Dillard’s Inc. reported its fourth‑quarter and full fiscal‑year 2025 results on February 24, 2026, posting revenue of $1.99 billion and earnings per share of $13.05. The company’s retail gross margin for the year was 40.8%, a slight decline from 41.0% in fiscal 2024, while selling, general and administrative expenses rose to 27.2% of sales, up from 26.7% a year earlier. Inventory increased by 2% to $1.12 billion, and cash and short‑term investments at year‑end totaled approximately $1.1 billion.
The earnings per share beat analyst expectations by $3.07, a 31% overrun on the consensus estimate of $9.98. The strong beat was driven by disciplined cost management and a modest expansion of gross margin, which helped offset the impact of higher SG&A expenses. Management noted that the company “achieved retail gross margin of 40.8% in a rapidly changing merchandising environment with unpredictable costs,” underscoring the effectiveness of its cost‑control initiatives.
Revenue fell 1.5% to $1.99 billion, missing the consensus estimate of $2.02 billion. The shortfall was largely attributable to a flat sales environment and a winter storm in January 2026 that disrupted operations in over a third of Dillard’s stores, leading to a 1% decline in comparable‑store sales. The company’s management highlighted that the storm’s impact was a significant headwind for the quarter.
Margin compression was evident in the year‑long gross margin decline and the rise in SG&A as a percentage of sales. The company’s management explained that “a rapidly changing merchandising environment with unpredictable costs” contributed to the compression, while the increase in SG&A reflects ongoing investments in store operations and e‑commerce infrastructure. Despite these pressures, the company maintained a healthy operating margin of 9.9% versus 10.2% a year earlier.
Cash and short‑term investments at year‑end were approximately $1.1 billion, providing a strong liquidity position. Dillard’s announced a record special dividend of $30.00 per share, payable on January 5, 2026, and stated that it “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.” The dividend underscores the company’s commitment to returning capital to shareholders, many of whom are associates.
Following the release, the market reacted negatively, with the stock falling about 8% as investors weighed the revenue miss and the decline in same‑store sales. The negative reaction was driven primarily by the revenue shortfall and the 1% drop in comparable‑store sales, which raised concerns about the company’s ability to sustain growth in a flat sales environment. The strong cash position and record dividend, while positive, were insufficient to offset the market’s focus on the revenue miss.
Management did not provide new forward guidance in the release. However, the company’s comments on the winter storm and the “rapidly changing merchandising environment” suggest that Dillard’s remains cautious about future demand, while its disciplined cost management and robust cash reserves position it to navigate ongoing headwinds. Investors will likely monitor the company’s performance in the coming quarters for signs of recovery in sales and margin stability.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.