Dillard's, Inc. (DDS)'s Stock Hits $611 High as Q2 Sales, Buybacks Boost Investor Confidence

We recently compiled a list of the 12 Best Stocks to Own for Grandchildren. Dillard’s, Inc. is one of them

Dillard’s, Inc. (NYSE:DDS), a major U.S. retailer specializing in fashion, cosmetics, home furnishings, and accessories, reported steady Q2 2025 results, with net income of $72.8 million, or $4.66 per share, nearly matching last year’s performance. Total retail sales rose 1% to $1.447 billion, with comparable store sales also up 1%. Growth was strongest in juniors’, children’s apparel, and ladies’ accessories, while home and furniture sales remained weak. Gross margin slightly declined to 38.1% from 39.1%, and inventory management improved, increasing just 2% year-over-year. The company repurchased 24,500 shares for $9.8 million during the quarter, leaving $165.2 million in its ongoing buyback program.

Investor confidence has surged, with DDS’s stock reaching a 52-week high of $611.98 in September 2025, a year-to-date gain of 38%. The company maintains a quarterly dividend of $0.30 per share and ended the quarter with over $1 billion in cash, reducing long-term debt to $225.6 million, reflecting strong financial health.

Strategically, Dillard’s, Inc. (NYSE:DDS) focuses on store remodels, trend-driven merchandise, and expanding omni-channel capabilities. Partnerships, such as with Pandora Jewelry, have grown rapidly, now featuring 100 Pandora locations inside the corporation’s stores, enhancing product offerings and customer engagement.

While we acknowledge the potential of DDS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy NOW 

Disclosure: None.