Dillard's (DDS) stock is surging 5.01% in Friday's pre-market trading, building on the momentum from Thursday's intraday gains. The upward movement comes on the heels of the company's impressive first-quarter financial results, which significantly exceeded analyst expectations.
In its Q1 report released on Thursday, Dillard's showcased its resilience in a challenging retail environment. The department store chain reported a basic earnings per share (EPS) of $10.39, comfortably surpassing the average analyst estimate of $9.14. While this represents a slight decrease from $11.09 per share in the same quarter last year, it still impressed investors. The company's net income for the quarter stood at $163.8 million, with total revenue reaching $1.55 billion.
Despite a 1% decrease in comparable store sales and a slight 1.6% decline in total revenue compared to the previous year, Dillard's maintained a strong retail gross margin of 45.5%. The company's ability to exceed earnings expectations in the face of ongoing challenges in the retail sector, including inflationary pressures and changing consumer behaviors, has clearly resonated positively with investors, driving the significant stock price increase in pre-market trading.
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