Dillard’s Q3 tops estimates; stores ready for holidays
Dillard's Inc. posted solid third quarter results that easily topped Wall Street estimates.
The Little Rock, Ark.-based department store chain reported net income of $130.9 million, or $8.38 per share, for the quarter ended Oct. 31, compared to $129.8 million, or $8.31 per share, for the year-ago period. Analysts had expected earnings of $7.80 per share.
Third-quarter operating expenses were $448.9 million (30.3% of sales) compared to $440.4 million (30.0% of sales) in the prior year quarter. The increase was largely driven by increased payroll expenses.
Total retail sales increased 1% to $1.418 billion. Net sales (includes operations of the company’s construction business, CDI Contractors) totaled $1.480 billion, topping estimates of $1.47 billion. Comparable store sales rose 1%.
Compared to the prior year, sales increased moderately in home and furniture, men’s apparel and accessories, ladies’ accessories and lingerie, and juniors’ and children’s apparel. Sales in cosmetics increased slightly. Sales were essentially flat in shoes and decreased slightly in ladies’ apparel.
“We achieved 1% sales growth on top of last year’s 3% increase, supporting a strong 45.3% retail gross margin,” stated Dillard’s CEO William T. Dillard. “As we head into the holidays, our stores and dedicated team are ready to welcome and serve our customers.”
For the first 39 weeks of its fiscal year, Dillard’s net income totaled $479.1 million compared to $366.5 million in the year-ago period. Total retail sales increased 2% to $4.391 billion. Comparable store sales were up 2%.
The company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states.
In September, Dillard’s announced that it would voluntarily transfer the primary listings of its securities from the New York Stock Exchange (“NYSE”) to the Texas Stock Exchange (“TXSE”). The move aligns with Dillard’s deep Texas roots — the company was founded by William T. Dillard in 1938 in Nashville, Ark., with an $8,000 investment in a hometown department store.
Dillard’s reincorporated from Delaware to Texas in August 2025. The Lone Star State is the company’s largest market.
