Dillard's (DDS) investor relations material

Executive summary

• Second quarter 2025 saw a 1% increase in total and comparable retail sales year-over-year, with strengthening sales trends in July and a focus on inventory control in a dynamic environment.

• Net income for Q2 2025 was $72.8 million ($4.66 per share), slightly down from $74.5 million ($4.59 per share) in Q2 2024; results included a $4.8 million pretax gain from property sales.

• Net income for the first half was $236.7 million, down from $254.5 million year-over-year.

• Net cash from operating activities rose to $319.4 million for the six months ended August 2, 2025, up from $176.0 million in the prior year, mainly due to deferred tax payments after a federal disaster declaration.

• The company operated 272 stores and an internet store as of August 2, 2025.

Financial highlights

• Q2 2025 net sales were $1.514 billion, up from $1.490 billion in Q2 2024; six-month net sales were $3.043 billion, nearly flat year-over-year.

• Q2 2025 net income was $72.8 million, with EPS of $4.66; six-month net income was $236.7 million, with EPS of $15.08.

• Retail gross margin for Q2 2025 was 38.1% (down from 39.1%); overall gross margin was 36.6% (down from 37.6%).

• SG&A/operating expenses for Q2 2025 were $434.2 million (28.7% of sales), nearly flat year-over-year.

• Cash and cash equivalents at quarter-end were $1.012 billion; total debt was $521.6 million.

Outlook and guidance

• Management expects the fiscal 2025 effective tax rate to approximate 23%.

• The company anticipates initial cash flows from the new Citibank credit card alliance to be lower than those from the previous Wells Fargo alliance.

• Remaining construction contract obligations are expected to be satisfied over the next 9–18 months.

• Estimates for FY2025: depreciation and amortization $180M, rentals $20M, net interest income $(7)M, capital expenditures $120M.

• Management cautions that actual results may differ due to changing conditions and risks.