Dillard’s beats Q2 earnings expectations as sales rise for first time

Published 14/08/2025, 11:58
 Dillard’s beats Q2 earnings expectations as sales rise for first time

LITTLE ROCK - On Thursday, Dillard’s Inc. (NYSE:DDS) reported second-quarter earnings that significantly exceeded analyst expectations, as the department store chain achieved its first sales increase in a while.

The company’s shares edged up 0.19% in pre-market trading following the earnings announcement.

The retailer posted adjusted earnings per share of $4.66 for the quarter ended August 2, 2025, beating the analyst estimate of $3.51 by $1.15. Revenue came in at $1.51 billion, slightly above the consensus estimate of $1.5 billion. Total retail sales increased 1% YoY, with comparable store sales also rising 1%.

"We were happy to achieve a sales increase for the first time in a while and encouraged by strengthening sales trends in July," said William T. Dillard, II, Chief Executive Officer. "In an operating environment that changes daily, we focused on controlling inventory, ending up 2% compared to 6% at the end of first quarter."

The company’s retail gross margin declined to 38.1% of sales compared to 39.1% in the same period last year. Operating expenses were $434.2 million, representing 28.7% of sales, compared to $433.6 million (29.1% of sales) in the prior year quarter.

Juniors’ and children’s apparel, along with ladies’ accessories and lingerie, were the strongest performing categories, while home and furniture was the weakest.

The company also reported a pretax gain of $4.8 million ($3.7 million after tax or $0.24 per share) primarily related to the sale of three properties.

During the quarter, Dillard’s repurchased approximately 24,500 shares of Class A Common Stock for $9.8 million at an average price of $398.67 per share. The company operates 272 Dillard’s stores, including 28 clearance centers, spanning 30 states.

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