Dillard’s, Inc. (NYSE:DDS) shares moved lower Tuesday despite stronger-than-expected profit results, as investors reacted to weaker sales trends.
The department store operator faced pressure from soft demand across several key merchandise categories.
• Dillard’s stock is taking a hit today. Why is DDS stock dropping?
Quarterly Metrics
The company reported fourth-quarter earnings per share of $13.05, beating the analyst consensus estimate of $10.61. Quarterly sales of $1.962 billion (down 2.7% year over year) missed the Street view of $2.029 billion.
Sales of ladies’ accessories and lingerie increased moderately year-over-year.
Sales were unchanged as a percentage, with moderate declines noted in ladies’ apparel, cosmetics, men’s apparel and accessories, juniors’ and children’s apparel, and home and furniture.
Total retail sales in the quarter under review were $1.916 billion (down 1% year over year). Sales in comparable stores for the same period decreased 1%.
Consolidated gross margin rose to 35.4% of sales for the 13 weeks ended Jan. 31, 2026, compared with 34.9% in the prior-year period. Retail gross margin remained unchanged at 36.1% of sales compared with the prior-year period.
Dillard’s exited the quarter with cash and equivalents worth $861.5 million. Merchandise inventories totaled $1.201 billion.
Outlook
Dillard’s expects depreciation and amortization of about $175 million for fiscal 2026, compared with $179 million in 2025.
The company projects rental expenses of roughly $18 million versus $19 million last year.
Capital expenditures are forecast at approximately $130 million, up from $93 million in the prior year.
DDS Price Action: Dillard’s shares are trading lower by 7.18% to $599.80 at publication on Tuesday.
