Dillard's (DDS) investor relations material

Executive summary

• Net income for Q1 2026 was $250.6 million ($16.04 per share), up from $163.8 million ($10.39 per share) in Q1 2025, aided by a $104.1 million pre-tax gain from a credit card litigation settlement.

• Comparable store sales and total retail sales both increased 3% year-over-year, with retail gross margin rising to 45.8% from 45.5%.

• Operating cash flow rose to $364.0 million from $232.6 million year-over-year.

• Inventory increased 3% year-over-year; SG&A expenses rose to $444.0 million (28.3% of sales) from $421.7 million (27.6%).

• The company operated 272 stores and an internet store as of May 2, 2026.

Financial highlights

• Net sales were $1,568.4 million, up from $1,528.9 million year-over-year.

• Gross margin improved to 44.5% of net sales, with retail gross margin at 45.8%.

• Net income margin increased to 16.0% from 10.7% year-over-year.

• Cash and cash equivalents stood at $1.158 billion; total debt was $521.7 million.

• No shares were repurchased in Q1 2026; $165.2 million remains authorized under the repurchase plan.

Outlook and guidance

• Management expects the effective tax rate for fiscal 2026 to approximate 23%.

• Remaining performance obligations for construction contracts totaled $176.9 million, expected to be satisfied over the next 9–18 months.

• The company plans to finance operations through cash on hand, operating cash flow, and available credit.