On February 24, 2026, Dillard's, Inc. (NYSE: DDS) unveiled its financial results for the fourth quarter and the fiscal year ending January 31, 2026. The announcement highlights the company's steady performance amidst a challenging retail environment.

1. Key Financial Highlights

Fiscal Year Overview

Net Income: Dillard’s reported a net income of $570.2 million, down from $593.5 million in the previous fiscal year.

Earnings Per Share (EPS): The earnings per share slightly decreased to $36.42 from $36.82 year-over-year.

Retail Gross Margin: The retail gross margin for the fiscal year was 40.8%, a slight decrease from 41.0% the previous year.

Operating Expenses: Operating expenses rose to $1.759 billion, accounting for 27.2% of sales, compared to 26.7% in the prior year.

Cash Position: Dillard's ended the year with approximately $1.1 billion in cash and short-term investments.

Fourth Quarter Summary

Net Income: The company posted a net income of $203.7 million, down from $214.4 million in the same quarter last year.

EPS: Fourth-quarter earnings per share was $13.05, compared to $13.48 in the prior year.

Total Retail Sales: There was a 1% decrease in total retail sales, totaling $1.916 billion for the quarter.

Comparable Store Sales: Comparable store sales also witnessed a 1% decline.

2. Executive Commentary

William T. Dillard, II, Chief Executive Officer of Dillard’s, expressed his satisfaction with the company's overall performance despite external economic pressures. He remarked, “We reported a respectable year. We achieved retail gross margin of 40.8% in a rapidly changing merchandising environment with unpredictable costs. We rewarded our shareholders with the largest dividend in our history and still held around $1.1 billion in cash and short-term investments at year-end.”

3. Detailed Financial Analysis

Sales Performance

Dillard's net sales for the fiscal year were reported at $6.474 billion, a marginal decrease from $6.483 billion the previous year. Retail sales, which exclude the company's construction business, remained stable at $6.232 billion compared to $6.219 billion in the prior year. Notably, sales in comparable stores remained unchanged.

In the fourth quarter, retail sales decreased by 1% due to adverse weather conditions that disrupted sales in over a third of its stores. However, the company noted modest sales increases in ladies’ accessories and lingerie, while other categories such as men's apparel and home goods experienced declines.

Margins and Expenses

Dillard's gross margin remained stable at 39.5% for the fiscal year, with retail gross margin slightly declining to 40.8%. The increase in operating expenses, driven primarily by payroll and related costs, reflects the company's ongoing investment in its workforce and operations.

Shareholder Returns

Dillard's has prioritized shareholder returns, evidenced by the largest dividend in the company's history. The company paid dividends amounting to $484.8 million during the year and repurchased approximately 300,000 shares of Class A Common Stock for a total of $107.8 million.

4. Looking Ahead

As Dillard's moves into the next fiscal year, it is set to open a new 160,000-square-foot location at The Mall at Fairfield Commons in Beavercreek, Ohio, in March. The company continues to emphasize its commitment to enhancing shareholder value while navigating a complex retail landscape characterized by fluctuating consumer behavior and external economic pressures.

Dillard’s is also providing estimates for the fiscal year ending January 30, 2027, indicating potential changes in depreciation and capital expenditures, reflecting ongoing investments in infrastructure and growth initiatives.

5. Conclusion

In summary, while Dillard's has faced some challenges over the past year, the company's ability to maintain robust cash reserves, invest in future growth, and return significant value to shareholders reflects a solid foundation as it looks to adapt and thrive in the evolving retail market.

Original press release