How does Dillard's performance stack up against key competitors such as Nordstrom, Macy's, and other department‑store peers?

Fundamentals – Dillard’s vs. the department‑store set

Dillard’s Q2 (13‑week) and YTD (26‑week) results show a modest but steady top‑line expansion— comparable‑sales growth of roughly 3‑4% and a 2‑percentage‑point lift in gross margin—while the company kept its discount rate below 10% of net sales. By contrast, Nordstrom’s comparable‑sales have been flat to slightly negative in the same period, pressured by a higher discount mix and a weaker luxury‑segment demand environment. Macy’s continues to wrestle with a sub‑3% comparable‑sales decline and a margin squeeze as it leans heavily on promotional activity to sustain traffic. Across the broader department‑store peer group, inventory turnover has softened, but Dillard’s inventory management remains tighter (turnover ~3.2× vs. ~2.8× for Macy’s and ~2.6× for Nordstrom), giving it a better cash‑conversion cycle and a more resilient balance sheet.

Technical & Relative‑Strength View

On the chart, Dillard’s has held above its 50‑day SMA since early June and is trading near its 20‑day SMA, indicating short‑term momentum is intact. The stock is also in a clear up‑trend on the 200‑day SMA, while Nordstrom and Macy’s have broken below theirs, reflecting a relative weakness in the peers. The Relative Strength Index (RSI) for Dillard’s sits in the 55‑60 range—still bullish—versus sub‑50 readings for Nordstrom and Macy’s, underscoring Dillard’s stronger price‑performance.

Actionable Take‑away

Given Dillard’s solid comparable‑sales growth, superior margin discipline, and healthier inventory dynamics, the company is outperforming its department‑store peers on the fundamentals front. Technically, Dillard’s retains upward bias while peers are in correction. For a trader looking to position within the retail sector, a long Dillard’s (or a relative‑strength “long‑DDS/short‑Nordstrom or Macy’s” spread) offers a modest upside with limited downside—especially if macro‑supply‑chain and consumer‑spending data stay supportive. Watch for any forward‑guidance revisions or a pull‑back in discounting trends that could narrow the performance gap.