Dillard’s, Inc. reported its first sales revenue gain in a quarter since the 2022 fourth quarter while showing a slight decline in profits.

Highlights of the Second Quarter (compared to the prior year second quarter)

  • Total retail sales increased 1 percent
  • Comparable store sales increased 1 percent
  • Net income of $72.8 million compared to $74.5 million
  • Earnings per share of $4.66 compared to $4.59
  • Retail gross margin of 38.1 percent of sales compared to 39.1 percent of sales
  • Operating expenses were $434.2 million (28.7 percent of sales) compared to $433.6 million (29.1 percent of sales)
  • Ending inventory increased 2 percent

Dillard’s CEO William T. Dillard, II commented on the quarter, “We were happy to achieve a sales increase for the first time in a while and encouraged by strengthening sales trends in July. In an operating environment that changes daily, we focused on controlling inventory, ending up 2 percent compared to 6 percent at the end of the first quarter.”

Second Quarter Results
Dillard’s reported net income for the 13 weeks ended August 2, 2025, of $72.8 million, or $4.66 per share, compared to $74.5 million, or $4.59 per share, for the 13 weeks ended August 3, 2024. Included in net income for the 13 weeks ended August 2, 2025, is a pretax gain of $4.8 million ($3.7 million after tax or $0.24 per share) primarily related to the sale of three properties.

Sales | Second Quarter

  • Net sales for the 13 weeks ended August 2, 2025, and August 3, 2024, were $1.514 billion and $1.490 billion, respectively. Net sales include the operations of the company’s construction business, CDI Contractors, LLC (“CDI”).
  • Total retail sales (excluding CDI) for the 13 weeks ended August 2, 2025, and August 3, 2024, were $1.447 billion and $1.426 billion, respectively. Total retail sales increased 1 percent for the 13-week period ended August 2, 2025, compared to the 13-week period ended August 3, 2024. Sales in comparable stores for the same period increased 1 percent. Stronger-performing categories included juniors’ and children’s apparel, ladies’ accessories, and lingerie. Home and furniture was the weakest performing category.

Gross Margin | Second Quarter

  • Consolidated gross margin for the 13 weeks ended August 2, 2025, was 36.6 percent of sales compared to 37.6 percent of sales for the 13 weeks ended August 3, 2024.
  • Retail gross margin for the 13 weeks ended August 2, 2025, was 38.1 percent of sales compared to 39.1 percent of sales for the 13 weeks ended August 3, 2024. Compared to the prior year second quarter, retail gross margin increased moderately in shoes and increased slightly in ladies’ accessories and lingerie. Retail gross margin decreased slightly in men’s apparel and accessories and decreased significantly in ladies’ apparel. Retail gross margin in juniors’ and children’s apparel, cosmetics and home and furniture was relatively unchanged as a percent of sales.
  • Inventory increased 2 percent at August 2, 2025, compared to August 3, 2024.

Selling, General & Administrative Expenses | Second Quarter
Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended August 2, 2025, were $434.2 million (28.7 percent of sales) and $433.6 million (29.1 percent of sales) for the 13 weeks ended August 3, 2024. During the quarter, savings in payroll expense were offset by increases in various other expense categories.

26-Week Results
Dillard’s reported net income for the 26 weeks ended August 2, 2025, of $236.7 million, or $15.08 per share, compared to $254.5 million, or $15.68 per share, for the 26 weeks ended August 3, 2024. Included in net income for the 26 weeks ended August 2, 2025, is a pretax gain of $4.9 million ($3.8 million after tax or $0.24 per share) primarily related to the sale of three properties.

Sales | 26 Weeks

  • Net sales for the 26 weeks ended August 2, 2025, and August 3, 2024, were $3.043 billion and $3.039 billion, respectively.
  • Total retail sales for the 26 weeks ended August 2, 2025, and August 3, 2024, were $2.915 billion and $2.919 billion, respectively.
  • Total retail sales were flat for the 26-week period ended August 2, 2025, compared to the 26-week period ended August 3, 2024.
  • Sales in comparable stores for that same period were also flat.

Gross Margin | 26 Weeks

  • Consolidated gross margin for the 26 weeks ended August 2, 2025, was 40.3 percent of sales compared to 41.2 percent of sales for the 26 weeks ended August 3, 2024.
  • Retail gross margin (excluding CDI) for the 26 weeks ended August 2, 2025, was 41.8 percent of sales, compared to 42.7 percent of sales for the 26 weeks ended August 3, 2024.
  • Selling, General & Administrative Expenses – 26 Weeks
  • Operating expenses for the 26 weeks ended August 2, 2025, were $855.9 million (28.1 percent of sales) compared to $860.3 million (28.3 percent of sales) for the 26 weeks ended August 3, 2024. The decrease in operating expenses is primarily due to a decrease in payroll expenses.

Share Repurchase

  • During the 13 weeks ended August 2, 2025, the company purchased $9.8 million (approximately 24,500 shares) of Class A Common Stock at an average price of $398.67 per share.
  • During the 26 weeks ended August 2, 2025, the company purchased $107.8 million (approximately 300,000 shares) of Class A Common Stock at an average price of $359.16 per share.
  • As of August 2, 2025, authorization of $165.2 million remained under the May 2023 program.
  • Total shares outstanding (Class A and Class B Common Stock) at August 2, 2025, and August 3, 2024, were 15.6 million and 16.2 million, respectively.

Other Information
The company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states (totaling 46.2 million square feet) and an Internet store at dillards.com.

Image courtesy Dillard’s