Dillard's, Inc. Reports First Quarter Results

Published: 2026-05-15 11:30:22 ET DDS

Published on 05/15/2026 at 11:30 am EDT

LITTLE ROCK, Ark-- 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)

https://investor.dillards.com/news-releases/news-release-details/dillards-inc-reports-first-quarter-results-6