On November 13, 2025, Dillard’s, Inc. (NYSE: DDS) announced its operating results for the third quarter and year-to-date period ending November 1, 2025. The company reported a net income of $129.8 million for the third quarter, translating to earnings per share (EPS) of $8.31. This marks an increase from the $124.6 million net income and $7.73 EPS reported in the same quarter last year. CEO William T. Dillard II expressed optimism about the sales momentum leading into the holiday season, noting a 3% increase in total retail sales.

2. Key Highlights of the Third Quarter

Comparing results to the prior year’s third quarter, Dillard's reported several noteworthy figures:

Total Retail Sales: Increased by 3%, reaching $1.401 billion.

Comparable Store Sales: Also rose by 3%.

Net Income: Climbed to $129.8 million from $124.6 million.

Earnings Per Share: Increased to $8.31 from $7.73.

Retail Gross Margin: Improved to 45.3% from 44.5% of sales.

Operating Expenses: Increased to $440.4 million, accounting for 30% of sales, compared to $418.9 million or 29.4% of sales in the previous year.

Ending Inventory: Saw a modest increase of 2%.

Sales Performance Breakdown

Dillard's reported net sales for the third quarter at $1.469 billion, including its construction business operations. Excluding this division, total retail sales stood at $1.401 billion, showing a solid year-over-year performance with significant growth in ladies' accessories, lingerie, and juniors' apparel. Moderate increases were also noted in shoe sales, while home and furniture, men’s apparel, and cosmetics experienced slight growth.

Gross Margin Insights

The consolidated gross margin for the quarter was reported at 43.4%, a slight increase from 42.6% in the previous year. This positive trend in retail gross margin, which reached 45.3%, was attributed to improved sales in various categories, including ladies' accessories and lingerie.

Operational Expenses Overview

Dillard's operating expenses reflected a rise, primarily driven by payroll and related costs. Total operating expenses for the quarter were $440.4 million, which is a notable increase from the previous year’s $418.9 million.

3. Year-to-Date Performance Metrics

For the 39 weeks ending November 1, 2025, Dillard's reported a net income of $366.5 million, down from $379.1 million in the prior year. EPS for this period was slightly reduced to $23.39 from $23.42. Despite a year-over-year revenue increase of 1% in total retail sales, net income was impacted by a pretax gain of $5.5 million from property sales recorded in the previous year, which did not recur in the current year.

Year-to-Date Sales Data

Net Sales: Increased to $4.511 billion from $4.466 billion.

Total Retail Sales: Increased to $4.315 billion from $4.275 billion.

Comparable Store Sales: Increased by 1%.

4. Share Repurchase and Future Outlook

During the first 39 weeks of the fiscal year, Dillard's engaged in a stock buyback program, repurchasing approximately $107.8 million worth of Class A Common Stock, which accounted for about 300,000 shares at an average price of $359.16 per share. As of November 1, 2025, the remaining authorization under the buyback program was $165.2 million.

Store Closures

In strategic moves, Dillard's announced plans to close its store located at The Shops at Willow Bend in Plano, Texas, with the closure expected in January 2026. Currently, the company operates 272 stores, including 28 clearance centers, across 30 states.

5. Conclusion

Dillard's latest quarterly results reflect a resilient performance in a challenging retail environment, with significant sales growth and improved margins. As the company looks forward to the holiday season, it remains focused on strategic operational adjustments and inventory management. The upcoming months will be pivotal as consumer behavior trends continue to evolve in the wake of economic fluctuations.

Original press release