What: A southern department store chain is experiencing a stellar growth in terms of stock share value.

Why it is important: Traditional retail skills are still central when it comes to maintaining profitability.

Dillard's Inc., a family-run department store chain in the US founded in 1938, has seen its shares soar by more than 1,500% since April 2020, making it one of the best-performing stocks of recent years. Despite having a market value similar to that of Macy's Inc., Dillard's has less than a third of Macy's annual revenue.

The company, which owns the majority of its 280 stores (mostly in the South), has avoided chasing growth and opening hundreds of stores, buying internet startups, or selling its real estate. Dillard's focuses on smart merchandising, shrewd financial management, and personalized customer service, resulting in a loyal following.

Dillard's doesn't host quarterly conference calls or disclose how much of its $6.9 billion total revenue is derived from online sales. The company’s inventory is down 23.5% in the fiscal year that ended Jan. 28, compared with 2019. Meanwhile, profits totaled $891.6 million in the latest fiscal year, up more than 700% compared with the same period in 2019—far outpacing rivals.

The department store company with soaring stocks