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 operator Dillard's (NYSE: DDS) climbed 15% on Friday after its quarterly results easily topped Wall Street expectations.

So what: Driven by higher-than-expected sales and a joint venture-related gain, the company's first-quarter profit surged 57% to $76.7 million, or $1.31 per share, versus the average analyst estimate of just $0.91 per share. The shares are now up more than 100% over the past year, as Dillard's margins and, more importantly, its balance sheet, have continued to show steady improvement.

Now what: I'd be cautious about chasing the stock at this point. While the sector is certainly seeing a nice sales rebound -- Macy's (NYSE: M) and Kohl's (NYSE: KSS) also reported market-topping quarters this week -- department stores still don't strike me as an ideal long-term hold. With Dillard's in particular now sporting a forward P/E of 16, it's tough to consider it a dirt cheap turnaround play, either.

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