Department store stocks surged on Thursday after a positive earnings result from Dillard’s (NYSE:DDS) promoted optimism across the space.
The Little Rock-based Dillard’s notched better than expected sales and largely resilient margins despite significant increases in the cost of sales. Additionally, Dillard's (DDS) ended the quarter with an inventory position up only 7% compared to 2021, a quite modest increase as compared to worrying inventory increases marked in the first quarter for numerous retailers.
Shares of the heavily-shorted Dillard's (DDS) ripped 14.53% higher in Thursday's trading.
The impact moved beyond just Dillard's, however. The promising results lifted boats across the sector alongside better inflation data, which has also helped foment a rally in the consumer discretionary space. For example, Macy’s (NYSE:M) +5.3% was one of the top gainers in the S&P, while Nordstrom (NYSE:JWN) +4.12, and Kohl’s (NYSE:KSS) +4.09% each marked notable gains as well.
Read more on earnings expectations for Kohl’s as it prepares to report on August 18.