Dillard's Stock Soars to 52-Week High: Should Investors Buy Now?

Dillard’s Inc. DDS hit a new 52-week high of $606.96 on Sept. 17, 2025, before dropping to close at $595.92. The stock’s momentum in recent months reflects investor confidence in the company’s stronger-than-anticipated performance and improving sales momentum. The company currently trades above the 50-day and 200-day simple moving averages.

Dillard’s has registered solid growth in the year-to-date period, with shares climbing 38%, fueled by encouraging second-quarter fiscal 2025 results. With a 38% rise, the company has outperformed the broader Retail – Regional Department Stores industry and the Retail-Wholesale sector, which have rallied 22% and 10.8%, respectively, year to date. The stock has also outpaced the S&P 500’s growth of 13.4% in the same period.

Dillard’s YTD Price Performance

DDS’s net sales rose 1.6% year over year, with comparable store sales up 1%. Categories like juniors’, children’s apparel and accessories drove growth, though home and furniture lagged. Earnings per share of $4.66 topped the Zacks Consensus Estimates, reflecting disciplined expense control, even as the retail gross margin slipped 100 basis points (bps) to 38.1% amid weakness in ladies’ apparel.

The company’s financial strength remains a cornerstone of its investment case. Dillard’s ended the quarter with $1.01 billion in cash and reduced long-term debt to $225.6 million. Shareholder returns remain steady, with $9.8 million in the fiscal second quarter buybacks and a quarterly dividend of 30 cents per share declared for November.

The modest yet encouraging second-quarter fiscal 2025 performance raises the question of whether its recent stock strength reflects sustainable fundamentals or a short-term retail bounce. 

DDS Estimate Revision Trend

The Zacks Consensus Estimate for Dillard’s fiscal 2025 and 2026 EPS moved up 1.3% and 2.9%, respectively, in the last 30 days. The upward revision in earnings estimates indicates that analysts are gaining confidence in the company’s growth potential.

The Zacks Consensus Estimate for DDS’s fiscal 2025 sales and earnings suggests year-over-year growth of 0.4% and 15.8%, respectively. For fiscal 2026, the Zacks Consensus Estimate for Dillard’s sales implies 0.4% year-over-year growth, while the estimate for EPS suggests a decline of 8.8%.

Dillard’s Premium Valuation

DDS is currently trading at a forward 12-month P/E multiple of 20.34X, below the industry average of 15.59X and the S&P 500’s average of 23.36X.

The company’s valuation is another consideration, with shares trading at a premium to the department store sub-industry, reflecting investor optimism but leaving less margin for error.

Conclusion

Dillard’s impressive run to a 52-week high underscores investor confidence in its disciplined cost controls, strong balance sheet and consistent shareholder returns. The upward revisions in earnings estimates further reinforce optimism around near-term growth. Dillard’s is leveraging remodels, trend-focused assortments and omni-channel investments to drive relevance in a competitive retail landscape. 

Though the stock trades at a premium, its financial strength and ability to deliver positive surprises suggest more room to run. For investors seeking exposure to a resilient retailer with proven execution, this Zacks Rank #2 (Buy) company presents a timely buy opportunity.

Other Stocks to Consider

Zumiez Inc. ZUMZ is one of the leading global lifestyle retailers. The company presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

ZUMZ delivered a trailing four-quarter earnings surprise of 35.4%, on average. The Zacks Consensus Estimate for Zumiez’s current financial-year sales and EPS indicates growth of 3.4% and 566.7%, respectively, from the year-ago reported numbers.

Tilly's Inc. TLYS is a specialty retailer in the action sports industry, selling clothing, shoes and accessories. It currently has a Zacks Rank of 2. 

Tilly's delivered a trailing four-quarter earnings surprise of 60.7%, on average. The Zacks Consensus Estimate for TLYS’s current financial-year sales indicates a decline of 4.9% from the year-ago reported number and that for EPS suggests 8.8% growth. 

Urban Outfitters Inc. URBN is a lifestyle specialty retailer that offers fashion apparel and accessories, footwear, home decor and gift items. It presently carries a Zacks Rank #2.

The Zacks Consensus Estimate for URBN’s current financial-year sales and EPS implies growth of 9.2% and 26.4%, respectively, from the year-ago reported numbers. URBN delivered a trailing four-quarter average earnings surprise of 24.8%.

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This article originally published on Zacks Investment Research (zacks.com).

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