We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.47 billion indicates a 0.2% decline from the year-ago reported figure. The consensus estimate for earnings is pegged at $7.80 per share, implying a 6.1% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 54.7%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 35.8%, on average.
Dillard’s third-quarter fiscal 2026 results are likely to reflect resilient consumer demand, merchandise-category trends and gross-margin dynamics. The department store operator's ability to sustain comparable-store sales growth while managing operating expenses and inventory levels will be critical to its quarterly performance.
Our model predicts a year-over-year comparable-store sales rise of 0.5% for the fiscal third quarter.
The company’s efforts to capture growth opportunities across its brick-and-mortar stores and e-commerce channels, along with disciplined inventory management, trend-focused merchandise and stronger brand relationships, are likely to have supported sales growth in the fiscal third quarter.
Dillard’s focus on fashion-forward merchandise across apparel, accessories, cosmetics and home is supported by a mix of national and exclusive brands. The company is seeing strength in its merchandise categories, particularly home and furniture, ladies’ accessories and lingerie, and shoes. Tight inventory management and curated assortments are helping drive customer engagement and consistent sell-through.
Dillard’s has also been remodeling stores to enhance the shopping experience and improve store productivity, while optimizing its activewear business and capitalizing on in-demand categories. These initiatives are likely to have broadened the customer base, strengthened engagement and supported overall sales in the fiscal third quarter.
The gross-margin performance will be another key determinant of profitability. Retail gross margin in the fiscal second quarter mainly benefited from tariff refunds. With management expecting no additional significant refunds, sustaining margin gains could prove challenging. Merchandise mix and inventory management will therefore remain important.
However, elevated operating expenses could constrain earnings growth. Third-quarter fiscal 2026 selling, general and administrative expenses continue to reflect higher payroll-related costs, indicating continued operating deleverage. Dillard’s has also been witnessing the adverse impacts of a tough operating environment due to the cautious buying behavior of consumers.
We expect SG&A expenses to increase 4% for the quarter under review and the SG&A expense rate is anticipated to expand 130 basis points to 30.8%. Our model predicts a 13.2% year-over-year decline in operating profit for the fiscal third quarter.
Earnings Whispers for DDS Stock
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
DDS Stock’s Valuation Picture & Price Performance
Dillard’s is trading at a forward 12-month price-to-earnings ratio of 18.8X, higher than the Retail - Regional Department Stores industry’s average of 7.44X. The company is trading above its five-year median of 13.25X.
Image Source: Zacks Investment Research
The recent market movements show that DDS shares gained 4% in the past three months compared with the industry's 8.7% growth.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +8.66% and a Zacks Rank of 2. DG is likely to register a top and bottom-line increase when it reports third-quarter fiscal 2026 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly EPS of $1.40 suggests an increase of 9.4% from the year-ago quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $11.1 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. DG has a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 results.
The consensus mark for revenues is pegged at $2.99 billion, indicating a rise of 4.5% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly EPS of $5.60 suggests a drop of 9% from the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 7.6%, on average.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +13.43% and a Zacks Rank of 2. BBWI is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2026 numbers. The consensus estimate for quarterly revenues is pegged at $1.5 billion, suggesting a decline of 3.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly EPS of 11 cents suggests a decrease of 68.6% from the year-ago quarter’s reported number. BBWI has a trailing four-quarter earnings surprise of 43%, on average.
View the Zacks #1 Rank List
Image: Bigstock
Dillard's Q3 Pre-Earnings: Is a Beat on the Horizon for the Stock?
Key Takeaways
Dillard’s, Inc. (DDS - Free Report) is expected to register year-over-year top- and bottom-line declines when it reports third-quarter fiscal 2026 numbers.
The Zacks Consensus Estimate for fiscal third-quarter revenues of $1.47 billion indicates a 0.2% decline from the year-ago reported figure. The consensus estimate for earnings is pegged at $7.80 per share, implying a 6.1% decrease from the year-ago quarter’s reported figure. The consensus estimate has been unchanged in the past 30 days.
In the last reported quarter, the company registered an earnings surprise of 54.7%. We note that in the trailing four quarters, its bottom line beat the Zacks Consensus Estimate by 35.8%, on average.
Dillard's, Inc. Price and EPS Surprise
Dillard's, Inc. price-eps-surprise | Dillard's, Inc. Quote
Factors Likely to Drive DDS Q3 Results
Dillard’s third-quarter fiscal 2026 results are likely to reflect resilient consumer demand, merchandise-category trends and gross-margin dynamics. The department store operator's ability to sustain comparable-store sales growth while managing operating expenses and inventory levels will be critical to its quarterly performance.
Our model predicts a year-over-year comparable-store sales rise of 0.5% for the fiscal third quarter.
The company’s efforts to capture growth opportunities across its brick-and-mortar stores and e-commerce channels, along with disciplined inventory management, trend-focused merchandise and stronger brand relationships, are likely to have supported sales growth in the fiscal third quarter.
Dillard’s focus on fashion-forward merchandise across apparel, accessories, cosmetics and home is supported by a mix of national and exclusive brands. The company is seeing strength in its merchandise categories, particularly home and furniture, ladies’ accessories and lingerie, and shoes. Tight inventory management and curated assortments are helping drive customer engagement and consistent sell-through.
Dillard’s has also been remodeling stores to enhance the shopping experience and improve store productivity, while optimizing its activewear business and capitalizing on in-demand categories. These initiatives are likely to have broadened the customer base, strengthened engagement and supported overall sales in the fiscal third quarter.
The gross-margin performance will be another key determinant of profitability. Retail gross margin in the fiscal second quarter mainly benefited from tariff refunds. With management expecting no additional significant refunds, sustaining margin gains could prove challenging. Merchandise mix and inventory management will therefore remain important.
However, elevated operating expenses could constrain earnings growth. Third-quarter fiscal 2026 selling, general and administrative expenses continue to reflect higher payroll-related costs, indicating continued operating deleverage. Dillard’s has also been witnessing the adverse impacts of a tough operating environment due to the cautious buying behavior of consumers.
We expect SG&A expenses to increase 4% for the quarter under review and the SG&A expense rate is anticipated to expand 130 basis points to 30.8%. Our model predicts a 13.2% year-over-year decline in operating profit for the fiscal third quarter.
Earnings Whispers for DDS Stock
Our proven model does not conclusively predict an earnings beat for Dillard’s this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.
Dillard’s currently has an Earnings ESP of 0.00% and a Zacks Rank of 3.
DDS Stock’s Valuation Picture & Price Performance
Dillard’s is trading at a forward 12-month price-to-earnings ratio of 18.8X, higher than the Retail - Regional Department Stores industry’s average of 7.44X. The company is trading above its five-year median of 13.25X.
Image Source: Zacks Investment Research
The recent market movements show that DDS shares gained 4% in the past three months compared with the industry's 8.7% growth.
Image Source: Zacks Investment Research
Stocks With the Favorable Combination
Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:
Dollar General Corporation (DG - Free Report) has an Earnings ESP of +8.66% and a Zacks Rank of 2. DG is likely to register a top and bottom-line increase when it reports third-quarter fiscal 2026 numbers. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for quarterly EPS of $1.40 suggests an increase of 9.4% from the year-ago quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $11.1 billion, suggesting growth of 4.5% from the prior-year quarter’s reported figure. DG has a trailing four-quarter earnings surprise of 19.1%, on average.
Ulta Beauty Inc. (ULTA - Free Report) currently has an Earnings ESP of +1.84% and a Zacks Rank of 2. The company is expected to register a top- and bottom-line increase when it reports third-quarter fiscal 2026 results.
The consensus mark for revenues is pegged at $2.99 billion, indicating a rise of 4.5% from the figure reported in the year-ago quarter. The Zacks Consensus Estimate for quarterly EPS of $5.60 suggests a drop of 9% from the year-ago quarter. ULTA has a trailing four-quarter earnings surprise of 7.6%, on average.
Bath & Body Works, Inc. (BBWI - Free Report) currently has an Earnings ESP of +13.43% and a Zacks Rank of 2. BBWI is likely to register top- and bottom-line declines when it reports third-quarter fiscal 2026 numbers. The consensus estimate for quarterly revenues is pegged at $1.5 billion, suggesting a decline of 3.2% from the prior-year quarter’s reported figure.
The Zacks Consensus Estimate for quarterly EPS of 11 cents suggests a decrease of 68.6% from the year-ago quarter’s reported number. BBWI has a trailing four-quarter earnings surprise of 43%, on average.