Dillard's(NYSE) DDS

Dillard's helps families find clothes and home goods in one place. These stores serve shoppers across the southern and midwestern United States. People can shop inside physical stores or through an online website.

What's on the Shelves?

• Ladies' Apparel: Clothing for women such as dresses and casual outfits; accounts for 23% of net sales.
• Men's Apparel: Clothing and fashion accessories for male customers; represents 18% of net sales.
• Cosmetics and Shoes: Beauty items and various types of footwear; each makes up 15% of net sales.
• Accessories and Lingerie: Jewelry, handbags, and undergarments for women; contributes 13% of net sales.
• Construction Services: General building and contracting work through CDI Contractors; accounts for 3% of net sales.

New Moves and Deals

• Opened a new 160,000 square foot retail location at The Mall at Fairfield Commons in Ohio during early 2026.
• Consummated a merger with W.D. Company, a family holding company, in June 2026 to simplify the ownership structure.
• Amended a revolving credit agreement in March 2025 to provide a borrowing capacity of $800 million through 2030.
• Maintained a long-term marketing and servicing alliance with Citibank to manage private label credit card operations for customers.

Why Dillard's Stands Out

The company operates a dual-business model that combines traditional department store retail with specialized general contracting construction. This structure allows the business to manage its own store remodeling and new facility construction needs internally.

Tracking the Numbers

• Net sales reached $1.57 billion in Q1 2026, up 2.6% from the previous year.
• Net income reached $250.6 million in Q1 2026, up 53% from the previous year.
• Free cash flow reached $346.8 million in Q1 2026, up 60.7% from the previous year.
• Retail gross margin reached 45.8% in Q1 2026, up from 45.5% in the previous year.

A Stable Evolution

Dillard's has maintained a stable presence in the American retail landscape by focusing on regional department stores and internal construction capabilities. Its focus on inventory management and healthy margins supports its long-term operational strength.