Dillard’s, Inc. reported earnings rose 4.2 percent in the third quarter on a 3 percent same-store gain. In the nine months, earnings were down slightly with same-store sales inching up 1 percent.

Highlights of the Third Quarter (compared to the prior year third quarter):

  • Total retail sales increased 3 percent
  • Comparable store sales increased 3 percent
  • Net income of $129.8 million compared to $124.6 million
  • Earnings per share of $8.31 compared to $7.73
  • Retail gross margin of 45.3 percent of sales compared to 44.5 percent of sales
  • Operating expenses were $440.4 million (30.0 percent of sales) compared to $418.9 million (29.4 percent of sales)
  • Ending inventory increased 2 percent

Dillard’s Inc. CEO William T. Dillard, II commented on the quarter, “We were happy to see sales strength continue through the third quarter, ending up 3 percent. We look forward to seeing and serving our customers this holiday season.”

Third Quarter Results
Dillard’s reported net income for the 13 weeks ended November 1, 2025 of $129.8 million, or $8.31 per share, compared to $124.6 million, or $7.73 per share, for the 13 weeks ended November 2, 2024.

Net sales for the 13 weeks ended November 1, 2025 and November 2, 2024 were $1.469 billion and $1.427 billion, respectively. Net sales include the operations of the company’s construction business, CDI Contractors, LLC (“CDI”).

Total retail sales (which excludes CDI) for the 13 weeks ended November 1, 2025 and November 2, 2024 were $1.401 billion and $1.356 billion, respectively. Total retail sales increased 3 percent for the 13-week period ended November 1, 2025 compared to the 13-week period ended November 2, 2024. Sales in comparable stores for the same period increased 3 percent.

Sales in ladies’ accessories and lingerie, juniors’ and children’s apparel and ladies’ apparel increased significantly compared to the prior year third quarter. Sales increased moderately in shoes and increased slightly in home and furniture, men’s apparel and accessories and cosmetics. Consolidated gross margin for the 13 weeks ended November 1, 2025 was 43.4 percent of sales compared to 42.6 percent of sales for the 13 weeks ended November 2, 2024.

Retail gross margin for the 13 weeks ended November 1, 2025 was 45.3 percent of sales compared to 44.5 percent of sales for the 13 weeks ended November 2, 2024. Compared to the prior year third quarter, retail gross margin increased moderately in ladies’ accessories and lingerie and shoes; increased slightly in home and furniture and men’s apparel and accessories; and was unchanged as a percentage in junior’s and children’s apparel, cosmetics and ladies’ apparel.

Consolidated selling, general and administrative expenses (“operating expenses”) for the 13 weeks ended November 1, 2025 were $440.4 million (30.0 percent of sales) and $418.9 million (29.4 percent of sales) for the 13 weeks ended November 2, 2024. The increase is notably due to payroll and payroll-related expenses.

Inventory increased 2 percent at November 1, 2025 compared to November 2, 2024.

39-Week Results
Dillard’s reported net income for the 39 weeks ended November 1, 2025 of $366.5 million, or $23.39 per share, compared to $379.1 million, or $23.42 per share, for the 39 weeks ended November 2, 2024. Included in net income for the 39 weeks ended November 1, 2025 is a pretax gain of $5.5 million ($4.2 million after tax or 27 cents per share) primarily related to the sale of four properties.

Net sales for the 39 weeks ended November 1, 2025 and November 2, 2024 were $4.511 billion and $4.466 billion, respectively.

Total retail sales for the 39 weeks ended November 1, 2025 and November 2, 2024 were $4.315 billion and $4.275 billion, respectively. Total retail sales increased 1 percent for the 39-week period ended November 1, 2025 compared to the 39-week period ended November 2, 2024. Sales in comparable stores increased 1 percent for the same period.

Consolidated gross margin for the 39 weeks ended November 1, 2025 was 41.3 percent of sales compared to 41.6 percent of sales for the 39 weeks ended November 2, 2024. Retail gross margin (which excludes CDI) for the 39 weeks ended November 1, 2025 was 42.9 percent of sales compared to 43.3 percent of sales for the 39 weeks ended November 2, 2024.

Operating expenses for the 39 weeks ended November 1, 2025 were $1.296 billion (28.7 percent of sales) compared to $1.279 billion (28.6 percent of sales) for the 39 weeks ended November 2, 2024.

Share Repurchase
During the 39 weeks ended November 1, 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 November 1, 2025, authorization of $165.2 million remained under the May 2023 program.

Total shares outstanding (Class A and Class B Common Stock) at November 1, 2025 and November 2, 2024 were 15.6 million and 15.9 million, respectively.

Stores
Dillard’s has announced the upcoming closure of its store at The Shops at Willow Bend in Plano, Texas (240,000 square feet). The store is expected to close in January 2026. The company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states (totaling 46.2 million square feet).

Image courtesy Dillard’s, Inc.