Dillard's Q2 revenue slightly misses estimates
Dillard's Q2 revenue slightly misses estimates
Overview
U.S. department store's Q2 revenue slightly missed analyst expectations, adjusted EPS beat consensus
Retail gross margin rose to 40.9%, boosted by $37.2 mln in tariff rebates
Operating expenses increased due to higher payroll and payroll-related expenses
Outlook
Dillard's estimates 2026 depreciation and amortization at $175 mln
Company expects 2026 capital expenditures of $120 mln
Dillard's does not expect further significant IEEPA tariff refunds
Result Drivers
TARIFF REFUNDS - Retail gross margin benefited from $37.2 mln in IEEPA tariff refunds, per company
CATEGORY PERFORMANCE - Sales increased significantly in ladies’ accessories and lingerie, moderately in home and furniture, slightly in shoes, men’s apparel and accessories and cosmetics; sales decreased moderately in juniors’ and children’s apparel and ladies’ apparel
HIGHER PAYROLL COSTS - Operating expenses rose primarily due to higher payroll and payroll-related expenses
Company press release: ID:nGNX6l1mgR
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Slight Miss* | $1.51 bln | $1.52 bln (3 Analysts) |
Q2 Net Income | Beat | $97.70 mln | $64.71 mln (2 Analysts) |
Q2 Retail Gross Margin |
| 40.90% |
|
Q2 Basic EPS | Beat | $6.25 | $4.29 (3 Analysts) |
Q2 Operating Expenses |
| $443.60 mln |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the department stores peer group is "buy."
Wall Street's median 12-month price target for Dillard's Inc is $557.50, about 12.3% below its August 12 closing price of $636.02
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 17 three months ago
Reuters Recommended Reads
Aug 13 - Wolverine World Wide Q2 profit beats estimates, tariffs weigh on margins
Aug 12 - Crown Crafts Q1 returns to profit on tariff refunds
Aug 13 - Tapestry forecasts strong annual profit as Coach draws young shoppers
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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