Little Rock, AR – February 25, 2025 – Dillard's, Inc. (NYSE: DDS), a prominent player in the retail department store industry, has announced its financial results for the fourth quarter and full fiscal year ended February 1, 2025. The results reveal a slight decline in sales and profits, reflecting challenges faced in a competitive retail environment.

1. Fourth Quarter Highlights

In the fourth quarter, Dillard's reported a 1% decrease in total retail sales, bringing in $2.017 billion, compared to $2.124 billion in the same period last year. The decline in comparable store sales mirrored this trend, also down by 1%.

Financial Performance

Net Income: Dillard's net income for the quarter was $214.4 million, or $13.48 per share, down from $250.5 million, or $15.44 per share in the previous year. This decline includes a federal and state income tax benefit of $30.8 million attributed to a special dividend deduction paid to the Employee Stock Ownership Plan during the quarter.

Operating Expenses: Operating expenses for the quarter were $452.0 million, representing 22.4% of sales, consistent with the prior year's percentage, despite a decrease in absolute terms compared to $476.7 million for the 14-week period in the previous year.

Gross Margin Analysis

Dillard’s gross margin for the fourth quarter was 34.9%, a decrease from 36.6% in the previous year. The retail gross margin specifically was 36.1%, down from 37.7%, with notable declines in home and furniture categories, which were significantly impacted.

2. Fiscal Year Overview

For the fiscal year 2024, Dillard's reported a 2% decrease in total retail sales, totaling $6.483 billion, compared to $6.752 billion in the prior year.

Yearly Financial Results

Net Income: The company's net income for the full year was $593.5 million, or $36.82 per share, down from $738.8 million, or $44.73 per share in the previous fiscal year.

Operating Expenses: Operating expenses increased slightly to $1.731 billion, or 26.7% of sales, from $1.717 billion or 25.4% of sales in the previous year, primarily due to increased payroll and related expenses.

3. Inventory and Cash Flow Position

Dillard's inventory levels rose by 7% compared to the previous year, totaling $1.172 billion. The company ended the fiscal year with $717.9 million in cash and cash equivalents, down from $808.3 million the year prior.

Share Repurchase Program

During the fourth quarter, Dillard's repurchased approximately 36,000 shares of its Class A Common Stock for a total of $14 million. As of February 1, 2025, the company has $273 million remaining under its share repurchase authorization initiated in May 2023.

4. CEO's Remarks

William T. Dillard, II, CEO of Dillard's, commented on the results: "With sales down 1%, we worked on controlling expenses but lost some steam in gross margin. We are committed to improving our operational efficiency while navigating a challenging retail landscape."

5. Looking Ahead

The company has provided estimates for the upcoming fiscal year ending January 31, 2026, projecting continued efforts to manage expenses and improve sales performance across its retail segments. Dillard's remains focused on strategic initiatives to enhance customer engagement and strengthen its market presence amid evolving consumer preferences.

As Dillard's looks to the future, the company will need to address the challenges posed by competition and changing shopping habits while leveraging its strengths in various product categories to drive growth.

Dillard's operates 272 stores across 30 states and continues to adapt to the dynamic retail environment, ensuring it remains a key player in the industry.

Original press release