Dillard’s, Inc. Reports Third Quarter and Year-to-Date Results
Sentiment and the balance of points
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Rhea-AI Summary
Dillard’s (TXSE: DDS) reported third-quarter net income of $130.9 million, slightly above the prior-year quarter, alongside higher retail sales. Earnings per share rose to $8.38 from $8.31 for the 13 weeks ended October 31, 2026. Net sales reached $1,480.4 million versus $1,468.8 million; retail and comparable-store sales each increased 1%. Retail gross margin held at 45.3%, while operating expenses rose to $448.9 million from $440.4 million.
For the 39 weeks, net income reached $479.1 million versus $366.5 million, and earnings per share increased to $30.68 from $23.39. Results included $28.4 million after tax in tariff refunds and a $79.6 million after-tax litigation settlement gain. Retail gross margin rose to 44.0% from 42.9%. Cash and short-term investments totaled approximately $1.385 billion versus $1.334 billion. Inventory increased 4%, and operating cash flow fell to $479.8 million from $505.8 million.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointThird-quarter net income rose to $130.9 million from $129.8 million; earnings per share reached $8.38 versus $8.31.
- Moderate pointThird-quarter net sales increased to $1,480.4 million from $1,468.8 million.
- Moderate pointThird-quarter retail sales reached $1.418 billion versus $1.401 billion; retail and comparable-store sales each increased 1%.
- Moderate point39-week net income rose to $479.1 million from $366.5 million; earnings per share reached $30.68 versus $23.39.
- Moderate point39-week net sales increased to $4,556.4 million from $4,511.5 million.
- Moderate point39-week retail sales reached $4.391 billion versus $4.315 billion; retail and comparable-store sales each increased 2%.
- Moderate point39-week retail gross margin rose to 44.0% from 42.9%; consolidated margin reached 42.6% versus 41.3%.
- Moderate pointPayment-card litigation settlement generated a $104.1 million pretax gain, net of legal fees. 1.1% of market cap
12 minor points
- Minor pointThird-quarter consolidated gross margin rose to 43.6% from 43.4%.
- Minor pointThird-quarter sales increased in home and furniture, men’s apparel, accessories, lingerie, children’s apparel and cosmetics.
- Minor pointThird-quarter retail margins improved in men’s apparel and accessories, home and furniture, and shoes.
- Minor pointTariff refunds contributed $37.2 million before tax and 80 basis points to 39-week retail gross margin.
- Minor pointCash and short-term investments increased to approximately $1.385 billion from $1.334 billion year over year.
- Minor point39-week principal payments on long-term debt totaled $96.0 million.
- Minor point39-week depreciation and amortization declined to $131.7 million from $133.5 million.
- Minor point39-week rental expense declined to $11.5 million from $13.5 million.
- Minor point39-week net interest and debt income increased to $7.7 million from $5.3 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 depreciation and amortization is estimated at $175 million, versus $179 million actual in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 rentals are estimated at $17 million, versus $19 million actual in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 net interest and debt income is estimated at $12 million, versus $6 million actual in 2025.
Negative
- Moderate pointThird-quarter operating expenses rose to $448.9 million, or 30.3% of sales, from $440.4 million, or 30.0%.
- Moderate point39-week operating expenses rose to $1,336.5 million, or 29.3% of sales, from $1,296.3 million, or 28.7%.
- Moderate point39-week operating cash flow declined to $479.8 million from $505.8 million.
- Moderate pointEnding inventory increased 4% year over year.
- Minor pointThird-quarter ladies’ apparel sales decreased slightly year over year.
3 minor points
- Minor pointThird-quarter retail margins declined in ladies’ apparel, cosmetics, accessories and lingerie, and juniors’ and children’s apparel.
- Minor point. Forward-looking: it has not happened yet and may not happen.Boynton Beach Mall Clearance Center is expected to close in January 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 capital expenditures are estimated at $100 million, versus $93 million actual in 2025.
News Explained
Dillard’s estimates 2026 capital expenditures and says actual results may differ significantly as conditions change.
Dillard’s has announced that its Boynton Beach Mall Clearance Center, a 50,000-square-foot store, is expected to close in
AI-generated analysis. How Rhea-AI works. Not financial advice.
LITTLE ROCK, Ark., Nov. 12, 2026 (GLOBE NEWSWIRE) -- Dillard’s, Inc. (TXSE: DDS) (the “Company” or “Dillard’s”) announced operating results for the 13 and 39 weeks ended October 31, 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 on the quarter, “We achieved
Highlights of the Third Quarter (compared to the prior year third quarter):
- Total retail sales increased
1% - Comparable store sales increased
1% - Net income of
$130.9 million compared to$129.8 million - Earnings per share of
$8.38 compared to$8.31 - Retail gross margin of
45.3% of sales compared to45.3% of sales - Operating expenses were
$448.9 million (30.3% of sales) compared to$440.4 million (30.0% of sales) - Cash and short-term investments of approximately
$1.385 billion compared to$1.334 billion - Ending inventory increased
4%
- Comparable store sales increased
Third Quarter Results
Dillard’s reported net income for the 13 weeks ended October 31, 2026 of
Sales – Third Quarter
Net sales for the 13 weeks ended October 31, 2026 and November 1, 2025 were
Total retail sales (which excludes CDI) for the 13 weeks ended October 31, 2026 and November 1, 2025 were
Compared to the prior year third quarter as a percentage, sales increased moderately in home and furniture, men’s apparel and accessories, ladies’ accessories and lingerie, and juniors’ and children’s apparel. Sales in cosmetics increased slightly. Sales were essentially flat in shoes and decreased slightly in ladies’ apparel.
Gross Margin – Third Quarter
Consolidated gross margin for the 13 weeks ended October 31, 2026 was
Retail gross margin for the 13 weeks ended October 31, 2026 was
Compared to the prior year third quarter as a percentage, retail gross margin increased moderately in men’s apparel and accessories and home and furniture. Retail gross margin increased slightly in shoes and decreased slightly in ladies’ apparel, cosmetics and ladies’ accessories and lingerie. Retail gross margin declined moderately in juniors’ and children’s apparel.
Selling, General & Administrative Expenses – Third Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended October 31, 2026 were
Highlights of the 39 Weeks (compared to the prior year 39 Weeks):
- Total retail sales increased
2% - Comparable store sales increased
2% - Net income of
$479.1 million compared to$366.5 million - Earnings per share of
$30.68 compared to$23.39 - Retail gross margin of
44.0% of sales compared to42.9% of sales - Operating expenses were
$1,336.5 million (29.3% of sales) compared to$1,296.3 million (28.7% of sales)
- Comparable store sales increased
39-Week Results
Dillard’s reported net income for the 39 weeks ended October 31, 2026 of
$37.2 million ($28.4 million after tax, or$1.82 per share) in refunds of International Emergency Economic Powers Act (IEEPA) tariffs- a pre-tax gain on litigation settlement, net of legal fees, of
$104.1 million ($79.6 million after tax or$5.10 per share) related to the Company’s favorable settlement of a long-standing lawsuit involving payment card interchange fees
Included in net income for the 39 weeks ended November 1, 2025 is a pretax gain of
Sales – 39 Weeks
Net sales for the 39 weeks ended October 31, 2026 and November 1, 2025 were
Total retail sales for the 39 weeks ended October 31, 2026 and November 1, 2025 were
Gross Margin – 39 Weeks
Consolidated gross margin for the 39 weeks ended October 31, 2026 was
Retail gross margin for the 39 weeks ended October 31, 2026 was
Selling, General & Administrative Expenses – 39 Weeks
Operating expenses for the 39 weeks ended October 31, 2026 were
Store Information
The Company has announced the upcoming closure of its Boynton Beach Mall Clearance Center in Boynton Beach, Florida (50,000 square feet). The store is expected to close in January 2027.
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 | 39 Weeks Ended | ||||||||||||||||||||||||||||
| October 31, 2026 | November 1, 2025 | October 31, 2026 | November 1, 2025 | ||||||||||||||||||||||||||
| % of | % of | % of | % of | ||||||||||||||||||||||||||
| Net | Net | Net | Net | ||||||||||||||||||||||||||
| Amount | Sales | Amount | Sales | Amount | Sales | Amount | Sales | ||||||||||||||||||||||
| Net sales | $ | 1,480.4 | $ | 1,468.8 | $ | 4,556.4 | $ | 4,511.5 | |||||||||||||||||||||
| Service charges and other income | 22.9 | 1.5 | 22.2 | 1.5 | 66.0 | 1.4 | 62.5 | 1.4 | |||||||||||||||||||||
| 1,503.3 | 101.5 | 1,491.0 | 101.5 | 4,622.4 | 101.4 | 4,574.0 | 101.4 | ||||||||||||||||||||||
| Cost of sales | 835.0 | 56.4 | 831.6 | 56.6 | 2,614.7 | 57.4 | 2,648.6 | 58.7 | |||||||||||||||||||||
| Selling, general and administrative expenses | 448.9 | 30.3 | 440.4 | 30.0 | 1,336.5 | 29.3 | 1,296.3 | 28.7 | |||||||||||||||||||||
| Depreciation and amortization | 44.0 | 3.0 | 44.5 | 3.0 | 131.7 | 2.9 | 133.5 | 3.0 | |||||||||||||||||||||
| Rentals | 3.7 | 0.3 | 4.4 | 0.3 | 11.5 | 0.3 | 13.5 | 0.3 | |||||||||||||||||||||
| Interest and debt (income) expense, net | (4.2) | (0.3) | (3.1) | (0.2) | (7.7) | (0.2) | (5.3) | (0.1) | |||||||||||||||||||||
| Other expense | 5.0 | 0.3 | 5.0 | 0.3 | 15.0 | 0.3 | 15.8 | 0.3 | |||||||||||||||||||||
| Gain on litigation settlement | — | — | — | — | 104.1 | 2.3 | — | — | |||||||||||||||||||||
| Gain on disposal of assets | — | — | 0.6 | 0.0 | 0.3 | 0.0 | 5.5 | 0.1 | |||||||||||||||||||||
| Income before income taxes and equity in earnings of joint ventures | 170.9 | 11.5 | 168.8 | 11.5 | 625.1 | 13.7 | 477.1 | 10.6 | |||||||||||||||||||||
| Income taxes | 40.3 | 39.0 | 146.8 | 110.6 | |||||||||||||||||||||||||
| Equity in earnings of joint ventures | 0.3 | 0.0 | — | — | 0.8 | 0.0 | — | — | |||||||||||||||||||||
| Net income | $ | 130.9 | $ | 129.8 | $ | 479.1 | $ | 366.5 | |||||||||||||||||||||
| Basic and diluted earnings per share | $ | 8.38 | $ | 8.31 | $ | 30.68 | $ | 23.39 | |||||||||||||||||||||
| Basic and diluted weighted average shares outstanding | 15.6 | 15.6 | 15.6 | 15.7 | |||||||||||||||||||||||||
Dillard’s, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
(In Millions)
| October 31, | November 1, | |||||
| 2026 | 2025 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 896.8 | $ | 1,149.2 | ||
| Accounts receivable | 46.6 | 44.9 | ||||
| Short-term investments | 488.7 | 185.2 | ||||
| Merchandise inventories | 1,781.4 | 1,718.1 | ||||
| Other current assets | 63.7 | 71.6 | ||||
| Total current assets | 3,277.2 | 3,169.0 | ||||
| Property and equipment, net | 850.1 | 943.7 | ||||
| Operating lease assets | 33.9 | 27.3 | ||||
| Deferred income taxes | 80.5 | 65.6 | ||||
| Other assets | 93.3 | 92.5 | ||||
| Total assets | $ | 4,335.0 | $ | 4,298.1 | ||
| Liabilities and stockholders’ equity | ||||||
| Current liabilities: | ||||||
| Trade accounts payable and accrued expenses | $ | 1,228.2 | $ | 1,214.0 | ||
| Current portion of long-term debt | 80.0 | 96.0 | ||||
| Current portion of operating lease liabilities | 9.4 | 10.0 | ||||
| Federal and state income taxes | 20.0 | 125.4 | ||||
| Total current liabilities | 1,337.6 | 1,445.4 | ||||
| Long-term debt | 145.8 | 225.7 | ||||
| Operating lease liabilities | 24.2 | 16.9 | ||||
| Other liabilities | 379.8 | 365.0 | ||||
| Subordinated debentures | 200.0 | 200.0 | ||||
| Stockholders’ equity | 2,247.6 | 2,045.1 | ||||
| Total liabilities and stockholders’ equity | $ | 4,335.0 | $ | 4,298.1 | ||
Dillard’s, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In Millions)
| 39 Weeks Ended | ||||||||
| October 31, | November 1, | |||||||
| 2026 | 2025 | |||||||
| Operating activities: | ||||||||
| Net income | $ | 479.1 | $ | 366.5 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization of property and other deferred costs | 132.8 | 134.6 | ||||||
| Gain on disposal of assets | (0.3) | (5.5) | ||||||
| Accrued interest on short-term investments | (10.1) | (7.0) | ||||||
| Changes in operating assets and liabilities: | ||||||||
| (Increase) decrease in accounts receivable | (6.9) | 10.8 | ||||||
| Increase in merchandise inventories | (580.3) | (546.0) | ||||||
| Decrease in other current assets | 7.5 | 22.5 | ||||||
| Decrease in other assets | — | 2.0 | ||||||
| Increase in trade accounts payable and accrued expenses and other liabilities | 463.7 | 426.1 | ||||||
| (Decrease) increase in income taxes | (5.7) | 101.8 | ||||||
| Net cash provided by operating activities | 479.8 | 505.8 | ||||||
| Investing activities: | ||||||||
| Purchase of property and equipment and capitalized software | (67.7) | (73.8) | ||||||
| Proceeds from disposal of assets | 0.3 | 7.6 | ||||||
| Proceeds from insurance | — | 1.5 | ||||||
| Investments related to joint ventures | — | (34.3) | ||||||
| Purchase of short-term investments | (741.6) | (396.3) | ||||||
| Proceeds from maturities of short-term investments | 474.5 | 543.7 | ||||||
| Net cash (used in) provided by investing activities | (334.5) | 48.4 | ||||||
| Financing activities: | ||||||||
| Principal payments on long-term debt | (96.0) | — | ||||||
| Cash dividends paid | (14.0) | (11.8) | ||||||
| Purchase of treasury stock | — | (107.8) | ||||||
| Issuance cost of line of credit | — | (3.3) | ||||||
| Net cash used in financing activities | (110.0) | (122.9) | ||||||
| Increase in cash and cash equivalents | 35.3 | 431.3 | ||||||
| Cash and cash equivalents, beginning of period | 861.5 | 717.9 | ||||||
| Cash and cash equivalents, end of period | $ | 896.8 | $ | 1,149.2 | ||||
| Non-cash transactions: | ||||||||
| Accrued capital expenditures | $ | 10.7 | $ | 9.8 | ||||
| Accrued purchase of treasury stock and excise taxes | — | 1.1 | ||||||
| Stock awards | 1.4 | 1.3 | ||||||
| Lease assets obtained in exchange for new operating lease liabilities | 5.3 | 2.5 | ||||||
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 | 17 | 19 | ||||||
| Interest and debt (income) expense, net | (12) | (6) | ||||||
| Capital expenditures | 100 | 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 |
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Dillard’s third-quarter 2026 earnings and comparable-store sales?
Dillard’s earned $130.9 million, or $8.38 per share, for the 13 weeks ended October 31, 2026, while comparable-store sales increased 1%. Prior-year quarterly earnings were $129.8 million, or $8.31 per share.
What items contributed to Dillard’s 39-week 2026 earnings?
Dillard’s 39-week earnings included $28.4 million after tax in tariff refunds and a $79.6 million after-tax litigation settlement gain. These contributed $1.82 and $5.10 per share, respectively. The prior-year period included a $4.2 million after-tax gain, primarily from four property sales.
Which Dillard’s store is expected to close in January 2027?
Dillard’s expects its Boynton Beach Mall Clearance Center in Boynton Beach, Florida, to close in January 2027. The location occupies 50,000 square feet.
Why did Dillard’s operating expenses increase in 2026?
Dillard’s attributes the increase in third-quarter and 39-week operating expenses largely to higher payroll expenses. Quarterly expenses reached $448.9 million versus $440.4 million, while 39-week expenses reached $1,336.5 million versus $1,296.3 million.