Dillard’s Q1 net income rises on legal gain

Dillard’s, Inc. reported a strong first quarter for the 13 weeks ended May 2, 2026, combining modest sales growth with a large one-time legal gain.

Filing Impact

(High)

Filing Sentiment

(Neutral)

Form Type

8-K

Rhea-AI Filing Summary

Dillard’s, Inc. reported a strong first quarter for the 13 weeks ended May 2, 2026, combining modest sales growth with a large one-time legal gain. Net income rose to $250.6 million, or $16.04 per share, from $163.8 million, or $10.39 per share, a year earlier.

Net sales increased to $1.568 billion from $1.529 billion, while total retail sales grew 3% and comparable-store sales also increased 3%. Consolidated gross margin improved to 44.5% of sales from 43.9%, and retail gross margin edged up to 45.8% from 45.5%.

Results included a pre-tax gain of $104.1 million (about $79.6 million after tax, or $5.10 per share) from a favorable settlement of a long-standing payment card interchange fee lawsuit, which significantly boosted profit. Operating expenses rose to $444.0 million, or 28.3% of sales, mainly from higher payroll costs.

Cash from operations increased to $364.0 million from $232.6 million, and cash and cash equivalents reached $1,157.7 million versus $900.5 million a year earlier. Dillard’s opened a new 160,000-square-foot store in Beavercreek, Ohio and now operates 272 stores plus its online business. The company also provided 2026 estimates for depreciation, rentals, net interest and capital expenditures.

Insights

Dillard’s Q1 profit jumped on a large legal settlement, while core retail trends showed steady, moderate growth.

Dillard’s delivered higher profitability for the quarter ended May 2, 2026, with net income of $250.6 million versus $163.8 million a year earlier. A key driver was a one-time litigation settlement gain of $104.1 million pre-tax related to payment card interchange fees, adding $79.6 million after tax, or $5.10 per share.

Underlying retail performance was solid rather than dramatic. Net sales rose to $1.568 billion, and total retail sales excluding construction grew 3%, with comparable-store sales also up 3%. Consolidated gross margin improved to 44.5% of sales, and retail gross margin inched up to 45.8%, reflecting disciplined merchandising and pricing across most categories.

The balance sheet and cash flow trends support operational stability. Operating cash flow increased to $364.0 million, and cash and cash equivalents climbed to $1,157.7 million, while long-term debt declined compared to the prior year. Management plans $130 million of 2026 capital expenditures versus $93 million in 2025, suggesting ongoing investment in stores and technology. Future filings will clarify how results evolve once the settlement benefit is no longer in comparisons.

8-K Event Classification

2 items: 2.02, 9.01

2 items

Item 2.02 Results of Operations and Financial Condition Financial

Disclosure of earnings results, typically an earnings press release or preliminary financials.

Item 9.01 Financial Statements and Exhibits Exhibits

Financial statements, pro forma financial information, or exhibit attachments filed with this report.

Key Figures

Net income Q1 2026: $250.6 million Earnings per share Q1 2026: $16.04 per share Net sales Q1 2026: $1.568 billion +5 more

8 metrics

Net income Q1 2026 $250.6 million 13 weeks ended May 2, 2026 vs $163.8M prior year

Earnings per share Q1 2026 $16.04 per share Basic and diluted EPS vs $10.39 prior year

Net sales Q1 2026 $1.568 billion 13 weeks ended May 2, 2026 vs $1.529B prior year

Litigation settlement gain $104.1 million pre-tax Payment card interchange fee lawsuit; $79.6M after tax

Consolidated gross margin 44.5% of sales Q1 2026 vs 43.9% in Q1 2025

Operating cash flow Q1 2026 $364.0 million Net cash provided by operating activities vs $232.6M prior year

Cash and cash equivalents $1,157.7 million Balance sheet as of May 2, 2026 vs $900.5M May 3, 2025

2026 estimated capital expenditures $130 million Company estimate for 52 weeks ending January 30, 2027 vs $93M 2025 actual

Key Terms

retail gross margin, comparable stores, selling, general and administrative expenses, capital expenditures, +2 more

6 terms

retail gross margin financial

"Retail gross margin for the 13 weeks ended May 2, 2026 was 45.8% of sales compared to 45.5% of sales..."

Retail gross margin is the percentage of each sales dollar a retailer keeps after paying for the goods sold, calculated as (sales minus cost of goods) divided by sales. It shows how much room a store has to cover operating costs and produce profit from every sale; think of it like the difference between the price you charge for a sandwich and what you paid for the bread and filling. Investors watch it to judge pricing strength, inventory cost control and basic profitability trends.

comparable stores financial

"Sales in comparable stores for the same period increased 3%."

selling, general and administrative expenses financial

"Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 2, 2026 were $444.0 million..."

Selling, general and administrative expenses are the costs a business incurs to operate daily, such as sales efforts, office management, and administrative tasks. These expenses are important to investors because they impact the company’s profitability; higher costs can reduce profits, while efficient management of these expenses can indicate better financial health.

capital expenditures financial

"Capital expenditures | 2026 Estimated $130 | 2025 Actual $93"

Capital expenditures are the money a company spends to buy or improve big assets like buildings, equipment, or machines that will last a long time. These investments matter because they help the company grow and operate more efficiently, similar to how upgrading a home’s appliances or adding a new room can make it better and more valuable.

forward-looking statements regulatory

"This report contains certain forward-looking statements."

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Private Securities Litigation Reform Act of 1995 regulatory

"may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"

Earnings Snapshot

Net sales: $1.568 billion · Guidance included

13 weeks ended May 2, 2026

Net sales $1.568 billion

Net income $250.6 million

Earnings per share $16.04

Consolidated gross margin 44.5%

Guidance

For 2026, Dillard’s estimates depreciation and amortization of $175 million, rentals of $18 million, net interest and debt income of $5 million, and capital expenditures of $130 million.

FAQ

How did Dillard’s (DDS) perform in the first quarter of 2026?

Dillard’s reported strong first-quarter 2026 results, with net income of $250.6 million and earnings of $16.04 per share. Net sales reached $1.568 billion, and total retail sales, excluding construction, rose 3% with comparable-store sales also up 3% versus the prior-year quarter.

What drove Dillard’s earnings increase for Q1 2026?

Dillard’s earnings increase was driven by both core operations and a large one-time gain. A litigation settlement related to payment card interchange fees added a $104.1 million pre-tax gain, or $79.6 million after tax, contributing $5.10 per share to first-quarter 2026 earnings alongside modest sales and margin improvements.

How did Dillard’s sales and margins change in Q1 2026?

Dillard’s net sales grew to $1.568 billion in Q1 2026 from $1.529 billion a year earlier. Total retail sales increased 3%, with comparable-store sales also up 3%. Consolidated gross margin improved to 44.5% of sales, while retail gross margin ticked up to 45.8% from 45.5% in 2025.

What were Dillard’s cash flow and cash balance for Q1 2026?

Dillard’s generated $364.0 million in net cash from operating activities during the first quarter of 2026, up from $232.6 million a year earlier. Cash and cash equivalents at quarter-end totaled $1,157.7 million, compared with $900.5 million at the end of the prior-year first quarter.

Did Dillard’s open any new stores in early 2026?

Yes, Dillard’s opened a new 160,000-square-foot store at The Mall at Fairfield Commons in Beavercreek, Ohio during the first quarter of 2026. After this opening, the company operated 272 Dillard’s stores, including 28 clearance centers across 30 states, plus its online store at dillards.com.

What 2026 financial estimates did Dillard’s provide?

For 2026, Dillard’s estimated depreciation and amortization of $175 million, rentals of $18 million, and net interest and debt income of $5 million. The company also forecast capital expenditures of $130 million, compared with actual 2025 capital spending of $93 million, reflecting increased planned investment levels.

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Accepted by SEC EDGAR 05/14/2026 - 04:32 PM

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): May 14, 2026

Dillard’s, Inc.

(Exact name of registrant as specified in its charter)

Texas

(State or other jurisdiction of incorporation)


1-6140		71-0388071
(Commission File Number)		(IRS Employer Identification No.)

1600 Cantrell Road Little Rock, Arkansas		72201
(Address of principal executive offices)		(Zip Code)

(501) 376-5200

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):


☐		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐		Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	DDS	New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02Results of Operations and Financial Condition.

On May 14, 2026, the registrant issued a press release announcing results for the 13 weeks ended May 2, 2026. A copy of the press release is furnished as Exhibit 99.1 to this current report and is incorporated herein by reference.

Item 9.01Financial Statements and Exhibits.


Exhibit No.		Description

99.1		Press Release dated May 14, 2026, announcing results for the 13 weeks ended May 2, 2026.

104		Cover Page Interactive Data File (embedded within the Inline XBRL Document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


			DILLARD’S, INC.

Date:	May 14, 2026	By:	/s/ Phillip R. Watts
		Name:	Phillip R. Watts
		Title:	Senior Vice President, Co-Principal Financial Officer and Principal Accounting Officer

		By:	/s/ Chris B. Johnson
		Name:	Chris B. Johnson
		Title:	Senior Vice President and Co-Principal Financial Officer

Exhibit 99.1

Dillard’s, Inc. Reports First Quarter Results

LITTLE ROCK, Ark. (GLOBE NEWSWIRE) – May 14, 2026 - 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 3% sales growth supported by an increased 45.8% retail gross margin. We continue to focus on motivating our customer with newness in our merchandise assortment.”

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 to 45.5% 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%

First Quarter Results

Dillard’s reported net income for the 13 weeks ended May 2, 2026 of $250.6 million, or $16.04 per share, compared to $163.8 million, or $10.39 per share, for the 13 weeks ended May 3, 2025. Included in net income for the 13 weeks ended May 2, 2026 is 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.

Sales

Net sales for the 13 weeks ended May 2, 2026 and May 3, 2025 were $1.568 billion and $1.529 billion, respectively. Net sales includes the operations of the Company’s construction business, CDI Contractors, LLC (“CDI”).

Total retail sales (which excludes CDI) for the 13 weeks ended May 2, 2026 and May 3, 2025 were $1.518 billion and $1.468 billion, respectively. Total retail sales increased 3% for the 13-week period ended May 2, 2026 compared to the 13-week period ended May 3, 2025. Sales in comparable stores for the same period increased 3%.

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 44.5% of sales compared to 43.9% of sales for the 13 weeks ended May 3, 2025.

Retail gross margin for the 13 weeks ended May 2, 2026 was 45.8% of sales compared to 45.5% of sales for the 13 weeks ended May 3, 2025. Compared to the prior year first quarter, retail gross margin increased moderately in shoes and increased slightly in ladies’ accessories and lingerie. Retail gross margin was unchanged (as a percentage) in juniors’ and children’s apparel, cosmetics and men’s apparel and accessories. Retail gross margin decreased slightly in ladies’ apparel and decreased moderately in home and furniture.

Selling, General & Administrative Expenses

Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended May 2, 2026 were $444.0 million (28.3% of sales) and $421.7 million (27.6% of sales) for the 13 weeks ended May 3, 2025. The increase is largely due to higher payroll and payroll-related expenses.

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

Source: View Original Filing on SEC EDGAR

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Dillard’s Q1 net income rises on legal gain

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