Executive Summary

Q1 2026 EPS and revenue beat S&P Global consensus, driven by disciplined SG&A and resilient retail gross margin, despite modest comps decline; EPS $10.39 vs consensus $9.25, and revenue $1.547B vs consensus $1.541B. Net sales were $1.529B; consolidated gross margin 43.9%; retail gross margin 45.5% . Consensus figures marked with asterisks are from S&P Global (see Estimates Context).
Mix was mixed: strength in juniors/children and men’s apparel; softness in home/furniture, shoes and ladies’ apparel; inventory up 6% YoY as the company balanced availability with demand .
Guidance on FY2025 cost items (D&A, rentals, interest and capex) was maintained vs Q4, keeping capex at $120M and net interest income at ~$8M; repurchases totaled $98M (~276k shares) in the quarter, supporting EPS resilience .
Stock reaction: external coverage noted a positive response to the beat on May 15, 2025 (approx +6%), suggesting near-term support from the earnings surprise and capital returns .

What Went Well and What Went Wrong

What Went Well
- Beat on EPS and total revenue versus S&P consensus, with disciplined SG&A (27.6% of sales) and healthy retail gross margin (45.5%): “We kept expenses under control and reported a healthy gross margin” — CEO William T. Dillard, II .
- Category strength in juniors/children and men’s apparel supported margin quality despite comps -1% .
- Strong capital returns and liquidity: $98M buybacks (~276k shares) and $1.2B cash + short-term investments; authorization remaining $175M under the program .
What Went Wrong
- Top-line softness: total retail sales -2% and comps -1%; weaker categories included home/furniture, shoes and ladies’ apparel .
- Margin compression YoY: retail gross margin down 70bps (45.5% vs 46.2%) and consolidated GM down 70bps (43.9% vs 44.6%) .
- Inventory +6% YoY, indicating heavier positions amid uncertain demand; investors will watch conversion in coming quarters .

Quarterly comparison (oldest → newest)

Metric	Q3 2025	Q4 2025	Q1 2026
Net Sales ($USD Billions)	$1.427	$2.017	$1.529
Total Revenue incl. Service Charges ($USD Billions)	$1.451	$2.052	$1.547
Consolidated Gross Margin %	42.6%	34.9%	43.9%
Retail Gross Margin %	44.5%	36.1%	45.5%
Operating Expenses ($USD Millions)	$418.9	$452.0	$421.7
Operating Expenses (% of Sales)	29.4%	22.4%	27.6%
Net Income ($USD Millions)	$124.6	$214.4	$163.8
Diluted EPS ($USD)	$7.73	$13.48	$10.39
Net Income Margin %	8.7%	10.6%	10.7%

Year-over-year (Q1 2025 → Q1 2026)

Metric	Q1 2025	Q1 2026
Net Sales ($USD Billions)	$1.549	$1.529
Total Retail Sales ($USD Billions)	$1.493	$1.468
Comparable Store Sales (%)	- [ - ]	-1%
Consolidated Gross Margin %	44.6%	43.9%
Retail Gross Margin %	46.2%	45.5%
Operating Expenses ($USD Millions)	$426.7	$421.7
Operating Expenses (% of Sales)	27.5%	27.6%
Net Income ($USD Millions)	$180.0	$163.8
Diluted EPS ($USD)	$11.09	$10.39
Inventory Change YoY (%)	—	+6%

Segment breakdown (Retail vs. Net Sales)

Metric	Q3 2025	Q4 2025	Q1 2026
Total Retail Sales ($USD Billions)	$1.356	$1.943	$1.468
Net Sales (incl. CDI) ($USD Billions)	$1.427	$2.017	$1.529

Estimates vs. Actual (Q1 2026)

Metric	Consensus*	Actual
Primary EPS ($USD)	$9.25*	$10.39
Revenue ($USD Billions)	$1.541*	$1.547

Values retrieved from S&P Global.

Key KPIs

KPI	Q3 2025	Q4 2025	Q1 2026
Comparable Store Sales YoY (%)	-4%	-1%	-1%
Inventory YoY (%)	+3%	+7%	+6%
Share Repurchases ($USD Millions)	$107.0	$14.0	$98.0
Total Stores (incl. clearance centers)	273	272	272

Metric	Period	Previous Guidance	Current Guidance	Change
Depreciation & Amortization ($USD Millions)	FY2025	180	180	Maintained
Rentals ($USD Millions)	FY2025	20	20	Maintained
Interest and debt (income) expense, net ($USD Millions)	FY2025	(8)	(8)	Maintained
Capital Expenditures ($USD Millions)	FY2025	120	120	Maintained

Note: Dillard’s does not conduct earnings calls; themes are from company releases.

Topic	Previous Mentions (Q3 2025)	Previous Mentions (Q4 2025)	Current Period (Q1 2026)	Trend
Expense control	Worked to control expenses; SG&A 29.4% of sales	SG&A 22.4% of sales; reduced partly due to calendar effects	SG&A $421.7M, 27.6% of sales; “kept expenses under control”	Improving/Stable
Gross margin discipline	Retail GM 44.5%; focus maintained	Retail GM 36.1%; softness vs prior year	Retail GM 45.5%; consolidated GM 43.9%	Rebound QoQ
Inventory management	Inventory +3% YoY	Inventory +7% YoY	Inventory +6% YoY	Elevated but improving vs Q4
Category performance	Cosmetics strongest; juniors/children and men’s weaker	Stronger: home and cosmetics; weaker: men’s and shoes	Stronger: juniors/children, men’s; weaker: home/furniture, shoes, ladies’ apparel	Mixed
Capital allocation	$107M repurchases	$14M repurchases; $273M authorization remaining	$98M repurchases; $175M authorization remaining	Consistent
Store footprint	273 stores	272 stores; announced a future closure (Plano)	272 stores	Stable

“We turned in a relatively good first quarter in light of the prevailing economic uncertainty. We kept expenses under control and reported a healthy gross margin. After repurchasing $98 million in stock, we had $1.2 billion in cash and short-term investments remaining.” — CEO William T. Dillard, II (Q1 2026) .
“We were happy to see sales strength continue through the third quarter, ending up 3%.” — CEO William T. Dillard, II (Q3 2026 release) .
“We were happy to achieve a sales increase for the first time in a while and encouraged by strengthening sales trends in July.” — CEO William T. Dillard, II (Q2 2026 release) .

Dillard’s does not hold quarterly earnings calls; therefore, no Q&A or analyst clarifications were provided .

Results vs S&P Global consensus: EPS $10.39 vs $9.25* (beat); revenue $1.547B vs $1.541B* (beat). EPS surprise was meaningful, supported by SG&A discipline and healthy retail gross margin; revenue beat was modest . Consensus values retrieved from S&P Global via tool; Primary EPS # of estimates: 1*; Revenue # of estimates: 3*.
Given soft comps and category pressure in home/furniture, shoes, and ladies’ apparel, revenue estimates may stabilize near-term, while EPS estimates could drift higher if expense control persists and buybacks continue .

Values retrieved from S&P Global.

Near-term: EPS outperformance and continued buybacks are supportive; trading likely reacts favorably to sustained margin discipline and repurchase cadence, even with modest top-line softness .
Watch inventory normalization: +6% YoY requires strong conversion in coming quarters; monitor mix and markdown risk, especially in softer categories .
Margin quality: Retail GM at 45.5% and SG&A restraint underpin profitability; risks include category mix and macro demand variability .
Capital allocation: $98M buybacks in Q1 and $175M remaining authorization signal ongoing EPS support; dividend continuity ($0.25/share) adds yield stability .
Guidance items stable: FY2025 D&A (180), rentals (20), net interest income (~$8), capex (120) maintained vs Q4; watch any intra-year capex revisions like Q3’s 100 level .
Category rotation: Strength in juniors/children and men’s; weakness in home/furniture, shoes, ladies’ apparel; merchandising actions to rebalance mix could be a catalyst .
Structural note: With no earnings calls, rely on filings/releases; limited Street coverage can amplify price reactions to reported metrics and buyback actions .