Dillard’s, Inc. Reports First Quarter Results
Rhea-AI Summary
Dillard’s (NYSE:DDS) reported first quarter 2026 net income of $250.6 million, or $16.04 per share, up from $163.8 million, or $10.39 per share, a year earlier. Results include a $104.1 million pre-tax litigation settlement gain related to payment card interchange fees.
Net sales rose to $1.568 billion, with total retail sales and comparable store sales both up 3%. Retail gross margin improved to 45.8% of sales, while operating expenses increased to $444.0 million, or 28.3% of sales. Operating cash flow was $364.0 million, and cash reached $1.1577 billion. Dillard’s opened a new 160,000 square foot store in Beavercreek, Ohio and provided 2026 estimates including $175 million depreciation and amortization and $130 million in capital expenditures.
AI-generated analysis. Not financial advice.
Positive
- Net sales increased to $1.568 billion, with total retail and comparable store sales up 3%
- Net income rose to $250.6 million, with EPS increasing to $16.04
- Retail gross margin improved to 45.8% of sales from 45.5%
- Recorded a $104.1 million pre-tax gain from litigation settlement
- Operating cash flow increased to $364.0 million from $232.6 million
- Cash and cash equivalents grew to $1,157.7 million from $900.5 million
Negative
- Operating expenses increased to $444.0 million, rising to 28.3% of sales from 27.6%
- Merchandise inventories rose to $1,506.5 million, up from $1,469.3 million
- Projected 2026 capital expenditures of $130 million versus $93 million in 2025
News Market Reaction – DDS
On the day this news was published, DDS gained 0.36%, reflecting a mild positive market reaction. This price movement added approximately $33M to the company's valuation, bringing the market cap to $9.26B at that time.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
DDS slipped 0.41% while peers like KSS (-6.07%), GAP (-1.82%), FND (-3.23%) and KMX (-2.19%) also traded lower; only M was modestly positive (+0.44%).
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Aug 14 | Q2 2025 earnings | Neutral | +0.2% | Q2 2025 net income slightly lower with 1% sales growth and margin compression. |
| May 15 | Q1 2025 earnings | Negative | +6.1% | Q1 2025 net income, sales and comps declined despite strong 45.5% retail margin. |
| Feb 25 | Q4/FY 2024 earnings | Negative | -5.1% | Q4 and FY 2024 saw lower income, sales and gross margin with higher inventory. |
| May 16 | Q1 2024 earnings | Negative | -4.7% | Q1 2024 reported lower sales and earnings despite a modest gross margin improvement. |
Earnings releases have usually seen modestly negative to mixed reactions, with one notable positive surprise when results improved versus expectations.
Recent earnings for Dillard’s show mixed but generally resilient performance. Prior quarters reported modest sales changes and fluctuating gross margins, with events on May 16, 2024, Feb 25, 2025, May 15, 2025 and Aug 14, 2025. Net income and EPS have sometimes declined year-over-year, and margin pressure appeared in several periods. Despite this, at least one earnings release saw a strong positive price reaction. Today’s Q1 2026 report adds solid 3% retail sales growth and margin stability to that trajectory.
Historical Comparison
Across four prior earnings releases, average next-day move was about -0.9%, showing typically muted to slightly negative reactions around results.
Earnings releases over 2024–2025 showed modest sales shifts, changing gross margins and active capital returns. The latest Q1 2026 report adds 3% retail sales growth, higher net income and stable high margins, suggesting a continuation of disciplined retail execution following earlier mixed quarters.
Market Pulse Summary
This announcement highlights a strong start to 2026, with total retail sales up 3%, net income of $250.6M and EPS of $16.04. Retail gross margin improved to 45.8%, aided by disciplined merchandising, while operating expenses rose to $444.0M. Results also include a sizable $104.1M litigation settlement gain. Investors may watch future quarters for underlying sales trends, margin sustainability, expense control and cash generation after this one-time benefit.
Key Terms
comparable store sales financial
retail gross margin financial
selling, general and administrative expenses financial
depreciation and amortization financial
operating lease liabilities financial
short-term investments financial
capital expenditures financial
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
LITTLE ROCK, Ark., May 14, 2026 (GLOBE NEWSWIRE) -- Dillard’s, Inc. (NYSE: DDS) (the “Company” or “Dillard’s”) announced operating results for the 13 weeks ended May 2, 2026. This release contains certain forward-looking statements. Please refer to the Company’s cautionary statements included below under “Forward-Looking Information.”
Dillard’s Chief Executive Officer William T. Dillard, II commented, “We are pleased to report a good start to 2026 with a profitable
Highlights of the First Quarter (compared to the prior year first quarter):
- Total retail sales increased
3% - Comparable store sales increased
3% - Net income of
$250.6 million compared to$163.8 million - Earnings per share of
$16.04 compared to$10.39 - Retail gross margin of
45.8% of sales compared to45.5% of sales - Operating expenses were
$444.0 million (28.3% of sales) compared to$421.7 million (27.6% of sales) - Ending inventory increased
3%
- Comparable store sales increased
First Quarter Results
Dillard’s reported net income for the 13 weeks ended May 2, 2026 of
Sales
Net sales for the 13 weeks ended May 2, 2026 and May 3, 2025 were
Total retail sales (which excludes CDI) for the 13 weeks ended May 2, 2026 and May 3, 2025 were
All merchandise categories reported sales increases compared to the prior year first quarter. Sales increased significantly in home and furniture, ladies’ accessories and lingerie and shoes. Sales in men’s apparel and accessories, juniors’ and children’s apparel and ladies’ apparel increased moderately while sales in cosmetics increased slightly during the quarter.
Gross Margin
Consolidated gross margin for the 13 weeks ended May 2, 2026 was
Retail gross margin for the 13 weeks ended May 2, 2026 was
Selling, General & Administrative Expenses
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 2, 2026 were
Store Information
During the quarter, the Company opened a 160,000 square foot location at The Mall at Fairfield Commons in Beavercreek, Ohio. The Company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states (totaling 46.1 million square feet) and an Internet store at dillards.com.
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Income (Unaudited) (In Millions, Except Per Share Data) | ||||||||||||||
| 13 Weeks Ended | ||||||||||||||
| May 2, 2026 | May 3, 2025 | |||||||||||||
| % of | % of | |||||||||||||
| Net | Net | |||||||||||||
| Amount | Sales | Amount | Sales | |||||||||||
| Net sales | $ | 1,568.4 | 100.0 | % | $ | 1,528.9 | 100.0 | % | ||||||
| Service charges and other income | 20.2 | 1.3 | 18.1 | 1.2 | ||||||||||
| 1,588.6 | 101.3 | 1,547.0 | 101.2 | |||||||||||
| Cost of sales | 870.4 | 55.5 | 857.7 | 56.1 | ||||||||||
| Selling, general and administrative expenses | 444.0 | 28.3 | 421.7 | 27.6 | ||||||||||
| Depreciation and amortization | 43.3 | 2.8 | 44.5 | 2.9 | ||||||||||
| Rentals | 3.9 | 0.2 | 4.6 | 0.3 | ||||||||||
| Interest and debt (income) expense, net | (0.7 | ) | (0.0 | ) | (0.8 | ) | (0.1 | ) | ||||||
| Other expense | 5.0 | 0.3 | 5.7 | 0.4 | ||||||||||
| Gain on litigation settlement | 104.1 | 6.6 | — | — | ||||||||||
| Gain on disposal of assets | 0.2 | 0.0 | 0.1 | 0.0 | ||||||||||
| Income before income taxes and equity in earnings of joint ventures | 327.0 | 20.9 | 213.7 | 14.0 | ||||||||||
| Income taxes | 76.7 | 49.9 | ||||||||||||
| Equity in earnings of joint ventures | 0.3 | — | ||||||||||||
| Net income | $ | 250.6 | 16.0 | % | $ | 163.8 | 10.7 | % | ||||||
| Basic and diluted earnings per share | $ | 16.04 | $ | 10.39 | ||||||||||
| Basic and diluted weighted average shares outstanding | 15.6 | 15.8 | ||||||||||||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited) (In Millions) | ||||||
| May 2, | May 3, | |||||
| 2026 | 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 1,157.7 | $ | 900.5 | ||
| Accounts receivable | 47.1 | 56.9 | ||||
| Short-term investments | 259.7 | 258.5 | ||||
| Merchandise inventories | 1,506.5 | 1,469.3 | ||||
| Other current assets | 76.1 | 82.9 | ||||
| Total current assets | 3,047.1 | 2,768.1 | ||||
| Property and equipment, net | 884.7 | 976.0 | ||||
| Operating lease assets | 33.9 | 32.5 | ||||
| Deferred income taxes | 78.7 | 71.3 | ||||
| Other assets | 93.4 | 59.1 | ||||
| Total assets | $ | 4,137.8 | $ | 3,907.0 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable and accrued expenses | $ | 1,081.4 | $ | 1,056.7 | ||
| Current portion of long-term debt | 96.0 | — | ||||
| Current portion of operating lease liabilities | 9.4 | 10.8 | ||||
| Federal and state income taxes | 100.5 | 79.3 | ||||
| Total current liabilities | 1,287.3 | 1,146.8 | ||||
| Long-term debt | 225.7 | 321.6 | ||||
| Operating lease liabilities | 24.3 | 21.5 | ||||
| Other liabilities | 374.9 | 359.2 | ||||
| Subordinated debentures | 200.0 | 200.0 | ||||
| Stockholders’ equity | 2,025.6 | 1,857.9 | ||||
| Total liabilities and stockholders’ equity | $ | 4,137.8 | $ | 3,907.0 | ||
| Dillard’s, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (Unaudited) (In Millions) | ||||||||
| 13 Weeks Ended | ||||||||
| May 2, | May 3, | |||||||
| 2026 | 2025 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 250.6 | $ | 163.8 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and other deferred costs | 43.7 | 44.9 | ||||||
| Gain on disposal of assets | (0.2 | ) | (0.1 | ) | ||||
| Accrued interest on short-term investments | (2.2 | ) | (3.2 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Increase in accounts receivable | (7.3 | ) | (1.2 | ) | ||||
| Increase in merchandise inventories | (305.4 | ) | (297.3 | ) | ||||
| (Increase) decrease in other current assets | (4.1 | ) | 10.6 | |||||
| (Increase) decrease in other assets | (0.6 | ) | 1.1 | |||||
| Increase in trade accounts payable and accrued expenses and other liabilities | 313.6 | 263.6 | ||||||
| Increase in income taxes | 75.9 | 50.4 | ||||||
| Net cash provided by operating activities | 364.0 | 232.6 | ||||||
| Investing activities: | ||||||||
| Purchase of property and equipment and capitalized software | (17.2 | ) | (16.8 | ) | ||||
| Proceeds from disposal of assets | 0.2 | 0.2 | ||||||
| Proceeds from insurance | — | 1.5 | ||||||
| Purchase of short-term investments | (258.5 | ) | (212.4 | ) | ||||
| Proceeds from maturities of short-term investments | 212.4 | 282.8 | ||||||
| Net cash (used in) provided by investing activities | (63.1 | ) | 55.3 | |||||
| Financing activities: | ||||||||
| Cash dividends paid | (4.7 | ) | (4.0 | ) | ||||
| Purchase of treasury stock | — | (98.0 | ) | |||||
| Issuance cost of line of credit | — | (3.3 | ) | |||||
| Net cash used in financing activities | (4.7 | ) | (105.3 | ) | ||||
| Increase in cash and cash equivalents | 296.2 | 182.6 | ||||||
| Cash and cash equivalents, beginning of period | 861.5 | 717.9 | ||||||
| Cash and cash equivalents, end of period | $ | 1,157.7 | $ | 900.5 | ||||
| Non-cash transactions: | ||||||||
| Accrued capital expenditures | $ | 6.2 | $ | 7.6 | ||||
| Accrued purchase of treasury stock and excise taxes | — | 1.0 | ||||||
| Lease assets obtained in exchange for new operating lease liabilities | 0.3 | 1.8 | ||||||
Estimates for 2026
The Company is providing the following estimates for certain financial statement items for the 52-week period ending January 30, 2027 based upon current conditions. Actual results may differ significantly from these estimates as conditions and factors change - See “Forward-Looking Information.”
| In Millions | ||||||||
| 2026 | 2025 | |||||||
| Estimated | Actual | |||||||
| Depreciation and amortization | $ | 175 | $ | 179 | ||||
| Rentals | 18 | 19 | ||||||
| Interest and debt (income) expense, net | (5 | ) | (6 | ) | ||||
| Capital expenditures | 130 | 93 | ||||||
Forward-Looking Information
This report contains certain forward-looking statements. The following are or may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995: (a) statements including words such as “may,” “will,” “could,” “should,” “believe,” “expect,” “future,” “potential,” “anticipate,” “intend,” “plan,” “estimate,” “continue,” or the negative or other variations thereof; (b) statements regarding matters that are not historical facts; and (c) statements about the Company’s future occurrences, plans and objectives, including those statements under the heading “Estimates for 2026” regarding certain financial statement items for the 52-week period ended January 30, 2027. The Company cautions that forward-looking statements contained in this report are based on estimates, projections, beliefs and assumptions of management and information available to management at the time of such statements and are not guarantees of future performance. The Company disclaims any obligation to update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise. Forward-looking statements of the Company involve risks and uncertainties and are subject to change based on various important factors. Actual future performance, outcomes and results may differ materially from those expressed in forward-looking statements made by the Company and its management as a result of a number of risks, uncertainties and assumptions. Representative examples of those factors include (without limitation) general retail industry conditions and macro-economic conditions including inflation, economic recession and changes in traffic at malls and shopping centers; economic and weather conditions for regions in which the Company’s stores are located and the effect of these factors on the buying patterns of the Company’s customers, including the effect of changes in prices and availability of oil and natural gas; the availability of and interest rates on consumer credit; the impact of competitive pressures in the department store industry and other retail channels including specialty, off-price, discount and Internet retailers; changes in the Company’s ability to meet labor needs amid nationwide labor shortages and an intense competition for talent; changes in consumer spending patterns, debt levels and their ability to meet credit obligations; high levels of unemployment; changes in tax legislation; trade disputes and changes in trade policies including the imposition (or threat) of new or increased duties, taxes, tariffs and other charges impacting our products or supply chain; changes in legislation and governmental regulations; adequate and stable availability and pricing of materials, production facilities and labor from which the Company sources its merchandise; changes in operating expenses, including employee wages, commission structures and related benefits; system failures or data security breaches; inability to effectively utilize advancements in technology, including artificial intelligence; possible future acquisitions of store properties from other department store operators; the continued availability of financing in amounts and at the terms necessary to support the Company’s future business; fluctuations in SOFR and other base borrowing rates; potential disruption from terrorist activity and the effect on ongoing consumer confidence; epidemic, pandemic or public health issues and their effects on public health, our supply chain, the health and well-being of our employees and customers and the retail industry in general; potential disruption of international trade and supply chain efficiencies; global conflicts (including the ongoing conflicts in the Middle East and Ukraine) and the possible impact on consumer spending patterns and other economic and demographic changes of similar or dissimilar nature, and other risks and uncertainties, including those detailed from time to time in our periodic reports filed with the Securities and Exchange Commission, particularly those set forth under the caption “Item 1A, Risk Factors” in the Company’s Annual Report on Form 10-K for the fiscal year ended January 31, 2026.
CONTACT:
Dillard’s, Inc.
Julie J. Guymon
501-376-5965
julie.guymon@dillards.com
