. This print surpassed analysts’ expectations by 1.5%. It was a strong quarter as it also produced an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ gross margin estimates.

The stock is up 6.8% since reporting and currently trades at $155.47.

Read our full, actionable report on TJX here, it’s free for active Edge members.

Kohl's

Founded as a corner grocery store in Milwaukee, Wisconsin, Kohl’s is a department store chain that sells clothing, cosmetics, electronics, and home goods.

Kohl's reported revenues of $3.58 billion, down 3.6% year on year. This number topped analysts’ expectations by 2.5%. Overall, it was a stunning quarter as it also logged a beat of analysts’ EPS estimates and a solid beat of analysts’ gross margin estimates.

Kohl's had the slowest revenue growth among its peers. The stock is up 32.9% since reporting and currently trades at $21.34.

Read our full, actionable report on Kohl's here, it’s free for active Edge members.

What Happened?

Shares of department store chain Dillard’s jumped 3.4% in the afternoon session after the stock appeared to stage a technical rebound following a sharp decline in the prior trading session. 

The upward move came after the shares experienced a significant drop of more than 7% during the previous day's trading. There were no major company-specific news releases or announcements to explain either the initial fall or the subsequent recovery, suggesting the price action was driven by market dynamics rather than fundamental changes in the business. Investors may have viewed the lower price as a buying opportunity, leading to the partial recovery.

After the initial pop the shares cooled down to $624.95, up 2% from previous close.

What Is The Market Telling Us

Dillard’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 3.6% on the news that investor confidence grew following its solid third-quarter performance and the announcement of a record special dividend. 

The department store chain's board approved a special dividend of $30 per share, the largest in its history. This news followed a strong third-quarter fiscal 2025 performance that reassured investors of the company's strength. During the quarter, the company delivered a 3% increase in total retail sales and 3% growth in comparable store sales. The combination of solid sales figures and a significant cash return to shareholders signaled financial health and bolstered investor confidence in the retailer's prospects.

Dillard's is up 38.7% since the beginning of the year, but at $624.95 per share, it is still trading 14.5% below its 52-week high of $730.73 from December 2025. Investors who bought $1,000 worth of Dillard’s shares 5 years ago would now be looking at an investment worth $11,295.