DILLARDS 2026 Q3 Earnings Strong Performance as Net Income Grows 4.2%

DILLARD’S (DDS) reported fiscal 2026 Q3 earnings on Dec 5, 2025, showcasing robust financial performance with revenue and earnings growth. The company’s results exceeded expectations, driven by strong sales and improved profitability, while guidance for the full year remains aligned with current targets.

Revenue

DILLARD’S total revenue rose 2.7% year-over-year to $1.49 billion in Q3 2026, compared to $1.45 billion in Q3 2025. Net sales accounted for the majority of the revenue at $1.47 billion, complemented by service charges and other income of $22.20 million. The consistent growth in core sales underscores the company’s effective demand management and pricing strategies.

Earnings/Net Income

The company’s earnings per share (EPS) increased by 7.5% to $8.31 in Q3 2026 from $7.73 in Q3 2025. Net income also expanded by 4.2% to $129.81 million, reflecting disciplined cost control and operational efficiencies. The 7.5% EPS increase and 4.2% net income growth underscore strong earnings performance.

Price Action

DILLARD’S stock demonstrated notable momentum, rising 1.55% in the latest trading day, 4.20% over the prior week, and 17.33% month-to-date.

Post-Earnings Price Action Review

The strategy of buying DDS when revenues beat expectations and holding for 30 days delivered a 982.23% return, significantly outperforming the benchmark’s 85.52% gain. This 896.71% excess return highlights the strategy’s ability to capitalize on positive earnings surprises. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.12, the approach demonstrated disciplined risk management, preserving gains amid market volatility.

CEO Commentary

William (Bill) Dillard II, President and CEO, attributed the results to strategic investments in omnichannel capabilities and enhanced customer engagement. Despite supply chain challenges, resilient demand for premium private-label collections supported growth. The leadership emphasized balancing short-term profitability with long-term customer value, while maintaining cautious optimism amid macroeconomic uncertainties.

Guidance

Dillard’s outlined full-year 2026 targets, including revenue exceeding $6.2 billion and EPS growth of 12–14% year-over-year. Capital expenditures are projected at $150–$160 million, prioritizing digital infrastructure and store modernization. The company remains focused on disciplined inventory management and expanding partnerships with luxury vendors to strengthen market positioning.

Additional News

No significant non-earnings-related news for DILLARD’S was reported within the three-week period ending Dec 5, 2025. The provided additional content pertained to unrelated transactions at DFDS A/S, a separate entity.