Dillard’s profit exceeds expectations but revenue falls short of expectations

LootboxPhobia · 2026-02-24T17:21:59+00:00

Dillard’s fourth-quarter earnings report shows that although revenue fell short of expectations, earnings per share exceeded market forecasts. The company’s net profit was $570.2 million, with sales down year-over-year. The CEO stated that in an environment of uncertain costs, the company maintained a healthy gross margin and paid out substantial dividends.

LootboxPhobia

2026-02-24 17:21:59

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Little Rock, Arkansas - On Tuesday, Dillard’s Inc. (NYSE:DDS) announced its Q4 earnings report, showing that despite revenue falling short of analyst expectations, profits exceeded forecasts. The department store chain is navigating a challenging retail environment.

Following the release, the company’s stock rose 1.39% in pre-market trading.

The company reported an adjusted quarterly earnings per share of $13.05 as of January 31, surpassing the analyst consensus of $10.61 by $2.44. However, revenue was $1.96 billion, below the expected $2.04 billion.

Total retail sales declined 1% year-over-year to $1.92 billion, with comparable store sales also down 1%. The company noted that a winter storm during the third weekend of January affected sales at over one-third of its stores.

For the full fiscal year, Dillard’s reported net income of $570.2 million, or $36.42 per share, compared to $593.5 million, or $36.82 per share, in the same period last year.

Total retail sales remained flat at $6.23 billion. The company’s gross retail margin was 40.8%, slightly down from 41.0% last year, while operating expenses as a percentage of sales increased from 26.7% to 27.2%.

CEO William T. Dillard II stated, “We delivered a solid performance. Despite a rapidly changing merchandise environment and unpredictable costs, we achieved a gross retail margin of 40.8%. We paid the highest dividends in our history and still hold about $1.1 billion in cash and short-term investments at year-end.”

The gross retail margin for Q4 remained stable at 36.1% of sales, unchanged from last year. Operating expenses increased to $463 million, or 23.6% of sales, up from $452 million, or 22.4%, last year, mainly due to higher wages and related costs.

At year-end, the company held $1.07 billion in cash and short-term investments, with inventory up 2% year-over-year. During the fiscal year, Dillard’s repurchased approximately 300,000 shares at a cost of $107.8 million, with an average price of $359.16 per share.

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