Core Insights - Dillard's, Inc. (DDS) is anticipated to report year-over-year declines in both revenue and earnings for the third quarter of fiscal 2025, with revenues expected at $1.42 billion, reflecting a 0.2% decrease, and earnings per share (EPS) projected at $6.43, indicating a 16.8% decline from the previous year [1][10]. Financial Performance - The Zacks Consensus Estimate indicates a 0.2% decline in revenues year-over-year, while the EPS estimate suggests a 16.8% decrease compared to the same quarter last year [1][10]. - In the last reported quarter, Dillard's achieved an earnings surprise of 23%, with an average earnings surprise of 24% over the trailing four quarters [2]. Growth Drivers - Dillard's is focusing on growth opportunities in both brick-and-mortar and e-commerce sectors, supported by strong consumer demand and effective inventory management [3][4]. - The company is enhancing brand relationships, remodeling stores, and optimizing its activewear segment, which is expected to contribute to a 0.6% rise in comparable-store sales and a 0.2% increase in overall retail sales for the fiscal third quarter [5][10]. Cost and Margin Pressures - The company is facing challenges from a tough retail environment and cautious consumer buying behavior, which may negatively impact margins and overall profitability [6]. - Selling, General and Administrative (SG&A) expenses are projected to increase by 3.9% year-over-year, with the SG&A expense rate expected to rise by 100 basis points to 29.9% [7]. Valuation and Market Performance - Dillard's is trading at a premium compared to industry averages, with a forward 12-month price-to-sales ratio of 1.46X, higher than the Retail - Regional Department Stores industry's average of 0.49X [11]. - Over the past three months, Dillard's shares have increased by 29.7%, while the industry has seen a growth of 41.3% [12].

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].

Company Overview - Kohl's shares experienced a significant rally of 37.6% in the last trading session, closing at $14.34, with trading volume notably higher than usual. This follows a 28.6% gain over the past four weeks [1][2] - The company's success is attributed to effective inventory and expense management, focusing on growth categories such as Sephora, home decor, and impulse items, along with enhanced customer experience initiatives [2] Earnings Expectations - Kohl's is expected to report quarterly earnings of $0.33 per share, reflecting a year-over-year decline of 44.1%. Revenue is anticipated to be $3.48 billion, down 6.7% from the same quarter last year [3] - The consensus EPS estimate for Kohl's has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Kohl's operates within the Zacks Retail - Regional Department Stores industry, where Dillard's, another competitor, closed the last trading session up 4.3% at $484.52, with a 15.2% return over the past month [4] - Dillard's has a consensus EPS estimate of $3.47 for its upcoming report, which represents a 24.4% decline from the previous year, and currently holds a Zacks Rank of 2 (Buy) [5]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Kohl's despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Kohl's is expected to report a quarterly loss of $0.22 per share, reflecting an 8.3% year-over-year change, with revenues projected at $3.21 billion, down 5.2% from the previous year [3]. - The earnings report is scheduled for release on May 29, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has been revised 9.09% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, suggesting no recent differing analyst views [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict deviations from consensus estimates, with a positive reading being a strong indicator of an earnings beat [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically produced positive surprises nearly 70% of the time [8]. Historical Performance - In the last reported quarter, Kohl's exceeded expectations by delivering earnings of $0.95 per share against an expected $0.72, resulting in a surprise of +31.94% [12]. - Over the past four quarters, Kohl's has beaten consensus EPS estimates twice [13]. Industry Context - Macy's, a competitor in the retail sector, is expected to report earnings of $0.14 per share, reflecting a year-over-year decline of 48.2%, with revenues projected at $4.47 billion, down 7.7% [17]. - Macy's consensus EPS estimate has been revised down by 3.7% in the last 30 days, and it currently has an Earnings ESP of 2.11% but a Zacks Rank of 4, complicating predictions for an earnings beat [18].