Dillard’s Reports Continued Sales Growth and Increased Profitability in Third Quarter
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By PAGE Editor
Dillard’s, Inc. (NYSE: DDS), the prominent department store retailer, has announced its financial results for the third quarter and the year-to-date period, revealing a continuation of sales strength and improved profitability for the quarter. In a statement, the Company’s Chief Executive Officer, William T. Dillard, II, commented on the performance, noting, “We were happy to see sales strength continue through the third quarter, ending up 3%. We look forward to seeing and serving our customers this holiday season.” The results for the 13 and 39 weeks ended November 1, 2025, highlight a positive quarterly trajectory alongside a more nuanced year-to-date picture.
The third quarter of 2025 proved to be a robust period for the retailer, marked by a 3% increase in both total retail sales and comparable store sales. This top-line growth successfully translated to the bottom line, with the Company reporting net income of $129.8 million, or $8.31 per share. This represents an increase from the $124.6 million, or $7.73 per share, earned in the same quarter of the prior year. A key driver of this improved profitability was a stronger retail gross margin, which expanded to 45.3% of sales from 44.5% a year ago, indicating the Company's effective management of its merchandise and pricing.
A closer look at the sales data reveals which categories fueled the quarter's growth. The Company experienced significant sales increases in ladies' accessories and lingerie, juniors' and children's apparel, and ladies' apparel. More moderate growth was seen in shoes, while home and furniture, men's apparel and accessories, and cosmetics categories saw slight increases. This diverse strength across multiple apparel categories underscores the broad-based nature of the consumer demand Dillard's captured during the period. The quarter did see an increase in operating expenses, which rose to $440.4 million, primarily due to higher payroll and payroll-related costs.
When reviewing the performance for the first 39 weeks of the fiscal year, the results show a more tempered outlook. For this year-to-date period, total retail sales increased by a more modest 1%, with comparable store sales also rising 1%. Net income for the 39 weeks was $366.5 million, or $23.39 per share, compared to $379.1 million, or $23.42 per share, for the same period in 2024. It is noteworthy that the current year's results include a pre-tax gain of $5.5 million, primarily from the sale of four properties. The retail gross margin for the year-to-date period was 42.9%, slightly below the 43.3% reported a year ago.
The Company also provided updates on its capital allocation and store portfolio. During the first 39 weeks of the year, Dillard’s continued its share repurchase program, buying back $107.8 million worth of its Class A Common Stock. Furthermore, the Company announced the upcoming closure of its store at The Shops at Willow Bend in Plano, Texas, which is expected to cease operations in January 2026. Dillard’s continues to operate a substantial retail footprint of 272 stores, including 28 clearance centers, across 30 states, in addition to its online store at dillards.com. As the crucial holiday season approaches, the Company appears to be building on a quarter of solid momentum.
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