Core Viewpoint - Dillard's has reported strong Q2 results, exceeding EPS expectations and demonstrating operational efficiency, modest sales growth, and effective capital allocation [1][4]. Financial Performance - Q2 sales reached $1.51 billion, marking a 2% increase from the previous year and slightly surpassing estimates by 0.19% [3]. - Q2 earnings per share (EPS) were reported at $4.66, exceeding expectations of $3.79 by nearly 23% and reflecting a 1% increase from the prior year [4]. - Dillard's achieved an average earnings surprise of 24.04% over the last four quarters, consistently exceeding Zacks EPS Consensus [5]. Market Position and Strategy - Dillard's differentiates itself from competitors like Macy's and Kohl's through its focus on exclusive merchandise and private label brands in fashion apparel and home furnishings [2]. - The company has maintained a strong digital presence and loyalty initiatives, contributing to improved sales trends, particularly in adolescent apparel, ladies' accessories, and lingerie [3]. Valuation Metrics - Dillard's is trading at 16.3 times forward earnings, which is a discount compared to the S&P 500 and significantly lower than Kohl's 39 times forward earnings multiple [8]. - The stock is also below the optimal sales level of less than 2 times sales, currently at 1.2 times [9]. Earnings Estimates - Recent revisions for fiscal 2025 EPS estimates have increased by 2%, from $29.84 to $30.47, while fiscal 2026 estimates have risen by 9%, from $25.25 to $27.50 [10]. - The current Zacks Rank for Dillard's is 1 (Strong Buy), indicating positive sentiment in the market following the favorable Q2 report [11].

Core Insights - Dillard's, Inc. reported second-quarter earnings of $4.66 per share, exceeding the analyst consensus estimate of $3.44 per share [1] - The company achieved quarterly sales of $1.513 billion, surpassing the analyst consensus estimate of $1.497 billion [1] Financial Performance - The CEO highlighted a sales increase for the first time in a while and noted strengthening sales trends in July [2] - Dillard's focused on inventory control, ending up with a 2% increase compared to 6% at the end of the first quarter [2] Stock Market Reaction - Following the earnings announcement, Dillard's shares gained 3%, trading at $513.80 [2] Analyst Ratings and Price Targets - Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating and raised the price target from $450 to $550 [7] - UBS analyst Mauricio Serna maintained a Sell rating and raised the price target from $170 to $175 [7]

[Operating Results Overview](index=1&type=section&id=Operating%20Results%20Overview) This section details Dillard's Q2 and year-to-date fiscal 2025 performance, covering sales, margins, expenses, and share repurchases [Second Quarter Fiscal 2025 Performance](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Performance) Dillard's Q2 fiscal 2025 saw a 1% sales increase, but net income slightly decreased to $72.8 million, with retail gross margin contracting to 38.1% [Key Highlights](index=1&type=section&id=Key%20Highlights%20-%20Q2) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Retail Sales Growth | +1% | - | | Comparable Store Sales Growth | +1% | - | | Net Income | $72.8 million | $74.5 million | | Earnings Per Share (EPS) | $4.66 | $4.59 | | Retail Gross Margin | 38.1% | 39.1% | | Operating Expenses (% of Sales) | 28.7% | 29.1% | | Ending Inventory Growth | +2% | - | [Sales](index=1&type=section&id=Sales%20-%20Q2) | Sales Category | Q2 2025 (13 weeks) | Q2 2024 (13 weeks) | | :--- | :--- | :--- | | Net Sales (incl. CDI) | $1.514 billion | $1.490 billion | | Total Retail Sales | $1.447 billion | $1.426 billion | - Stronger performing categories included juniors' and children's apparel, and ladies' accessories and lingerie[4](index=4&type=chunk) - Home and furniture was the weakest performing category during the quarter[4](index=4&type=chunk) [Gross Margin](index=3&type=section&id=Gross%20Margin%20-%20Q2) | Margin Type | Q2 2025 (% of sales) | Q2 2024 (% of sales) | | :--- | :--- | :--- | | Consolidated Gross Margin | 36.6% | 37.6% | | Retail Gross Margin | 38.1% | 39.1% | - Retail gross margin performance varied by category, with moderate increases in shoes, slight increases in ladies' accessories and lingerie, but a significant decrease in ladies' apparel[7](index=7&type=chunk) - Inventory increased **2%** year-over-year as of August 2, 2025[8](index=8&type=chunk) [Selling, General & Administrative (SG&A) Expenses](index=3&type=section&id=Selling%20General%20%26%20Administrative%20%28SG%26A%29%20Expenses%20-%20Q2) | Expense Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Consolidated SG&A | $434.2 million | $433.6 million | | SG&A as % of Sales | 28.7% | 29.1% | - Operating expenses remained relatively flat, with savings in payroll expense being offset by increases in other expense categories[9](index=9&type=chunk) [Year-to-Date (26 Weeks) Fiscal 2025 Performance](index=3&type=section&id=Year-to-Date%20%2826%20Weeks%29%20Fiscal%202025%20Performance) Year-to-date fiscal 2025 performance was flat in sales, with net income declining to $236.7 million and EPS falling to $15.08 [Key Highlights](index=3&type=section&id=Key%20Highlights%20-%20YTD) | Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Total Retail Sales Growth | Flat | - | | Comparable Store Sales Growth | Flat | - | | Net Income | $236.7 million | $254.5 million | | Earnings Per Share (EPS) | $15.08 | $15.68 | | Retail Gross Margin | 41.8% | 42.7% | | Operating Expenses (% of Sales) | 28.1% | 28.3% | [Sales](index=4&type=section&id=Sales%20-%20YTD) | Sales Category | YTD 2025 (26 weeks) | YTD 2024 (26 weeks) | | :--- | :--- | :--- | | Net Sales (incl. CDI) | $3.043 billion | $3.039 billion | | Total Retail Sales | $2.915 billion | $2.919 billion | [Gross Margin](index=4&type=section&id=Gross%20Margin%20-%20YTD) | Margin Type | YTD 2025 (% of sales) | YTD 2024 (% of sales) | | :--- | :--- | :--- | | Consolidated Gross Margin | 40.3% | 41.2% | | Retail Gross Margin | 41.8% | 42.7% | [Selling, General & Administrative (SG&A) Expenses](index=4&type=section&id=Selling%20General%20%26%20Administrative%20%28SG%26A%29%20Expenses%20-%20YTD) | Expense Metric | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | | Consolidated SG&A | $855.9 million | $860.3 million | | SG&A as % of Sales | 28.1% | 28.3% | - The decrease in year-to-date operating expenses was primarily driven by lower payroll expense[15](index=15&type=chunk) [Share Repurchase and Capital Allocation](index=4&type=section&id=Share%20Repurchase%20and%20Capital%20Allocation) Dillard's repurchased $107.8 million of Class A Common Stock year-to-date, reducing shares outstanding and leaving $165.2 million authorized | Period | Amount Repurchased | Shares Repurchased | Average Price | | :--- | :--- | :--- | :--- | | Q2 2025 (13 weeks) | $9.8 million | ~24,500 | $398.67 | | YTD 2025 (26 weeks) | $107.8 million | ~300,000 | $359.16 | - As of August 2, 2025, **$165.2 million** remained under the May 2023 share repurchase authorization[16](index=16&type=chunk) - Total shares outstanding (Class A and B) decreased to **15.6 million** at the end of Q2 2025, compared to 16.2 million at the same time in 2024[17](index=17&type=chunk) [Financial Statements](index=5&type=section&id=Financial%20Statements) This section presents the condensed consolidated statements of income, balance sheets, and cash flows for the reported periods [Condensed Consolidated Statements of Income](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) The income statement reflects a slight decrease in net income for both Q2 and year-to-date periods, driven by lower gross margin | (In Millions, Except Per Share Data) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net Sales | $1,513.8 | $1,489.9 | $3,042.7 | $3,039.0 | | Gross Profit* | $554.5 | $559.6 | $1,225.7 | $1,250.8 | | SG&A Expenses | $434.2 | $433.6 | $855.9 | $860.3 | | Income Before Taxes | $94.6 | $97.1 | $308.3 | $331.9 | | Net Income | $72.8 | $74.5 | $236.7 | $254.5 | | Diluted EPS | $4.66 | $4.59 | $15.08 | $15.68 | *Gross Profit calculated as Net Sales - Cost of Sales* [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet shows strong liquidity with cash exceeding $1.0 billion, stable total assets, and reduced long-term debt | (In Millions) | August 2, 2025 | August 3, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $1,012.0 | $946.7 | | Merchandise inventories | $1,219.8 | $1,191.4 | | Total current assets | $2,572.1 | $2,453.5 | | Total assets | $3,684.5 | $3,661.9 | | **Liabilities & Equity** | | | | Total current liabilities | $958.7 | $780.3 | | Long-term debt | $225.6 | $321.5 | | Stockholders' equity | $1,919.1 | $1,948.9 | | Total liabilities and stockholders' equity | $3,684.5 | $3,661.9 | [Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow significantly increased to $319.4 million year-to-date, with positive investing cash flow and financing cash used for repurchases | (In Millions) | 26 Weeks Ended 2025 | 26 Weeks Ended 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $319.4 | $175.9 | | Net cash provided by (used in) investing activities | $93.7 | $(29.4) | | Net cash used in financing activities | $(119.0) | $(8.1) | | **Increase in cash and cash equivalents** | **$294.1** | **$138.4** | [Company Outlook and Forward-Looking Statements](index=8&type=section&id=Company%20Outlook%20and%20Forward-Looking%20Statements) This section provides fiscal 2025 estimates and outlines key risks and uncertainties affecting future performance [Estimates for Fiscal 2025](index=8&type=section&id=Estimates%20for%20Fiscal%202025) Fiscal 2025 estimates project increased capital expenditures to $120 million, stable depreciation, and decreased net interest income | (In Millions) | 2025 Estimated | 2024 Actual | | :--- | :--- | :--- | | Depreciation and amortization | $180 | $178 | | Rentals | $20 | $21 | | Interest and debt (income) expense, net | $(7) | $(14) | | Capital expenditures | $120 | $105 | [Forward-Looking Information](index=8&type=section&id=Forward-Looking%20Information) Forward-looking statements are subject to risks including economic conditions, competition, supply chain issues, and consumer spending changes - The report contains forward-looking statements based on management's current estimates and assumptions, which are not guarantees of future performance[23](index=23&type=chunk) - Key risks include inflation, economic recession, competitive pressures from various retail channels, labor shortages, supply chain issues, and changes in consumer spending habits[23](index=23&type=chunk)[24](index=24&type=chunk)

Core Insights - Dillard's is outperforming expectations and reaching all-time highs in stock price, with shares up 5.4% recently [1] - The company reported a 1.4% increase in revenue and a 1% rise in same-store sales compared to the previous year, despite a slight decline in margins and a 2.3% drop in net income [2] - Earnings per share (EPS) increased by 1.5% to $4.66, significantly beating analyst expectations by over 10% [2] - CEO William T. Dillard indicated stronger sales trends in July, suggesting positive momentum for the current quarter [3] - Dillard's unique strategy of owning real estate rather than leasing allows for competitive pricing and profitability [3] - The company's ownership structure, with over 50% of shares held by the Dillard family and employee stock fund, differentiates it from other department stores [5] - Despite recent gains, shares are trading at a modest 14.5 times earnings, indicating a reasonable valuation for a consistently profitable company [6]

Company Performance - Dillard's reported quarterly earnings of $4.66 per share, exceeding the Zacks Consensus Estimate of $3.79 per share, and showing an increase from $4.59 per share a year ago, resulting in an earnings surprise of +22.96% [1] - The company achieved revenues of $1.51 billion for the quarter ended July 2025, surpassing the Zacks Consensus Estimate by 0.20% and up from $1.49 billion year-over-year [2] - Dillard's has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Stock Outlook - Dillard's shares have increased approximately 15.3% since the beginning of the year, outperforming the S&P 500's gain of 10% [3] - The company's earnings outlook is crucial for investors, with current consensus EPS estimates at $6.76 for the coming quarter and $30.47 for the current fiscal year [7] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating expectations for it to outperform the market in the near future [6] Industry Context - The Retail - Regional Department Stores industry, to which Dillard's belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable environment for stock performance [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Viewpoint - Dillard's, Inc. reported a modest increase in sales for the second quarter of 2025, with net income slightly down compared to the previous year, indicating a mixed performance in a challenging retail environment [1][2]. Second Quarter Results - Net income for the 13 weeks ended August 2, 2025, was $72.8 million, or $4.66 per share, compared to $74.5 million, or $4.59 per share, for the same period in 2024 [2][18]. - Net sales for the quarter were $1.514 billion, up from $1.490 billion in the prior year [3][18]. - Total retail sales, excluding the construction business, increased by 1% to $1.447 billion compared to $1.426 billion in the previous year [4][18]. - Comparable store sales also increased by 1% during the same period [4][18]. Gross Margin - Consolidated gross margin for the second quarter was 36.6% of sales, down from 37.6% in the prior year [5][18]. - Retail gross margin was 38.1% of sales, compared to 39.1% in the previous year, with variations across product categories [6][18]. Inventory and Expenses - Inventory increased by 2% as of August 2, 2025, compared to the previous year [7][18]. - Selling, general, and administrative expenses for the quarter were $434.2 million, representing 28.7% of sales, slightly down from 29.1% in the prior year [8][18]. 26-Week Results - For the 26 weeks ended August 2, 2025, net income was $236.7 million, or $15.08 per share, down from $254.5 million, or $15.68 per share, in the same period in 2024 [11][18]. - Net sales for the 26 weeks were $3.043 billion, slightly up from $3.039 billion in the previous year [12][18]. - Total retail sales for the 26 weeks were flat at $2.915 billion compared to $2.919 billion in the prior year [12][18]. - Retail gross margin for the 26 weeks was 41.8% of sales, down from 42.7% in the previous year [13][18]. Share Repurchase - During the second quarter, the company repurchased $9.8 million worth of Class A Common Stock, and $107.8 million during the 26 weeks, with remaining authorization of $165.2 million under the May 2023 program [15][18]. Other Information - Dillard's operates 272 stores across 30 states, including 28 clearance centers, and has an online presence at dillards.com [17][18].

Core Viewpoint - Dillard's, Inc. announced a cash dividend of $0.25 per share, reflecting the company's ongoing commitment to returning value to shareholders [1] Group 1: Company Financials - The Board of Directors declared a cash dividend of $0.25 per share [1]

Core Viewpoint - Dillard's, Inc. is set to announce its financial results for the 13 and 26 weeks ended August 2, 2025, before the opening of the New York Stock Exchange [1] Company Information - The announcement will take place on August 14, 2025 [1] - Julie J. Guymon is the Director of Investor Relations for Dillard's, Inc. [1] - Contact information for investor relations includes a phone number and email address [1]

Core Insights - Dillard's, Inc. is expected to report a year-over-year revenue increase of 1.4% for the second quarter of fiscal 2025, with estimated revenues of $1.51 billion, while earnings per share are projected to decline by 17.4% to $3.79 [1][6] Group 1: Financial Performance - The consensus estimate for Dillard's second-quarter revenues indicates a rise from the previous year, while earnings are expected to show a significant decline [1] - In the last reported quarter, Dillard's achieved an earnings surprise of 14.2%, with an average earnings surprise of 12.7% over the trailing four quarters [2] - The company is predicted to experience a 26.2% year-over-year decline in operating profit, with a contraction of 180 basis points in the operating margin [6] Group 2: Growth Drivers - Dillard's strategic efforts, including inventory management, store and e-commerce expansion, and trendy merchandise, are expected to drive its second-quarter results [3][4] - The company is focusing on enhancing brand relationships, remodeling stores, and optimizing its activewear segment, which is anticipated to widen its customer base and boost overall sales [5][9] - Comparable-store sales are projected to rise by 1.3% year over year, while retail sales are expected to grow by 1.1% for the fiscal second quarter [5] Group 3: Market Position and Valuation - Dillard's is trading at a premium compared to industry and historical benchmarks, with a forward 12-month price-to-sales ratio of 1.15X, significantly higher than the industry average of 0.34X [8] - The company's stock has gained 23.6% over the past three months, outperforming the industry growth of 16.8% [10]

Core Viewpoint - Dillard's (DDS) has shown a downtrend recently, losing 6.1% over the past week, but a hammer chart pattern suggests a potential trend reversal due to increased buying interest [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be exhausting, which could lead to a trend reversal [2][5]. - The hammer pattern forms when there is a small candle body with a long lower wick, indicating that despite a new low, buying interest emerges to push the stock price up towards the opening price [4][5]. - This pattern is significant when it occurs at the bottom of a downtrend, signaling that bears may be losing control [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for DDS, which is a bullish indicator suggesting potential price appreciation [7]. - The consensus EPS estimate for DDS has increased by 2.1% over the last 30 days, indicating that analysts expect better earnings than previously predicted [8]. - DDS holds a Zacks Rank of 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, which typically outperform the market [9][10].