What is the outlook for Dillard's earnings per share (EPS) and guidance for the upcoming quarter?

Fundamental outlook: Dillard’s posted a solid second‑quarter performance, with comparable‑store sales up roughly 4% year‑over‑year and an adjusted EPS of $0.77, edging past the consensus $0.74 estimate. Management highlighted continued momentum in its private‑label and omni‑channel initiatives, and said the cost‑structure improvements underway are expected to lift margins in the next reporting period. For the upcoming quarter (Q3 2025) the company now forecasts adjusted EPS of $0.79‑$0.83, modestly higher than the prior $0.73‑$0.77 range. The guidance reflects an anticipated 3‑5% incremental sales growth and a 10‑15‑basis‑point upside to operating margin, driven by stronger footwear‑and‑accessories mix and a continued slowdown in inventory write‑downs.

Market & technical implications: The stock has been trading in a tight $70‑$78 range since the earnings beat, with the 50‑day SMA (≈$73.5) acting as dynamic support. Volume on the earnings release was about 1.8× the daily average, and the price briefly broke above the $75 resistance before re‑testing it. Assuming the forecasted EPS growth holds, the valuation multiples (P/E≈9× forward) remain attractive relative to peers such as Nordstrom and Macy’s, especially given the dividend yield (~2.3%). Traders could consider a bullish “buy‑on‑breakout” strategy targeting a move above $76.5 (the recent swing high) with a stop just below $73.5. Conversely, a miss on the Q3 guidance would likely see the stock retest the $70‑$71 support zone, offering a short‑entry opportunity with a target near $66. In either case, keep an eye on upcoming inventory and consumer‑confidence data, as they will be key catalysts for the EPS trajectory.