Dillard’s earnings beat estimates by $0.30 as quarterly revenue holds at $1.48 billion
Key Facts
Dillard’s reported earnings per share of $8.38 in the third quarter of 2026, beating analysts’ estimate of $8.08 by $0.30, while revenue was $1.48 billion, in line with estimates. The company reported results on November 12 for the 13 weeks ended October 31, 2026. Net income was $130.9 million, compared with $129.8 million in the third quarter of the prior year, while earnings per share rose to $8.38 from $8.31. The figures show modest year-over-year increases in net income and earnings per share, alongside an earnings-per-share beat. Revenue was in line with expectations, according to the consensus estimate reported with the quarterly results.
Chief Executive William T. Dillard II said sales grew 1% in the quarter, after increasing 3% in the year-earlier period. He added that the company posted a retail gross margin of 45.3%, describing it as strong given sales growth. “We achieved sales growth of 1% on top of last year's 3% increase, supporting a strong retail gross margin of 45.3%,” he said in the results statement. The different growth rates reflect a slowdown in the pace of annual sales gains, while the retail margin remained at the level recorded a year earlier. Dillard linked the results to the company’s preparations for the holiday season, saying its stores and team were ready for the period.
Consolidated gross margin was 43.6% of sales, compared with 43.4% in the third quarter of the prior year. Retail gross margin was unchanged at 45.3%. The company highlighted these measures alongside sales growth as elements of the quarter’s results. For the 39 weeks ended October 31, 2026, net income was $479.1 million, compared with $366.5 million in the 39 weeks ended November 1, 2025. Earnings per share for the extended period rose to $30.68 from $23.39, though the nine-month results also included exceptional items that supported the year-over-year comparison.
The company said earnings for the 39-week period included fee refunds of $37.2 million and a pre-tax legal settlement gain of $104.1 million, net of legal fees. It said refunds of fees under the International Emergency Economic Powers Act supported the retail margin by 80 basis points during the period. These items relate to the 39-week period and are part of the nine-month results, rather than a separate description of third-quarter performance alone. Net income and earnings per share for that period were $479.1 million and $30.68, respectively, compared with $366.5 million and $23.39 in the prior period. The company said the fee refunds and settlement gain were included in the extended-period results, alongside the annual operating comparison.
In the market, Dillard’s shares closed at $634.33 on November 10, according to EL7 data. The stock had closed at $602.38 on November 6, before closing at $634.33 on November 10. These moves came before the results announcement on November 12 and therefore do not represent a subsequent trading response to the announcement. Verified figures for the session high and low on November 10 were not available in the approved data here. In its results statement, the company pointed to the holiday season as the next operating period, with the chief executive affirming that its stores and team were ready.
Dillard’s expects to close its clearance center at the Boynton Beach Mall in Florida in January 2027. The center covers 50,000 square feet, according to the company’s statement. For the fiscal year, the company provided estimates for certain items for the 52-week period ending January 30, 2027. These include estimated capital expenditures of $100 million. The fiscal year-end date places the spending estimate within the coming period identified by the company, while the clearance center closure remains the operating date specified in its statement.