Dillard’s flat retail sales yield $570M annual profit, issues $30 dividend
Dillard’s reported fiscal‐year net income of $570.2 million, EPS $36.42, with flat retail sales, 40.8% gross margin, and a 2% inventory increase as operating expenses rose to 27.2% of sales. Fourth‐quarter net income declined to $203.7 million, EPS $13.05, on a 1% drop in comparable store sales.
1. Fiscal Year Performance
Dillard’s net income for fiscal 2026 reached $570.2 million, or $36.42 per share, versus $593.5 million, or $36.82 per share a year earlier. Net sales totaled $6.474 billion, with retail sales flat at $6.232 billion; retail gross margin narrowed to 40.8% from 41.0% as operating expenses rose to 27.2% of sales and inventory increased by 2%.
2. Fourth Quarter Results
In Q4, net income declined to $203.7 million, or $13.05 per share, from $214.4 million, or $13.48 per share year‐over‐year. Total retail sales fell 1% to $1.916 billion, while comparable store sales also slipped 1%, and retail gross margin held steady at 36.1% despite a rise in operating expenses to 23.6% of sales.
3. Dividend and Cash Position
The board approved a record $30.00 per share special dividend, the largest in company history, and returned shareholder value while maintaining liquidity. Dillard’s ended the year with $1.1 billion in cash and short-term investments, buoyed by $20.4 million in pretax property sale gains and $35.0 million in tax benefits related to the special dividend.