DILLARDS 2026 Q1 Earnings Misses Targets with Net Income Down 9%

DILLARD'S (DDS) reported its fiscal 2026 Q1 earnings on June 6th, 2025. The company's earnings results missed expectations, with a decline in both revenue and net income. Dillard's has issued guidance in line with previous estimates, projecting stable performance for the fiscal year ending January 31, 2026. The company remains focused on strategic expense management to navigate the competitive retail landscape.

Revenue
In the first quarter of fiscal 2026, DILLARD'S experienced a 1.6% decrease in total revenue, falling to $1.55 billion from $1.57 billion in the same period of 2025. The company's net sales amounted to $1.53 billion, while service charges and other income contributed $18.10 million. This decline reflects the challenging retail environment the company faces.

Earnings/Net Income
DILLARD'S saw a decline in earnings per share (EPS) by 6.3%, decreasing to $10.39 in 2026 Q1 from $11.09 a year earlier. Net income also fell by 9.0%, reaching $163.82 million compared to $180.04 million in the previous year. These results indicate a challenging period for the company.

Price Action
The stock price of DILLARD'S has edged up 0.19% during the latest trading day, has edged up 1.64% during the most recent full trading week, and has surged 16.37% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing DILLARD'S shares when revenues exceed expectations and holding them for 30 days has yielded impressive returns, with a 276.51% gain, significantly outperforming the benchmark. Despite a maximum drawdown of -38.33%, this approach has shown resilience, underscoring its potential in volatile markets. With a Sharpe ratio of 0.88 and a CAGR of 38.40%, the strategy demonstrated effective risk-adjusted returns, making it an attractive option for investors seeking both growth and stability.

CEO Commentary
William T. Dillard, II, CEO of Dillard's, expressed that while the company faced challenges with sales down 1%, efforts to control expenses were prioritized, although this resulted in a slight decline in gross margin. He noted that the retail environment remains competitive, driving the need for strategic focus on expense management while aiming to enhance customer experience through quality offerings and exceptional service.

Guidance
Dillard's anticipates a revenue target of approximately $6.59 billion for the fiscal year ending January 31, 2026, with an estimated EPS of $10.39. Capital expenditures are projected to be around $120 million, reflecting ongoing investments in store enhancements and operational efficiencies. The company expects to navigate a challenging retail landscape while leveraging its market positioning to achieve stable performance in the coming year.

Additional News
Recently, Dillard's announced a quarterly cash dividend of $0.25 per share for both Class A and Class B common stock shareholders, payable on August 4, 2025, to stockholders of record as of June 30, 2025. This dividend reflects the company's ongoing commitment to returning value to its shareholders. In another development, Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Dillard's shares during the fourth quarter, acquiring 938 shares valued at approximately $405,000. Additionally, the company has launched a new capsule collection, Shea Leigh Mills for Gianni Bini, showcasing a range of apparel and accessories designed by Nashville-based influencer Shea Leigh Mills.