Dillard's Q3 profit rises to $130.9 million on 1% sales gain

Dillard's (DDS) reported third-quarter net income of $130.9 million, or $8.38 per share, for the 13 weeks ended Oct. 31, 2026.

Total retail sales rose 1% to $1.42 billion, and comparable store sales also rose 1%.

Here's how the company did:

• Earnings per share: $8.38 vs. $8.31 a year earlier
• Net sales: $1.48 billion vs. $1.47 billion a year earlier
• Net income: $130.9 million vs. $129.8 million a year earlier
• Retail gross margin: 45.3% of sales vs. 45.3% a year earlier

Net sales include CDI Contractors, LLC, the company's construction business. Total retail sales exclude CDI and were $1.40 billion a year earlier.

Third-quarter results

Sales increased moderately in home and furniture, men's apparel and accessories, ladies' accessories and lingerie, and juniors' and children's apparel. Sales were essentially flat in shoes and decreased slightly in ladies' apparel.

Consolidated gross margin was 43.6% of sales, compared with 43.4% a year earlier.

Operating expenses rose to $448.9 million, or 30.3% of sales, from $440.4 million, or 30.0% of sales. The company said the increase is largely due to higher payroll expense.

Cash and short-term investments were about $1.39 billion, compared with $1.33 billion a year earlier. Ending inventory increased 4%.

Nine-month results

For the 39 weeks ended Oct. 31, 2026, net income was $479.1 million, or $30.68 per share, compared with $366.5 million, or $23.39 per share, a year earlier. Total retail sales rose 2% to $4.39 billion from $4.32 billion.

Two items boosted the nine-month profit. The company recorded $37.2 million in refunds of International Emergency Economic Powers Act (IEEPA) tariffs, or $28.4 million after tax, or $1.82 per share.

The company also booked a pre-tax gain on litigation settlement, net of legal fees, of $104.1 million, or $79.6 million after tax, or $5.10 per share. The gain relates to a settlement of a long-standing lawsuit involving payment card interchange fees.

The tariff refunds added 80 basis points to retail gross margin, which rose to 44.0% of sales from 42.9%.

Operating expenses for the 39 weeks were $1.34 billion, or 29.3% of sales, compared with $1.30 billion, or 28.7% of sales. The increase is largely due to higher payroll expenses.

The year-earlier nine months included a $5.5 million pre-tax gain, or $4.2 million after tax, mainly from the sale of four properties.

Store closure and 2026 estimates

The company said it will close its Boynton Beach Mall Clearance Center in Boynton Beach, Florida, a 50,000-square-foot store, in January 2027.

It operates 272 Dillard's stores, including 28 clearance centers, in 30 states, totaling 46.1 million square feet, plus an internet store at dillards.com.

For the 52 weeks ending Jan. 30, 2027, the company is providing estimates. Depreciation and amortization is estimated at $175 million, compared with $179 million in 2025. Rentals are estimated at $17 million, against $19 million. Interest and debt income, net, is estimated at $12 million, against $6 million. Capital expenditures are estimated at $100 million, compared with $93 million.