Dillard’s, Inc. (NYSE:DDS) shares rallied 4.79% in pre-market trading on Thursday after the retailer posted third-quarter results that far exceeded Wall Street estimates, driven by solid sales momentum and stronger profitability.
For the quarter ended November 1, 2025, the department store chain reported earnings per share of $8.31—well ahead of analyst expectations of $5.80. Revenue reached $1.47 billion, topping the consensus estimate of $1.41 billion. Total retail sales were up 3% year-over-year, with comparable store sales rising at the same pace.
“We were happy to see sales strength continue through the third quarter, ending up 3%,” said William T. Dillard, II, Chief Executive Officer. “We look forward to seeing and serving our customers this holiday season.”
Net income rose to $129.8 million from $124.6 million in the year-ago period. Retail gross margin expanded to 45.3% of sales, compared with 44.5% a year earlier, highlighting improved performance across several categories.
Dillard’s reported notable sales gains in ladies’ accessories and lingerie, juniors’ and children’s apparel, and ladies’ apparel. The retailer also posted moderate increases in shoes and modest growth across home and furniture, men’s apparel and accessories, and cosmetics.
Operating expenses totaled $440.4 million, or 30.0% of sales, up from $418.9 million (29.4% of sales) last year, reflecting higher payroll and payroll-related costs.
Inventory increased 2% from the prior-year period, signaling disciplined stock management amid higher demand.
Over the first 39 weeks of fiscal 2025, the company repurchased roughly 300,000 shares of Class A Common Stock for $107.8 million at an average price of $359.16 per share. As of November 1, 2025, Dillard’s operated 272 stores.