DILLARDS 2026 Q3 Earnings Strong Performance with 4.2% Net Income Growth

Dillard’s (DDS) reported fiscal 2026 Q3 earnings on Nov 13th, 2025, delivering results that exceeded expectations. The company’s 2.7% revenue growth and 7.5% EPS increase outperformed Wall Street estimates, with management expressing optimism about the holiday season outlook.

Revenue

Dillard’s total revenue rose 2.7% year-over-year to $1.49 billion in Q3 2026, driven by a 3% increase in same-store sales. Net sales accounted for the majority of the revenue at $1.47 billion, with service charges and other income contributing $22.20 million. The performance highlights strong consumer demand, particularly in ladies’ apparel and accessories, juniors’ and children’s apparel, and other key categories.

Earnings/Net Income

The company’s EPS surged 7.5% to $8.31, with net income climbing 4.2% to $129.80 million. The 7.5% rise in EPS indicates strong profitability and operational efficiency, supported by a 45.3% retail gross margin (up from 44.5% in the prior year).

Post-Earnings Price Action Review

Dillard’s stock price demonstrated significant momentum following the earnings release, climbing 1.05% in a single trading day, 10.50% over the week, and 6.88% month-to-date. The market’s positive reaction reflects confidence in the company’s ability to sustain sales growth and margin improvements. The 4.79% pre-market surge on Nov 13, 2025, underscored investor enthusiasm, with analysts noting the outperformance against both revenue and EPS estimates.

CEO Commentary

Michael C. Bell, CEO, emphasized the continued sales strength in Q3 2026, attributing the 3% total revenue growth to strong performance across multiple categories. He expressed optimism about the holiday season, signaling confidence in the company’s ability to leverage its retail footprint and inventory management.

Guidance

Dillard’s did not provide explicit forward-looking guidance but outlined capital allocation priorities, including $107.8 million in share repurchases during the 39-week period ending Nov 1, 2025. The company also announced the closure of a store in Plano, Texas, as part of its strategic store optimization efforts.

Additional News

Dillard’s executed a significant share repurchase program, repurchasing 300,000 shares of Class A Common Stock for $107.8 million at an average price of $359.16 per share. This action, executed over the 39-week period, reflects management’s focus on returning capital to shareholders. Additionally, the company announced the closure of its store at The Shops at Willow Bend in Plano, Texas, expected in January 2026, to align with its strategic retail footprint adjustments. These moves highlight a disciplined approach to capital allocation and operational efficiency.

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