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Dillard’s reported Q2 FY2027 revenue of $1.5 billion, below the consensus, with the difference reported as −0.76%. Revenue was also $1.5 billion a year earlier. Diluted earnings per share rose to $6.25 from $4.66.
The company’s filing attributes the increase in net income primarily to higher retail gross margin, which benefited from tariff refunds, and growth in retail sales. It reports that comparable-store sales rose, while construction sales declined because of lower activity. Sales of ladies’ accessories and lingerie increased significantly, while ladies’ apparel sales decreased moderately.
Dillard’s reported gross margin of 40.6%, compared with 37.5% a year earlier, and operating margin of 8.45%, compared with 6.08%. Its filing says selling, general and administrative expenses increased primarily because of higher payroll and related costs. Free cash flow was −$59.3 million, compared with $65.9 million a year earlier.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $1.5 billion | $1.5 billion | −0.36% |
| Diluted EPS | $6.25 | $4.66 | 34.1% |
| Gross margin | 40.6% | 37.5% | 3.0 percentage points |
| Operating margin | 8.45% | 6.08% | 2.4 percentage points |
| Free cash flow | −$59.3 million | $65.9 million | −190.0% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Revenue | $1.5 billion | $1.5 billion | Missed by 0.76% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
In its filing, Dillard’s described the customer as somewhat resilient and reported an increase in comparable-store sales. The filing says the number of sales transactions decreased, while average spending per transaction increased.
Dillard’s said tariff refunds benefited retail gross margin. Excluding those refunds, the filing reports that margins increased moderately in ladies’ apparel but decreased moderately in ladies’ accessories and lingerie. It also says inventory increased from a year earlier.
Guidance
Dillard’s expects to satisfy the remaining performance obligations on its executed construction contracts, according to its filing. The filing identifies those obligations as part of the company’s construction segment.