How did DDS outperform forecasts in Q4 2025?

Dillard's (DDS) outperformed forecasts in Q4 2025 primarily due to stronger-than-expected earnings per share (EPS) and revenue, despite a decline in total sales compared to the previous year.

1. **Earnings Per Share (EPS)**:
- DDS reported an EPS of $13.48 for Q4 2025, surpassing the estimated EPS of $9.75.
- This marked a significant year-over-year decline from the EPS of $15.44 recorded in the same quarter of the previous year.
2. **Revenue**:
- The company’s total revenue for the quarter was $2.05 billion, slightly exceeding the estimated revenue of $1.96 billion.
- This represented a decrease from the previous year's revenue of $2.124 billion, which was attributed to a challenging retail environment and softer sales performance.
3. **Segment Performance**:
- Dillard's Retail Operations segment contributed significantly, with a total revenue of $2.017 billion, slightly exceeding expectations.
- The company's focus on expanding its omni-channel strategy and emphasizing e-commerce and regional merchandise selections likely played a role in maintaining revenue above expectations.
4. **Market Conditions**:
- The retail environment remained competitive, with Dillard's facing challenges from a soft department store sector, which impacted sales and comparable store sales.
- The company's performance was mixed, with some product categories, such as home furnishings and cosmetics, showing resilience, while others, like apparel and shoes, underperformed.

In summary, Dillard's outperformed forecasts in Q4 2025 due to better-than-expected EPS and revenue, despite a decline in total sales. The company's strategic initiatives and strong performance in certain product categories contributed to this outcome.