Dillard’s, Inc. reported earnings in the first quarter, excluding the benefit of a litigation settlement, were up 4.4 percent as sales grew 3 percent and gross margins expanded. Top-selling categories include shoes, home and furniture, ladies’ accessories and lingerie.

Dillard’s Chief Executive Officer William T. Dillard, II commented, “We are pleased to report a good start to 2026 with a profitable 3 percent sales growth supported by an increased 45.8 percent 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 percent
  • Comparable store sales increased 3 percent
  • 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 percent of sales compared to 45.5 percent of sales
  • Operating expenses were $444.0 million (28.3 percent of sales) compared to $421.7 million (27.6 percent of sales)
  • Ending inventory increased 3 percent

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 percent 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 percent.
  • 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 percent of sales compared to 43.9 percent of sales for the 13 weeks ended May 3, 2025.
  • Retail gross margin for the 13 weeks ended May 2, 2026 was 45.8 percent of sales compared to 45.5 percent 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 percent of sales) and $421.7 million (27.6 percent 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.

Image courtesy Dillard’s