Dillard's Q4 Earnings Beat Expectations Despite Revenue Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DDS?
Source: seekingalpha
- Earnings Beat: Dillard's reported a Q4 GAAP EPS of $13.05, exceeding expectations by $1.56, indicating strong profitability despite challenges in the retail environment.
- Revenue Decline: The revenue for Q4 was $1.99 billion, down 2.9% year-over-year and missing estimates, reflecting the difficulties faced in the current retail landscape, particularly due to adverse weather conditions.
- Retail Sales Figures: Total retail sales for the 13 weeks ended January 31, 2026, were $1.916 billion, a 1% decrease from $1.943 billion in the same period last year, highlighting increasing market competition and sluggish consumer spending.
- Store Disruptions: The company noted that sales in over a third of its stores were disrupted by a winter storm event during the third weekend of January 2026, which likely had a negative impact on overall performance.
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Analyst Views on DDS
Wall Street analysts forecast DDS stock price to fall
2 Analyst Rating
0 Buy
0 Hold
2 Sell
Moderate Sell
Current: 646.180
Low
460.00
Averages
492.00
High
524.00
Current: 646.180
Low
460.00
Averages
492.00
High
524.00
About DDS
Dillard's, Inc. is a retailer of fashion apparel, cosmetics and home furnishings. The Company’s segments include the operation of retail department stores and a general contracting construction company. It operates 272 Dillard’s stores, including 28 clearance centers, and an Internet store at dillards.com offering a wide selection of merchandise including fashion apparel for women, men and children, accessories, cosmetics, home furnishings and other consumer goods. The Company also operates a general contracting construction company, CDI Contractors, LLC (CDI), a portion of whose business includes constructing and remodeling stores for the Company. Its merchandise selections include its lines of exclusive branded merchandise, such as Antonio Melani, Gianni Bini, GB, Roundtree & Yorke and Daniel Cremieux. Its retail stores are located primarily in shopping malls and open-air centers throughout the southwest, southeast and Midwest regions of the United States.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Dillard's Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Dillard's reported a Q4 GAAP EPS of $13.05, exceeding expectations by $1.56, indicating strong profitability despite challenges in the retail environment.
- Revenue Decline: The revenue for Q4 was $1.99 billion, down 2.9% year-over-year and missing estimates, reflecting the difficulties faced in the current retail landscape, particularly due to adverse weather conditions.
- Retail Sales Figures: Total retail sales for the 13 weeks ended January 31, 2026, were $1.916 billion, a 1% decrease from $1.943 billion in the same period last year, highlighting increasing market competition and sluggish consumer spending.
- Store Disruptions: The company noted that sales in over a third of its stores were disrupted by a winter storm event during the third weekend of January 2026, which likely had a negative impact on overall performance.
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- Dividend Policy Advantage: With a 15-year track record of dividend growth averaging 12.9% annually over the past five years, combined with a forward yield of 4.8%, Dillard's is expected to continue delivering solid capital returns in the future.
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- Target's Turnaround Potential: Target's stock has rallied over the past year, with a forward yield of 4.1% and a payout ratio nearing 60%, while its 57 years of consecutive dividend growth, coupled with pressure from activist hedge funds, may further enhance management's turnaround efforts, positively impacting share price and dividend growth prospects.
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- Sustained Dividend Growth: With a 15-year track record of dividend growth averaging 12.9% annually over the last five years, Dillard's is expected to maintain a forward yield of 4.8%, enhancing investor return expectations.
- Nexstar Acquisition Potential: Nexstar Broadcast Group has successfully improved profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5%, with potential earnings growth from the pending Tegna acquisition.
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- Investor Focus: Trip.com Group and Williams-Sonoma also earned A ratings, reflecting analysts' optimistic outlook on their future performance, which may drive their stock prices up post-earnings release.
- Consumer Sector Outlook: Amer Sports and Five Below received A ratings, highlighting the potential of the consumer sector in the economic recovery, prompting investors to monitor these companies' future performance.
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- Portfolio Management: With Todd Combs' departure, Ted Wechsler is set to manage approximately $300 billion in equity investments, likely continuing Buffett's value-investing philosophy to maintain investment stability.
- Cash Reserve Advantage: Berkshire's cash and short-term Treasury holdings total around $377.4 billion, exceeding its total public stock investments, providing robust financial support for future market opportunities.
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- Portfolio Management: Ted Wechsler is expected to take sole responsibility for managing Berkshire's $300 billion equity portfolio, and despite the challenges of deploying such large sums, he will continue to apply Buffett's value-investing philosophy.
- Cash Reserve Advantage: As of the third quarter, Berkshire's cash and short-term Treasury reserves stood at approximately $377.4 billion, exceeding its total stock investments, providing a robust buffer for future market fluctuations.
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Dillard's Q4 Earnings Beat Expectations Despite Revenue Decline
- Earnings Beat: Dillard's reported a Q4 GAAP EPS of $13.05, exceeding expectations by $1.56, indicating strong profitability despite challenges in the retail environment.
- Revenue Decline: The revenue for Q4 was $1.99 billion, down 2.9% year-over-year and missing estimates, reflecting the difficulties faced in the current retail landscape, particularly due to adverse weather conditions.
- Retail Sales Figures: Total retail sales for the 13 weeks ended January 31, 2026, were $1.916 billion, a 1% decrease from $1.943 billion in the same period last year, highlighting increasing market competition and sluggish consumer spending.
- Store Disruptions: The company noted that sales in over a third of its stores were disrupted by a winter storm event during the third weekend of January 2026, which likely had a negative impact on overall performance.
See More
Dillard's Stock Surges Over 1200%, Significant Dividend Growth
- Dillard's Stock Performance: Between December 2020 and December 2025, Dillard's shares surged over 1200%, outperforming the S&P 500, Nvidia, and Bitcoin, showcasing its strong post-pandemic recovery and market competitiveness.
- Dividend Policy Advantage: With a 15-year track record of dividend growth averaging 12.9% annually over the past five years, combined with a forward yield of 4.8%, Dillard's is expected to continue delivering solid capital returns in the future.
- Nexstar's Profitability: As the largest owner of broadcast television stations in the U.S., Nexstar has successfully enhanced profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5% and a payout ratio of only 45%, providing ample cash flow for future acquisitions and debt repayment.
- Target's Turnaround Potential: Target's stock has rallied over the past year, with a forward yield of 4.1% and a payout ratio nearing 60%, while its 57 years of consecutive dividend growth, coupled with pressure from activist hedge funds, may further enhance management's turnaround efforts, positively impacting share price and dividend growth prospects.
See More
Dillard's Stock Surges Over 1200% in Five Years, Driven by Dividends and Buybacks
- Outstanding Stock Performance: Dillard's stock has surged over 1200% in the past five years, significantly outperforming the S&P 500, Nvidia, and Bitcoin, reflecting strong market performance and investor confidence.
- Sustained Dividend Growth: With a 15-year track record of dividend growth averaging 12.9% annually over the last five years, Dillard's is expected to maintain a forward yield of 4.8%, enhancing investor return expectations.
- Nexstar Acquisition Potential: Nexstar Broadcast Group has successfully improved profitability through aggressive cost-cutting, currently boasting a forward dividend yield of 3.5%, with potential earnings growth from the pending Tegna acquisition.
- Target Shareholder Activism: Target, a Dividend King with 57 years of consecutive dividend growth and a forward yield of 4.1%, may see accelerated transformation efforts due to pressure from activist hedge fund Toms Capital, potentially boosting share price and dividend growth.
See More
Analysts Upgrade Earnings Outlook: 10 Consumer Giants Rated A+
- Earnings Upgrades: As earnings season approaches, analysts have positively revised earnings expectations for consumer giants like Ralph Lauren, Ross Stores, and Sony Group, all receiving A+ ratings, indicating growing market confidence.
- Increased Market Confidence: Dillard’s, Carnival, and Somnigroup International also received A ratings, suggesting these companies demonstrate strong profitability in the current economic environment, potentially attracting more investor interest.
- Investor Focus: Trip.com Group and Williams-Sonoma also earned A ratings, reflecting analysts' optimistic outlook on their future performance, which may drive their stock prices up post-earnings release.
- Consumer Sector Outlook: Amer Sports and Five Below received A ratings, highlighting the potential of the consumer sector in the economic recovery, prompting investors to monitor these companies' future performance.
See More
Buffett Retires as CEO of Berkshire Hathaway; Abel Takes Over Leadership
- Leadership Transition: Warren Buffett officially retired in 2026, with Greg Abel taking over as CEO, which is expected to influence the strategic direction and operational integration of Berkshire's diverse businesses.
- Portfolio Management: With Todd Combs' departure, Ted Wechsler is set to manage approximately $300 billion in equity investments, likely continuing Buffett's value-investing philosophy to maintain investment stability.
- Cash Reserve Advantage: Berkshire's cash and short-term Treasury holdings total around $377.4 billion, exceeding its total public stock investments, providing robust financial support for future market opportunities.
- Investment Strategy Continuation: Wechsler's successful track record at his previous hedge fund will aid his investment decisions at Berkshire, and despite the challenges of managing large sums, he is still expected to achieve positive investment returns.
See More
Buffett Steps Down, Ted Wechsler Takes Over $300 Billion Portfolio at Berkshire Hathaway
- Leadership Transition: Warren Buffett officially stepped down as CEO of Berkshire Hathaway in 2026, with Greg Abel succeeding him and focusing on the company's diverse operations, marking a significant shift in governance structure.
- Portfolio Management: Ted Wechsler is expected to take sole responsibility for managing Berkshire's $300 billion equity portfolio, and despite the challenges of deploying such large sums, he will continue to apply Buffett's value-investing philosophy.
- Cash Reserve Advantage: As of the third quarter, Berkshire's cash and short-term Treasury reserves stood at approximately $377.4 billion, exceeding its total stock investments, providing a robust buffer for future market fluctuations.
- Market Concentration: Berkshire's portfolio remains highly concentrated, with the top five holdings (Apple, American Express, Bank of America, Coca-Cola, and Chevron) accounting for 70% of the total investments, reflecting the risk and reward characteristics of its investment strategy.
See More
