Core Viewpoint - Dillard's has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Rising earnings estimates for Dillard's suggest an improvement in the company's underlying business, likely leading to an increase in stock price [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7][9]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions [9][10]. Recent Earnings Estimate Revisions - For the fiscal year ending January 2026, Dillard's is expected to earn $30.62 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 4.6% over the past three months [8].

Group 1: Ardmore Shipping (ASC) - Ardmore Shipping is engaged in the ownership and operation of product and chemical tankers, carrying a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Ardmore Shipping's current year earnings has increased by 2.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.15, significantly lower than the industry average of 19.5, and possesses a Value Score of A [2] Group 2: Dillard's (DDS) - Dillard's is a large departmental store chain featuring fashion apparel and home furnishings, also carrying a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Dillard's current year earnings has increased by 2.6% over the last 60 days [2] - Dillard's has a price-to-earnings ratio (P/E) of 16.25, which is lower than the industry average of 19.80, and possesses a Value Score of A [3] Group 3: Healthcare Services Group (HCSG) - Healthcare Services Group provides housekeeping, laundry, linen, facility maintenance, and food services to the healthcare industry, including nursing homes and hospitals, and carries a Zacks Rank 1 [4] - The Zacks Consensus Estimate for Healthcare Services Group's current year earnings has increased by 4.8% over the last 60 days [4] - The company has a price-to-earnings ratio (P/E) of 17.31, compared to the industry average of 21.10, and possesses a Value Score of A [5]

Company Overview - Dillard's (DDS) currently holds a Momentum Style Score of B, indicating potential for strong performance based on recent trends [3] - The company has a Zacks Rank of 1 (Strong Buy), which is associated with a historical track record of outperforming the market [4] Price Performance - Over the past week, Dillard's shares have increased by 9.47%, outperforming the Zacks Retail - Regional Department Stores industry, which rose by 7.76% [6] - In a longer time frame, Dillard's shares have risen by 28.3% over the past quarter and 50.01% over the last year, while the S&P 500 has only moved 8.58% and 17.39%, respectively [7] Trading Volume - The average 20-day trading volume for Dillard's is 131,782 shares, which serves as a baseline for assessing price movements [8] Earnings Estimates - In the past two months, two earnings estimates for Dillard's have been revised upwards, increasing the consensus estimate from $29.84 to $30.97 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive price trends, strong earnings outlook, and favorable trading volume, Dillard's is positioned as a solid momentum pick with a 1 (Strong Buy) rating and a Momentum Score of B [12]

Group 1 - The previous investment stance on Dillard's (NYSE: DDS) was a sell rating due to expected pressure on EPS, declining sales, and contracting margins [1] - After reviewing 2Q25, the focus is shifting towards long-term investments while also considering short-term shorts to identify alpha opportunities [1] - The investment strategy is based on bottom-up analysis, emphasizing the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - Dillard's Inc. reported second-quarter fiscal 2025 results with earnings per share (EPS) of $4.66, exceeding the Zacks Consensus Estimate of $3.79, and a year-over-year increase of 1.5% from $4.59 [1][9] - Net sales reached $1.514 billion, reflecting a 1.6% increase from the prior-year quarter, aligning closely with consensus estimates [2][9] - The company's stock price rose approximately 3.4% following the earnings announcement, indicating strong investor confidence [3] Financial Performance - Total retail sales, excluding CDI Contractors, increased by 1.5% year over year to $1.447 billion, with comparable store sales also rising by 1% [5][9] - The consolidated gross margin contracted by 100 basis points year over year to 36.6%, with retail gross margin at 38.1%, also down 100 basis points [6] - Selling, general and administrative expenses (SG&A) as a percentage of sales decreased to 28.7%, down 40 basis points from the prior-year quarter, with total SG&A expenses increasing by 0.1% year over year to $434.2 million [10][11] Cash Flow and Shareholder Returns - Dillard's ended the quarter with cash and cash equivalents of $1.012 billion and long-term debt of $225.6 million, alongside total shareholders' equity of $1.919 billion [12] - The company repurchased 24,500 shares for $9.8 million at an average price of $398.7 per share, with $165.2 million remaining under its current share repurchase authorization [13] Future Outlook - Dillard's forecasts capital expenditure of $120 million for fiscal 2025, an increase from $105 million in fiscal 2024 [14] - The company expects depreciation and amortization expenses of $180 million and projects interest and debt income of $7 million for fiscal 2025 [15]

Core Insights - The article emphasizes the importance of liquidity in assessing a company's ability to meet debt obligations and suggests that companies with adequate liquidity can drive business growth and deliver higher returns [1][2][3] Group 1: Liquidity Measures - Current Ratio: A measure of current assets relative to current liabilities, with an ideal range of 1-3 indicating a healthy balance [4] - Quick Ratio: Indicates a company's ability to pay short-term obligations, with a desirable ratio of more than 1 [5] - Cash Ratio: The most conservative measure, focusing on cash and cash equivalents relative to current liabilities, with a ratio greater than 1 being desirable but potentially indicating inefficiency [6] Group 2: Screening Parameters - Asset Utilization: A measure of efficiency, calculated as total sales over the last 12 months divided by the average total assets, with a higher ratio than the industry average indicating efficiency [7] - Growth Score: A proprietary measure added to ensure that liquid and efficient stocks have solid growth potential, with a score of A or B indicating better performance [8] Group 3: Stock Recommendations - The New York Times Company (NYT): Reported second-quarter 2025 adjusted earnings per share of 58 cents, exceeding estimates, with total revenues of $685.9 million, a 9.7% year-over-year increase [11][12] - Dillard's, Inc. (DDS): Reported second-quarter 2025 net sales of $1.5 billion, up 1.6% year over year, with adjusted earnings per share of $4.66, surpassing estimates by 23% [14][15] - Newmont Corporation (NEM): Achieved second-quarter revenues of approximately $5.32 billion, a 20.8% increase from the prior year, driven by higher gold prices [17][18] - Frontdoor, Inc. (FTDR): Reported revenues of $617 million for the last quarter, a 14% year-over-year increase, with a gross margin expansion of 130 basis points to 58% [20][21]

Core Insights - The article emphasizes the importance of cash flow in the oil and natural gas sector, highlighting that companies generating strong cash flow present significant value and growth opportunities [1]. Company and Industry Summary - Crude Value Insights provides an investment service and community focused on oil and natural gas, concentrating on cash flow and the companies that generate it [1]. - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production (E&P) firms, and live discussions about the sector [2]. - A promotional offer is available for a two-week free trial, encouraging potential subscribers to explore the oil and gas investment opportunities [3].

Core Viewpoint - Dillard's has reported strong Q2 results, exceeding EPS expectations and demonstrating operational efficiency, modest sales growth, and effective capital allocation [1][4]. Financial Performance - Q2 sales reached $1.51 billion, marking a 2% increase from the previous year and slightly surpassing estimates by 0.19% [3]. - Q2 earnings per share (EPS) were reported at $4.66, exceeding expectations of $3.79 by nearly 23% and reflecting a 1% increase from the prior year [4]. - Dillard's achieved an average earnings surprise of 24.04% over the last four quarters, consistently exceeding Zacks EPS Consensus [5]. Market Position and Strategy - Dillard's differentiates itself from competitors like Macy's and Kohl's through its focus on exclusive merchandise and private label brands in fashion apparel and home furnishings [2]. - The company has maintained a strong digital presence and loyalty initiatives, contributing to improved sales trends, particularly in adolescent apparel, ladies' accessories, and lingerie [3]. Valuation Metrics - Dillard's is trading at 16.3 times forward earnings, which is a discount compared to the S&P 500 and significantly lower than Kohl's 39 times forward earnings multiple [8]. - The stock is also below the optimal sales level of less than 2 times sales, currently at 1.2 times [9]. Earnings Estimates - Recent revisions for fiscal 2025 EPS estimates have increased by 2%, from $29.84 to $30.47, while fiscal 2026 estimates have risen by 9%, from $25.25 to $27.50 [10]. - The current Zacks Rank for Dillard's is 1 (Strong Buy), indicating positive sentiment in the market following the favorable Q2 report [11].

Core Insights - Dillard's, Inc. reported second-quarter earnings of $4.66 per share, exceeding the analyst consensus estimate of $3.44 per share [1] - The company achieved quarterly sales of $1.513 billion, surpassing the analyst consensus estimate of $1.497 billion [1] Financial Performance - The CEO highlighted a sales increase for the first time in a while and noted strengthening sales trends in July [2] - Dillard's focused on inventory control, ending up with a 2% increase compared to 6% at the end of the first quarter [2] Stock Market Reaction - Following the earnings announcement, Dillard's shares gained 3%, trading at $513.80 [2] Analyst Ratings and Price Targets - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $450 to $550 [7] - UBS analyst Mauricio Serna maintained a Sell rating and raised the price target from $170 to $175 [7]

[Operating Results Overview](index=1&type=section&id=Operating%20Results%20Overview) This section details Dillard's Q2 and year-to-date fiscal 2025 performance, covering sales, margins, expenses, and share repurchases [Second Quarter Fiscal 2025 Performance](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Performance) Dillard's Q2 fiscal 2025 saw a 1% sales increase, but net income slightly decreased to $72.8 million, with retail gross margin contracting to 38.1% [Key Highlights](index=1&type=section&id=Key%20Highlights%20-%20Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Retail Sales Growth | +1% | - | | Comparable Store Sales Growth | +1% | - | | Net Income | $72.8 million | $74.5 million | | Earnings Per Share (EPS) | $4.66 | $4.59 | | Retail Gross Margin | 38.1% | 39.1% | | Operating Expenses (% of Sales) | 28.7% | 29.1% | | Ending Inventory Growth | +2% | - | [Sales](index=1&type=section&id=Sales%20-%20Q2) | Sales Category | Q2 2025 (13 weeks) | Q2 2024 (13 weeks) | | :--- | :--- | :--- | | Net Sales (incl. CDI) | $1.514 billion | $1.490 billion | | Total Retail Sales | $1.447 billion | $1.426 billion | - Stronger performing categories included juniors' and children's apparel, and ladies' accessories and lingerie[4](index=4&type=chunk) - Home and furniture was the weakest performing category during the quarter[4](index=4&type=chunk) [Gross Margin](index=3&type=section&id=Gross%20Margin%20-%20Q2) | Margin Type | Q2 2025 (% of sales) | Q2 2024 (% of sales) | | :--- | :--- | :--- | | Consolidated Gross Margin | 36.6% | 37.6% | | Retail Gross Margin | 38.1% | 39.1% | - Retail gross margin performance varied by category, with moderate increases in shoes, slight increases in ladies' accessories and lingerie, but a significant decrease in ladies' apparel[7](index=7&type=chunk) - Inventory increased **2%** year-over-year as of August 2, 2025[8](index=8&type=chunk) [Selling, General & Administrative (SG&A) Expenses](index=3&type=section&id=Selling%20General%20%26%20Administrative%20%28SG%26A%29%20Expenses%20-%20Q2) | Expense Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Consolidated SG&A | $434.2 million | $433.6 million | | SG&A as % of Sales | 28.7% | 29.1% | - Operating expenses remained relatively flat, with savings in payroll expense being offset by increases in other expense categories[9](index=9&type=chunk) [Year-to-Date (26 Weeks) Fiscal 2025 Performance](index=3&type=section&id=Year-to-Date%20%2826%20Weeks%29%20Fiscal%202025%20Performance) Year-to-date fiscal 2025 performance was flat in sales, with net income declining to $236.7 million and EPS falling to $15.08 [Key Highlights](index=3&type=section&id=Key%20Highlights%20-%20YTD) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Retail Sales Growth | Flat | - | | Comparable Store Sales Growth | Flat | - | | Net Income | $236.7 million | $254.5 million | | Earnings Per Share (EPS) | $15.08 | $15.68 | | Retail Gross Margin | 41.8% | 42.7% | | Operating Expenses (% of Sales) | 28.1% | 28.3% | [Sales](index=4&type=section&id=Sales%20-%20YTD) | Sales Category | YTD 2025 (26 weeks) | YTD 2024 (26 weeks) | | :--- | :--- | :--- | | Net Sales (incl. CDI) | $3.043 billion | $3.039 billion | | Total Retail Sales | $2.915 billion | $2.919 billion | [Gross Margin](index=4&type=section&id=Gross%20Margin%20-%20YTD) | Margin Type | YTD 2025 (% of sales) | YTD 2024 (% of sales) | | :--- | :--- | :--- | | Consolidated Gross Margin | 40.3% | 41.2% | | Retail Gross Margin | 41.8% | 42.7% | [Selling, General & Administrative (SG&A) Expenses](index=4&type=section&id=Selling%20General%20%26%20Administrative%20%28SG%26A%29%20Expenses%20-%20YTD) | Expense Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Consolidated SG&A | $855.9 million | $860.3 million | | SG&A as % of Sales | 28.1% | 28.3% | - The decrease in year-to-date operating expenses was primarily driven by lower payroll expense[15](index=15&type=chunk) [Share Repurchase and Capital Allocation](index=4&type=section&id=Share%20Repurchase%20and%20Capital%20Allocation) Dillard's repurchased $107.8 million of Class A Common Stock year-to-date, reducing shares outstanding and leaving $165.2 million authorized | Period | Amount Repurchased | Shares Repurchased | Average Price | | :--- | :--- | :--- | :--- | | Q2 2025 (13 weeks) | $9.8 million | ~24,500 | $398.67 | | YTD 2025 (26 weeks) | $107.8 million | ~300,000 | $359.16 | - As of August 2, 2025, **$165.2 million** remained under the May 2023 share repurchase authorization[16](index=16&type=chunk) - Total shares outstanding (Class A and B) decreased to **15.6 million** at the end of Q2 2025, compared to 16.2 million at the same time in 2024[17](index=17&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement reflects a slight decrease in net income for both Q2 and year-to-date periods, driven by lower gross margin | (In Millions, Except Per Share Data) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,513.8 | $1,489.9 | $3,042.7 | $3,039.0 | | Gross Profit* | $554.5 | $559.6 | $1,225.7 | $1,250.8 | | SG&A Expenses | $434.2 | $433.6 | $855.9 | $860.3 | | Income Before Taxes | $94.6 | $97.1 | $308.3 | $331.9 | | Net Income | $72.8 | $74.5 | $236.7 | $254.5 | | Diluted EPS | $4.66 | $4.59 | $15.08 | $15.68 | *Gross Profit calculated as Net Sales - Cost of Sales* [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows strong liquidity with cash exceeding $1.0 billion, stable total assets, and reduced long-term debt | (In Millions) | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,012.0 | $946.7 | | Merchandise inventories | $1,219.8 | $1,191.4 | | Total current assets | $2,572.1 | $2,453.5 | | Total assets | $3,684.5 | $3,661.9 | | **Liabilities & Equity** | | | | Total current liabilities | $958.7 | $780.3 | | Long-term debt | $225.6 | $321.5 | | Stockholders' equity | $1,919.1 | $1,948.9 | | Total liabilities and stockholders' equity | $3,684.5 | $3,661.9 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to $319.4 million year-to-date, with positive investing cash flow and financing cash used for repurchases | (In Millions) | 26 Weeks Ended 2025 | 26 Weeks Ended 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $319.4 | $175.9 | | Net cash provided by (used in) investing activities | $93.7 | $(29.4) | | Net cash used in financing activities | $(119.0) | $(8.1) | | **Increase in cash and cash equivalents** | **$294.1** | **$138.4** | [Company Outlook and Forward-Looking Statements](index=8&type=section&id=Company%20Outlook%20and%20Forward-Looking%20Statements) This section provides fiscal 2025 estimates and outlines key risks and uncertainties affecting future performance [Estimates for Fiscal 2025](index=8&type=section&id=Estimates%20for%20Fiscal%202025) Fiscal 2025 estimates project increased capital expenditures to $120 million, stable depreciation, and decreased net interest income | (In Millions) | 2025 Estimated | 2024 Actual | | :--- | :--- | :--- | | Depreciation and amortization | $180 | $178 | | Rentals | $20 | $21 | | Interest and debt (income) expense, net | $(7) | $(14) | | Capital expenditures | $120 | $105 | [Forward-Looking Information](index=8&type=section&id=Forward-Looking%20Information) Forward-looking statements are subject to risks including economic conditions, competition, supply chain issues, and consumer spending changes - The report contains forward-looking statements based on management's current estimates and assumptions, which are not guarantees of future performance[23](index=23&type=chunk) - Key risks include inflation, economic recession, competitive pressures from various retail channels, labor shortages, supply chain issues, and changes in consumer spending habits[23](index=23&type=chunk)[24](index=24&type=chunk)