A Surprising Retail Rock Star Rocks the Market
Shares of this name soared to an all-time high after a solid earnings report — and its performance over the years may surprise you.
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Time for a pop quiz.
Which of the following stocks has given investors the greatest return over the past five years?
Nvidia (NVDA)
Palantir (PLTR)
Tesla (TSLA)
Microsoft (MSFT)
Amazon (AMZN)
Dillard's (DDS)
We’ll share the results at the end of this article.
A Retail Rock Star
One of the above names is different from the rest. Shares of Dillard’s gained over 9% on Thursday, despite it being one of the worst trading days for the market this year. It was the only name in the above group to finish positive on the day.
In fact, Dillard's closed at an all-time high on a day that most traders and investors would rather forget.
Dillard's is a Little Rock, Arkansas-based retailer, with 272 stores located in 30 states. The majority of Dillard's department stores are located in the southern U.S.
Prior to Thursday’s opening bell, Dillard's crushed earnings estimates by a wide margin, earning $8.31 per share vs. analysts’ estimates of $6.14.
A Buyback King
One of the keys to the company’s success is its stock buyback programs. Over the past 10 years, Dillard's has steadily reduced its share count via buybacks.
The number of shares outstanding has fallen steadily over the past 10 years, effectively increasing the earnings per share. During that time, Dillard's number of shares outstanding has been reduced by more than half.
A Shooting Star?
If there’s one negative about the retailer’s chart, it's the large shooting star candlestick pattern that formed on Thursday (circled). This tells us that even though the stock gained over 9% that day, at one point it was considerably higher.
There is also a danger that shares of Dillard's could fill Thursday’s gap, taking the stock back down to the low $600’s.
A Real Estate Play
Dillard's has been one of my core holdings for over 10 years, as indicated here. The company is more than just a retailer, it’s a real estate play. Dillard's owns approximately 90% of its stores’ square footage, and invests in real estate, including malls.
The company recently purchased the Longview Mall in East Texas for $34 million. Why would Dillard's, which typically acts as an anchor store, invest in a mall?
Dillard's, by assuming ownership, can control the environment of the entire mall, allowing complimentary businesses to operate while maintaining an advantage over competitors.
Also, as the owner and anchor, it’s in the company’s best interest that the mall is not allowed to slip into decline. Customers are more likely to enjoy shopping in a thriving environment. This creates a win-win situation for Dillard's and the other tenants of the mall.
Drumroll Please…
The winner of the contest at the beginning of this article was Nvidia, with a five-year return of 1,305%. Dillard's came in a close second.
Here are the five-year returns for all of the contestants, as of the close on November 13, 2025:
Nvidia 1,305%
Dillard's 1,294%
Palantir 989%
Tesla 195%
Microsoft 132%
Amazon 52%
At the time of publication, Ponsi was long DDS.
