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Dillard's Q4 Earnings Beat Estimates, Comparable Store Sales Down 1%
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Key Takeaways
Dillard's Q4 EPS topped estimates, but revenues fell 2.7% and missed forecasts as comps dipped 1%.
DDS shares slid 8% after softer same-store sales and weaker-than-expected quarterly revenues.
Dillard's gross margin rose to 35.4%, while SG&A climbed on higher payroll costs and inventory grew 2%.
Dillard's Inc. (DDS - Free Report) posted fourth-quarter fiscal 2025 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line surpassed the same. Meanwhile, the company’s sales and earnings declined year over year.
Earnings per share (EPS) of $10.08 surpassed the Zacks Consensus Estimate of $9.98. However, the bottom line declined 25.1% from $13.48 per share in the year-ago quarter.
Net sales of $1.962 billion fell 2.7% from the prior-year quarter and missed the consensus estimate of $2.02 billion. Including service charges and other income, the company reported sales of $1.989 billion, down 3% year over year.
Dillard’s shares fell about 8% yesterday due to weaker-than-expected revenues, softer same-store sales and cautious investor sentiment on future demand.
Detailed Analysis of DDS’ Q4 Performance
Total retail sales declined 1% year over year to $1.916 billion. On a 13-week comparison basis, comps decreased 1%. Category performance was mixed, with certain areas showing notable strength while others posted more modest gains. Sales in ladies’ accessories and lingerie increased moderately compared to the prior-year quarter. Shoe sales were unchanged as a percentage of total sales, while moderate declines were recorded across ladies’ apparel, cosmetics, men’s apparel and accessories, juniors’ and children’s apparel, and home and furniture categories.
The consolidated gross margin expanded 50 basis points (bps) year over year to 35.4%. Retail gross margin was 36.1%, unchanged from the prior-year period. Compared with the fourth quarter of the prior year, retail gross margin increased moderately in ladies’ apparel and juniors’ and children’s apparel. Margins were unchanged in ladies’ accessories and lingerie, shoes, cosmetics, and home and furniture, while moderate declines were recorded in men’s apparel and accessories. We had expected a gross margin of 34.6%, down 30 bps year over year.
Dillard's consolidated selling, general and administrative expenses (SG&A) as a percentage of sales were 23.6%, up 120 bps from the prior-year quarter. In dollar terms, SG&A expenses (operating expenses) increased 2.4% year over year to $463 million. The slight year-over-year increase in dollars was largely caused by higher payroll and payroll-related expenses, which represented the primary contributor to the overall rise in operating costs.
Our model had predicted SG&A expense (as a percentage of sales) to be 23.2%, up 120 bps. In dollar terms, we expected SG&A expenses to rise 4.8% year over year to $473.6 million.
Dillard’s Other Financial Details
DDS ended fiscal 2025 with cash and cash equivalents of $861.5 million, long-term debt of $225.7 million and a total shareholders' equity of $1.78 billion. The company provided $717 million of net cash from operating activities as of Jan. 31, 2026. Inventory climbed 2% year over year as of the same date.
In the fourth quarter of fiscal 2025, DDS repurchased 30000 shares for $107.8 million, reflecting an average price of $359.16 per share. As of Jan. 31, 2026, it had $165.2 million remaining under its current share repurchase authorization announced in May 2023. Total shares outstanding (Class A and Class B Common Stock) on Jan. 31, 2025, and Feb. 1, 2025, were 15.6 million and 15.9 million, respectively.
The company forecasts capital expenditure of $130 million for fiscal 2026, suggesting an increase from the $93 million reported in fiscal 2025.
As of Jan. 31, 2026, DDS operated 272 Dillard’s stores, including 28 clearance stores across 30 states and an online store at dillards.com.
Dillard’s Outlook for FY26
For fiscal 2026, Dillard’s continues to expect depreciation and amortization expenses of $175 million compared with $179 million recorded last fiscal. The company projects interest and debt income of $5 million compared with $6 million in fiscal 2025. It still anticipates rentals of $18 million compared with $19 million reported in fiscal 2025.
Shares of the Zacks Rank #3 (Hold) company have lost 10.8% in the past three months compared with the industry's 5.1% decline.
DDS Stock's Share Performance
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Williams-Sonoma Inc. (WSM - Free Report) and Boot Barn Holdings Inc. (BOOT - Free Report) .
American Eagle is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s fiscal 2025 sales indicates growth of 2.6%, from the year-ago reported number, while earnings suggest a year-over-year decline of 20.7%. AEO has a trailing four-quarter earnings surprise of 35.1%, on average.
Williams-Sonoma is a multichannel specialty retailer of premium-quality home products. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Williams-Sonoma’s fiscal 2025 sales indicates growth of 1.9% from the previous year’s reported figure, while the estimate for earnings suggests a year-over-year decline of 1%. WSM has a trailing four-quarter average earnings surprise of 8.6%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 17.6% and 26%, respectively, from the year-ago reported numbers. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average.
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Dillard's Q4 Earnings Beat Estimates, Comparable Store Sales Down 1%
Key Takeaways
Dillard's Inc. (DDS - Free Report) posted fourth-quarter fiscal 2025 results, wherein the top line missed the Zacks Consensus Estimate, while the bottom line surpassed the same. Meanwhile, the company’s sales and earnings declined year over year.
Earnings per share (EPS) of $10.08 surpassed the Zacks Consensus Estimate of $9.98. However, the bottom line declined 25.1% from $13.48 per share in the year-ago quarter.
Dillard's, Inc. Price, Consensus and EPS Surprise
Dillard's, Inc. price-consensus-eps-surprise-chart | Dillard's, Inc. Quote
Net sales of $1.962 billion fell 2.7% from the prior-year quarter and missed the consensus estimate of $2.02 billion. Including service charges and other income, the company reported sales of $1.989 billion, down 3% year over year.
Dillard’s shares fell about 8% yesterday due to weaker-than-expected revenues, softer same-store sales and cautious investor sentiment on future demand.
Detailed Analysis of DDS’ Q4 Performance
Total retail sales declined 1% year over year to $1.916 billion. On a 13-week comparison basis, comps decreased 1%. Category performance was mixed, with certain areas showing notable strength while others posted more modest gains. Sales in ladies’ accessories and lingerie increased moderately compared to the prior-year quarter. Shoe sales were unchanged as a percentage of total sales, while moderate declines were recorded across ladies’ apparel, cosmetics, men’s apparel and accessories, juniors’ and children’s apparel, and home and furniture categories.
The consolidated gross margin expanded 50 basis points (bps) year over year to 35.4%. Retail gross margin was 36.1%, unchanged from the prior-year period. Compared with the fourth quarter of the prior year, retail gross margin increased moderately in ladies’ apparel and juniors’ and children’s apparel. Margins were unchanged in ladies’ accessories and lingerie, shoes, cosmetics, and home and furniture, while moderate declines were recorded in men’s apparel and accessories. We had expected a gross margin of 34.6%, down 30 bps year over year.
Dillard's consolidated selling, general and administrative expenses (SG&A) as a percentage of sales were 23.6%, up 120 bps from the prior-year quarter. In dollar terms, SG&A expenses (operating expenses) increased 2.4% year over year to $463 million. The slight year-over-year increase in dollars was largely caused by higher payroll and payroll-related expenses, which represented the primary contributor to the overall rise in operating costs.
Our model had predicted SG&A expense (as a percentage of sales) to be 23.2%, up 120 bps. In dollar terms, we expected SG&A expenses to rise 4.8% year over year to $473.6 million.
Dillard’s Other Financial Details
DDS ended fiscal 2025 with cash and cash equivalents of $861.5 million, long-term debt of $225.7 million and a total shareholders' equity of $1.78 billion. The company provided $717 million of net cash from operating activities as of Jan. 31, 2026. Inventory climbed 2% year over year as of the same date.
In the fourth quarter of fiscal 2025, DDS repurchased 30000 shares for $107.8 million, reflecting an average price of $359.16 per share. As of Jan. 31, 2026, it had $165.2 million remaining under its current share repurchase authorization announced in May 2023. Total shares outstanding (Class A and Class B Common Stock) on Jan. 31, 2025, and Feb. 1, 2025, were 15.6 million and 15.9 million, respectively.
The company forecasts capital expenditure of $130 million for fiscal 2026, suggesting an increase from the $93 million reported in fiscal 2025.
As of Jan. 31, 2026, DDS operated 272 Dillard’s stores, including 28 clearance stores across 30 states and an online store at dillards.com.
Dillard’s Outlook for FY26
For fiscal 2026, Dillard’s continues to expect depreciation and amortization expenses of $175 million compared with $179 million recorded last fiscal. The company projects interest and debt income of $5 million compared with $6 million in fiscal 2025. It still anticipates rentals of $18 million compared with $19 million reported in fiscal 2025.
Shares of the Zacks Rank #3 (Hold) company have lost 10.8% in the past three months compared with the industry's 5.1% decline.
DDS Stock's Share Performance
Image Source: Zacks Investment Research
Key Picks
Some better-ranked stocks are American Eagle Outfitters Inc. (AEO - Free Report) , Williams-Sonoma Inc. (WSM - Free Report) and Boot Barn Holdings Inc. (BOOT - Free Report) .
American Eagle is a specialty retailer of casual apparel, accessories and footwear for men and women aged 15-25 years. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for American Eagle’s fiscal 2025 sales indicates growth of 2.6%, from the year-ago reported number, while earnings suggest a year-over-year decline of 20.7%. AEO has a trailing four-quarter earnings surprise of 35.1%, on average.
Williams-Sonoma is a multichannel specialty retailer of premium-quality home products. It carries a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Williams-Sonoma’s fiscal 2025 sales indicates growth of 1.9% from the previous year’s reported figure, while the estimate for earnings suggests a year-over-year decline of 1%. WSM has a trailing four-quarter average earnings surprise of 8.6%.
Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 17.6% and 26%, respectively, from the year-ago reported numbers. BOOT has a trailing four-quarter earnings surprise of 4.9%, on average.