Dillard’s Inc. reported third‑quarter 2025 results that surpassed analyst expectations, delivering net income of $129.8 million and earnings per share of $8.31. Total sales for the 13‑week period ending November 1 rose 3% year‑over‑year to $1.469 billion, a gain of $42 million over the same period in 2024.
The sales increase was driven by a 3% rise in retail operations, which generated $1.401 billion in revenue. Strong performance in ladies’ accessories, juniors, and children’s apparel, combined with a favorable product‑mix shift, lifted the retail segment. The construction arm, CDI Contractors, contributed $68 million in net sales, keeping the overall revenue mix balanced.
Gross margin expanded to 43.4% of sales, up from 42.6% a year earlier. The improvement reflects higher pricing power in key apparel categories and disciplined inventory management, which kept inventory levels only 2% above the prior year at $1.02 billion. Operating expenses increased to $440.4 million, or 30.0% of sales, largely due to payroll costs, but the expense‑to‑sales ratio remained close to the 29% level of the previous year.
Management highlighted a strategic focus on store optimization, noting the planned closure of the 240,000‑square‑foot store at The Shops at Willow Bend in Plano, Texas, scheduled for January 2026. The move is part of a broader effort to concentrate resources on higher‑performing locations and improve profitability across the portfolio.
CEO William T. Dillard, II said, “We were happy to see sales strength continue through the third quarter, ending up 3%. We look forward to serving our customers this holiday season.” The upbeat outlook, coupled with the earnings beat and margin expansion, signals confidence in the company’s ability to navigate a challenging retail environment while positioning for the critical holiday period.
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