Dillard's (DDS) investor relations material

Executive summary

• Sales strength continued through Q3 2025, with total and comparable retail sales up 3% year-over-year and retail gross margin improving by 80 basis points to 45.3%.

• Net income for the quarter was $129.8 million ($8.31 per share), up from $124.6 million ($7.73 per share) in Q3 2024.

• For the 39 weeks, net income was $366.5 million ($23.39 per share), slightly down from $379.1 million ($23.42 per share) year-over-year.

• Cash flow from operations for the nine months ended November 1, 2025, was $505.9 million, a significant increase from $349.4 million in the prior year period.

• The company operated 272 stores and an internet store as of November 1, 2025.

Financial highlights

• Q3 2025 net sales were $1.47 billion, up from $1.43 billion in Q3 2024; nine-month net sales reached $4.51 billion, up from $4.47 billion year-over-year.

• Retail gross margin for Q3 2025 was 45.3% of sales, up from 44.5% last year.

• SG&A expenses rose to 30.0% of sales in Q3 2025 from 29.4% in Q3 2024, mainly due to higher payroll costs.

• Cash and cash equivalents at quarter-end were $1.15 billion, with total debt of $521.6 million.

• Earnings per share for the nine months were $23.39, nearly flat year-over-year.

Outlook and guidance

• Fiscal 2025 federal and state effective income tax rate is expected to approximate 19%, reflecting tax benefits from a special dividend.

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

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

• Estimates for the 52-week period ending January 31, 2026: depreciation and amortization $180 million, rentals $20 million, net interest income $7 million, capital expenditures $100 million.