Dillard's Q4 Earnings Beat Estimates, Comparable Store Sales Down 1%

Core Insights - Dillard's Inc. (DDS) reported fourth-quarter fiscal 2025 results with a revenue miss against estimates, while earnings per share (EPS) exceeded expectations. However, both sales and earnings showed a year-over-year decline [1][2]. Financial Performance - EPS for the quarter was $10.08, surpassing the Zacks Consensus Estimate of $9.98, but down 25.1% from $13.48 in the same quarter last year [1]. - Net sales were $1.962 billion, a decrease of 2.7% from the prior-year quarter, missing the consensus estimate of $2.02 billion. Including service charges and other income, total sales were $1.989 billion, down 3% year over year [2]. - Total retail sales declined 1% year over year to $1.916 billion, with comparable store sales (comps) also decreasing by 1%. Performance varied across categories, with ladies' accessories and lingerie showing moderate growth, while declines were noted in several other categories [3]. Margin and Expenses - The consolidated gross margin increased by 50 basis points year over year to 35.4%, with retail gross margin remaining stable at 36.1%. Margins improved in ladies' apparel and juniors' and children's apparel, while declines were observed in men's apparel and accessories [4]. - Selling, general and administrative expenses (SG&A) as a percentage of sales rose to 23.6%, up 120 basis points from the prior-year quarter. In dollar terms, SG&A expenses increased by 2.4% year over year to $463 million, primarily due to higher payroll costs [5]. Cash Flow and Shareholder Returns - As of January 31, 2026, Dillard's had cash and cash equivalents of $861.5 million, long-term debt of $225.7 million, and total shareholders' equity of $1.78 billion. The company generated $717 million in net cash from operating activities [7]. - In Q4 fiscal 2025, Dillard's repurchased 30,000 shares for $107.8 million at an average price of $359.16 per share, with $165.2 million remaining under its current share repurchase authorization [8]. Future Outlook - For fiscal 2026, Dillard's anticipates depreciation and amortization expenses of $175 million, interest and debt income of $5 million, and rental expenses of $18 million [10]. - The company forecasts capital expenditure of $130 million for fiscal 2026, an increase from $93 million in fiscal 2025 [9].