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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.  

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Fool contributor April Taylor does not own shares of the companies mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.