Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of department store company Dillard's (NYSE: DDS) popped more than 11% today after it reported soaring third-quarter profits, far exceeding Wall Street analysts' estimates.   

So what: Dillard's Q3 earnings were up 80% compared to last year. The company attributed the dramatic improvement to better inventory management, which resulted in fewer price cuts. Dillard's also reduced its advertising and selling costs by $3.6 million.

Now what: Dillard's reports that it is "well positioned" for the important holiday selling season. In Q3, the company delivered improved earnings on flat merchandise revenues, although comparable-store sales, a closely watched retail metric, increased 1%. Keep a close eye on the company's top line going forward.  

Interested in more info on Dillard's? Add it to your watchlist by clicking here.