# DILLARD'S, INC. (DDS)

Informational only - not investment advice.

CIK: 0000028917
SIC: 5311 Retail-Department Stores
SIC breadcrumb: [Retail Trade](/division/G/) > [General Merchandise Stores](/major-group/53/) > [SIC 5311 Retail-Department Stores](/industry/5311/)
Latest 10-K filed: 2026-03-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=28917
Filing source: https://www.sec.gov/Archives/edgar/data/28917/000002891726000006/dds-20260131x10k.htm

## At a glance

FY2026 · period end 2026-01-31 · filed 2026-03-27 · accession 0000028917-26-000006 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000028917.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 6,563,336,000 USD | 2026 | verified |
| Net income | 570,187,000 USD | 2026 | verified |
| Assets | 3,505,023,000 USD | 2026 | verified |
| Free cash flow | 623,626,000 USD | 2026 | computed |
| Net margin | 8.69% | 2026 | computed |
| Revenue YoY | -0.41% | 2026 | computed |
| ROE | 32.05% | 2026 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | DDS | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 8.7% | 3.5% | 92 | 13 |
| Revenue growth | -0.4% | 5.2% | 25 | 13 |
| FCF margin | 9.5% | 4.7% | 100 | 13 |
| ROE | 32.1% | 22.0% | 83 | 13 |
| ROA | 16.3% | 7.3% | 100 | 13 |
| Liabilities / equity | 0.97 | 2.30 | 17 | 13 |
| Current ratio | 2.65 | 1.23 | 100 | 13 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 53 General Merchandise Stores, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 6563336000 | USD | 2026 | 2026-03-27 |
| Net income | 570187000 | USD | 2026 | 2026-03-27 |
| Assets | 3505023000 | USD | 2026 | 2026-03-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000028917.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2011 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue |  | 6,418,008,000 | 6,422,676,000 | 6,503,349,000 | 6,343,211,000 | 4,433,185,000 | 6,624,267,000 | 6,996,215,000 | 6,874,420,000 | 6,590,231,000 | 6,563,336,000 |
| Net income |  | 169,220,000 | 221,324,000 | 170,263,000 | 111,081,000 | -71,654,000 | 862,473,000 | 891,637,000 | 738,847,000 | 593,476,000 | 570,187,000 |
| Gross profit |  | 2,090,726,000 | 2,061,759,000 | 2,064,589,000 | 1,967,542,000 | 1,231,832,000 | 2,745,328,000 | 2,887,483,000 | 2,720,945,000 | 2,563,087,000 | 2,556,761,000 |
| Diluted EPS |  | 4.93 | 7.51 | 6.23 | 4.38 | -3.16 | 41.88 | 50.81 | 44.73 | 36.82 | 36.42 |
| Operating cash flow | 512,922,000 |  | 274,285,000 | 367,288,000 | 365,074,000 | 252,946,000 | 1,280,020,000 | 948,391,000 | 883,590,000 | 714,127,000 | 717,008,000 |
| Capital expenditures |  | 104,824,000 | 130,464,000 | 137,064,000 | 103,383,000 | 60,453,000 | 104,360,000 | 120,105,000 | 132,944,000 | 104,552,000 | 93,382,000 |
| Dividends paid |  | 9,787,000 | 9,424,000 | 11,108,000 | 11,520,000 | 13,976,000 | 305,240,000 | 271,313,000 | 338,629,000 | 413,795,000 | 484,876,000 |
| Share buybacks |  | 240,171,000 | 223,013,000 | 129,884,000 | 130,928,000 | 102,879,000 | 544,868,000 | 452,853,000 | 281,411,000 | 121,034,000 | 107,756,000 |
| Assets |  | 3,898,450,000 | 3,682,703,000 | 3,431,369,000 | 3,430,257,000 | 3,092,515,000 | 3,245,557,000 | 3,329,150,000 | 3,448,906,000 | 3,531,054,000 | 3,505,023,000 |
| Stockholders' equity |  | 1,717,417,000 | 1,708,155,000 | 1,678,381,000 | 1,623,259,000 | 1,441,008,000 | 1,451,218,000 | 1,598,638,000 | 1,697,068,000 | 1,796,160,000 | 1,778,970,000 |
| Cash and cash equivalents |  | 346,985,000 | 187,028,000 | 123,509,000 | 277,077,000 | 360,339,000 | 716,759,000 | 650,336,000 | 808,287,000 | 717,854,000 | 861,460,000 |
| Free cash flow |  |  | 143,821,000 | 230,224,000 | 261,691,000 | 192,493,000 | 1,175,660,000 | 828,286,000 | 750,646,000 | 609,575,000 | 623,626,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2011 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin |  | 2.64% | 3.45% | 2.62% | 1.75% | -1.62% | 13.02% | 12.74% | 10.75% | 9.01% | 8.69% |
| Return on equity |  | 9.85% | 12.96% | 10.14% | 6.84% | -4.97% | 59.43% | 55.77% | 43.54% | 33.04% | 32.05% |
| Return on assets |  | 4.34% | 6.01% | 4.96% | 3.24% | -2.32% | 26.57% | 26.78% | 21.42% | 16.81% | 16.27% |
| Liabilities / equity |  | 1.27 | 1.16 | 1.04 | 1.11 | 1.15 | 1.24 | 1.08 | 1.03 | 0.97 | 0.97 |
| Current ratio |  | 1.88 | 1.66 | 1.90 | 1.99 | 2.15 | 1.98 | 2.41 | 2.67 | 2.84 | 2.65 |

## As-reported value updates

No tracked differences above grepcent's stated thresholds and capped precision rule were found between the earliest XBRL-filed value and the value currently on file for the standardized annual metrics grepcent tracks.


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-05. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000028917.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q2 | 2022-07-30 |  |  | 9.30 | reported discrete quarter |
| 2022-Q3 | 2022-10-29 |  |  | 10.96 | reported discrete quarter |
| 2023-Q1 | 2023-04-29 |  |  | 11.85 | reported discrete quarter |
| 2023-Q2 | 2023-07-29 | 1,597,418,000 | 131,511,000 | 7.98 | reported discrete quarter |
| 2023-Q3 | 2023-10-28 | 1,504,234,000 | 155,339,000 | 9.49 | reported discrete quarter |
| 2023-Q4 | 2024-02-03 | 2,158,861,000 | 250,502,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-05-04 | 1,572,809,000 | 180,038,000 | 11.09 | reported discrete quarter |
| 2024-Q2 | 2024-08-03 | 1,514,646,000 | 74,483,000 | 4.59 | reported discrete quarter |
| 2024-Q3 | 2024-11-02 | 1,451,160,000 | 124,596,000 | 7.73 | reported discrete quarter |
| 2024-Q4 | 2025-02-01 | 2,051,616,000 | 214,359,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-05-03 | 1,546,971,000 | 163,817,000 | 10.39 | reported discrete quarter |
| 2025-Q2 | 2025-08-02 | 1,536,003,000 | 72,835,000 | 4.66 | reported discrete quarter |
| 2025-Q3 | 2025-11-01 | 1,490,973,000 | 129,810,000 | 8.31 | reported discrete quarter |
| 2025-Q4 | 2026-01-31 | 1,989,389,000 | 203,725,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-05-02 | 1,588,621,000 | 250,553,000 | 16.04 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from DDS's latest 10-K: [/company/DDS/business/](/company/DDS/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from DDS's latest 10-K: [/company/DDS/risk-factors/](/company/DDS/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/28917/000002891726000019/dds-20260502x10q.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-06-05
Report date: 2026-05-02

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the condensed consolidated financial statements and the footnotes thereto included elsewhere in this report, as well as the financial and other information included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2026.

EXECUTIVE OVERVIEW

The Company reported a good start to fiscal 2026, marked by a 3% comparable store sales growth for the first quarter supported by a strong, increased retail gross margin of 45.8% of sales.

For the three months ended May 2, 2026, the Company reported net income of $250.6 million ($16.04 per share) compared to net income of $163.8 million ($10.39 per share) for the three months ended May 3, 2025. Included in net income for the 13 weeks ended May 2, 2026 is a pre-tax gain on litigation settlement, net of legal fees, of $104.1 million ($79.6 million after tax or $5.10 per share) related to the Company’s favorable settlement of a long-standing lawsuit involving credit card interchange fees.

Compared to the prior year first quarter, both total retail sales (which exclude construction sales) and comparable store sales increased 3%. Retail gross margin increased to 45.8% of sales from 45.5% reported in the prior year first quarter. Ending inventory increased 3% at May 2, 2026 compared to May 3, 2025.

Selling, general and administrative expenses for the three months ended May 2, 2026 were $444.0 million (28.3% of sales) compared to $421.7 million (27.6% of sales) for the prior year first quarter. The increase of $22.3 million was largely due to higher payroll and payroll-related expenses.

Net cash provided by operating activities was $364.0 million for the three months ended May 2, 2026 compared to $232.6 million for the prior year first quarter.

As of May 2, 2026, the Company had working capital of $1.760 billion (including cash and cash equivalents of $1.158 billion and short-term investments of $259.7 million) and $521.7 million of total debt outstanding, including one scheduled debt maturity of $96.0 million due July 2026, $225.7 million of long-term debt and $200.0 million of subordinated debentures.

The Company operated 272 Dillard’s stores, including 28 clearance centers, and an internet store as of May 2, 2026.

​

16

Table of Contents

Key Performance Indicators

We use a number of key indicators of financial condition and operating performance to evaluate our business, including the following:

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","Three Months Ended","\u200b"],["\u200b","\u200b","May 2,","\u200b \u200b \u200b","May 3,","\u200b \u200b \u200b"],["\u200b","\u200b","2026","\u200b","2025","\u200b"],["Net sales (in millions)","\u200b","$","1,568.4","\u200b","$","1,528.9","\u200b"],["Retail stores sales trend","\u200b","","3","%","","(2)","%"],["Comparable retail stores sales trend","\u200b","","3","%","","(1)","%"],["Gross margin (in millions)","\u200b","$","698.1","\u200b","$","671.2","\u200b"],["Gross margin as a percentage of net sales","\u200b","","44.5","%","","43.9","%"],["Retail gross margin as a percentage of retail net sales","\u200b","","45.8","%","","45.5","%"],["Selling, general and administrative expenses as a percentage of net sales","\u200b","","28.3","%","","27.6","%"],["Cash flow provided by operations (in millions)","\u200b","$","364.0","\u200b","$","232.6","\u200b"],["Total retail store count at end of period","\u200b","","272","\u200b","","272","\u200b"],["Retail sales per square foot","\u200b","$","33","\u200b","$","32","\u200b"],["Retail store inventory trend","\u200b","","3","%","","6","%"],["Annualized retail merchandise inventory turnover","\u200b","","2.4","\u200b","","2.3","\u200b"]]
[[/GREPCENT_TABLE]]

General

Net sales. Net sales includes merchandise sales of comparable and non-comparable stores and revenue recognized on contracts of CDI Contractors, LLC (“CDI”), the Company’s general contracting construction company. Comparable store sales includes sales for those stores which were in operation for a full period in both the most recently completed quarter and the corresponding quarter for the prior fiscal year, including our internet store. Comparable store sales excludes changes in the allowance for sales returns. Non-comparable store sales includes: sales in the current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores; sales from new stores opened during the current fiscal year; sales in the previous fiscal year for stores closed during the current or previous fiscal year that are no longer considered comparable stores; sales in clearance centers; and changes in the allowance for sales returns.

Sales occur as a result of interaction with customers across multiple points of contact, creating an interdependence between in-store and online sales. Online orders are fulfilled from both fulfillment centers and retail stores. Additionally, online customers have the ability to buy online and pick up in-store. Retail in-store customers have the ability to purchase items that may be ordered and fulfilled from either a fulfillment center or another retail store location. Online customers may return orders via mail, or customers may return orders placed online to retail store locations. Customers who earn reward points under the private label credit card program may earn and redeem rewards through in-store or online purchases.

Service charges and other income. Service charges and other income includes income generated through the Company’s long-term private label credit card marketing and servicing alliance with Citibank, N.A. (“Citibank Alliance”). Other income includes rental income, shipping and handling fees and gift card breakage.

Cost of sales. Cost of sales includes the cost of merchandise sold (net of purchase discounts, non-specific margin maintenance allowances and merchandise margin maintenance allowances), bankcard fees, freight to the distribution centers, employee and promotional discounts, shipping to customers and direct payroll for salon personnel. Cost of sales also includes CDI contract costs, which comprise all direct material and labor costs, subcontract costs and those indirect costs related to contract performance, such as indirect labor, employee benefits and insurance program costs.

Selling, general and administrative expenses. Selling, general and administrative expenses include buying, occupancy, selling, distribution, warehousing, store and corporate expenses (including payroll and employee benefits), insurance, employment taxes, advertising, management information systems, legal and other corporate level expenses. Buying expenses consist of payroll, employee benefits and travel for design, buying and merchandising personnel.

17

Table of Contents

Depreciation and amortization. Depreciation and amortization expenses include depreciation and amortization on property and equipment.

Rentals. Rentals includes expenses for store leases, including contingent rent, data processing and other equipment rentals and office space leases.

Interest and debt (income) expense, net. Interest and debt (income) expense includes interest, net of interest income from demand deposits and short-term investments and capitalized interest, relating to the Company’s unsecured notes, subordinated debentures and commitment fees and borrowings, if any, under the Company’s credit agreement. Interest and debt expense also includes the amortization of financing costs and interest on finance lease obligations, if any.

Other expense. Other expense includes the interest cost and net actuarial loss components of net periodic benefit costs related to the Company’s unfunded, nonqualified defined benefit plan and charges related to the write off of certain deferred financing fees in connection with the amendment and extension of the Company's secured revolving credit facility, if any.

Gain on litigation settlement. Gain on litigation settlement includes the proceeds received, net of legal expenses, from the settlement of credit card interchange fee litigation.

Gain on disposal of assets. Gain on disposal of assets includes the net gain or loss on the sale or disposal of property and equipment, as well as gains from insurance proceeds in excess of the cost basis of insured assets, if any.

Seasonality

Our business, like many other retailers, is subject to seasonal influences, with a significant portion of sales and income typically realized during the last quarter of our fiscal year due to the holiday season. Because of the seasonality of our business, results from any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year.

18

Table of Contents

RESULTS OF OPERATIONS

The following table sets forth the results of operations as a percentage of net sales for the periods indicated (percentages may not foot due to rounding):

​

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b \u200b \u200b","Three Months Ended","\u200b","\u200b"],["\u200b","\u200b","May 2,","\u200b \u200b \u200b","May 3,","\u200b \u200b \u200b","\u200b"],["\u200b","\u200b","2026","\u200b","2025","\u200b","\u200b \u200b \u200b"],["Net sales","","100.0","%","100.0","%","\u200b"],["Service charges and other income","","1.3","","1.2","","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","","101.3","","101.2","","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Cost of sales","","55.5","","56.1","","\u200b"],["Selling, general and administrative expenses","","28.3","","27.6","","\u200b"],["Depreciation and amortization","","2.8","","2.9","","\u200b"],["Rentals","","0.2","","0.3","","\u200b"],["Interest and debt (income) expense, net","","0.0","","(0.1)","","\u200b"],["Other expense","","0.3","","0.4","","\u200b"],["Gain on litigation settlement","\u200b","(6.6)","\u200b","0.0","\u200b","\u200b"],["Gain on disposal of assets","","0.0","","0.0","","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Income before income taxes and equity in earnings of joint ventures","\u200b","20.9","\u200b","14.0","\u200b","\u200b"],["Income taxes","","4.9","","3.3","","\u200b"],["Equity in earnings of joint ventures","\u200b","0.0","","0.0","\u200b","\u200b"],["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["Net income","","16.0","%","10.7","%","\u200b"]]
[[/GREPCENT_TABLE]]

​

Net Sales

[[GREPCENT_TABLE]]
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[[/GREPCENT_TABLE]]

19

Table of Contents

The percent change by segment and product category in the Company’s sales for the three months ended May 2, 2026 compared to the three months ended May 3, 2025 as well as the sales percentage by segment and product category to total net sales for the three months ended May 2, 2026 are as follows:

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/28917/000002891726000006/dds-20260131x10k.htm
Complete FY 2026 MD&A: /company/DDS/mda/fy2026/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-03-27
Report date: 2026-01-31

ITEM 7.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

At January 31, 2026, Dillard’s, Inc. operates 271 retail department stores spanning 30 states and an Internet store at dillards.com. 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, which is a reportable segment separate from our retail operations.

In accordance with the National Retail Federation fiscal reporting calendar and our bylaws, the fiscal 2025 reporting period presented and discussed below ended January 31, 2026 and contained 52 weeks. The fiscal 2024 reporting period presented and discussed below ended February 1, 2025 and contained 52 weeks. The fiscal 2023 reporting period presented and discussed below ended February 3, 2024 and contained 53 weeks. For comparability purposes, where noted, some of the information discussed below is based upon comparison of the 52 weeks ended February 1, 2025 to the 52 weeks ended February 3, 2024. Additionally, some of the information discussed below is based upon comparison of the 52 weeks ended January 27, 2024 to the 52 weeks ended January 28, 2023.

A discussion regarding results of operations and analysis of financial condition for the year ended February 1, 2025 as compared to the year ended February 3, 2024 is included in Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended February 1, 2025.

EXECUTIVE OVERVIEW

Fiscal 2025

We achieved a respectable performance for fiscal year 2025, reporting net income of $570.2 million. In a rapidly changing merchandising environment characterized by unpredictable costs, we focused on maintaining gross margin performance. Our retail gross margin stood at 40.8% while sales remained unchanged (as a percentage) compared to fiscal 2024. We kept shareholder return a priority. We paid $484.9 million in dividends, highlighted by the largest special dividend in our history. Additionally, we repurchased $107.8 million of stock. Following these efforts, we held approximately $1.1 billion in cash and cash equivalents and short-term investments at year end and remained in a strong financial position.

Total retail sales for fiscal 2025 and fiscal 2024 were $6.232 billion and $6.219 billion, respectively. Total retail sales were unchanged as a percentage for fiscal 2025 compared to fiscal 2024. Sales in comparable stores for the same period were also unchanged.

​

Consolidated gross margin for both fiscal 2025 and fiscal 2024 was 39.5% of sales. Retail gross margin for fiscal 2025 was 40.8% of sales compared to 41.0% of sales for fiscal 2024. Inventory increased 2% at January 31, 2026 compared to February 1, 2025.

​

Consolidated selling, general and administrative expenses (“operating expenses”) for fiscal 2025 were $1,759.2 million (27.2% of sales) compared to $1,731.2 million (26.7% of sales) for fiscal 2024. The increase in operating expenses is primarily due to increased payroll and payroll-related expenses.

​

We reported net income for fiscal 2025 of $570.2 million, or $36.42 per share, compared to $593.5 million, or $36.82 per share, for fiscal 2024. Included in net income for fiscal 2025 are the following items:

​

[[GREPCENT_TABLE]]
[["","\u25cf","a pretax gain of $20.4 million ($15.7 million after tax or $1.00 per share) primarily related to the sale of five properties"]]
[[/GREPCENT_TABLE]]

​

[[GREPCENT_TABLE]]
[["","\u25cf","federal and state income tax benefits of $35.0 million ($2.24 per share) due to a deduction related to that portion of the special dividend of $30.00 per share that was paid to the Dillard's, Inc. Investment and Employee Stock Ownership Plan during the year"]]
[[/GREPCENT_TABLE]]

20

Table of Contents

Included in net income for fiscal 2024 are federal and state income tax benefits of $30.8 million ($1.91 per share) due to a deduction related to that portion of the special dividend of $25.00 per share that was paid to the Dillard's, Inc. Investment and Employee Stock Ownership Plan during the year.

​

Cash flow from operations was $717.0 million for fiscal 2025 and $714.1 million for fiscal 2024. During fiscal 2025, we returned a record $592.6 million of cash to stockholders in the form of dividends and share repurchases. At January 31, 2026, authorization of $165.2 million remained under the share repurchase program.

​

At January 31, 2026, we had working capital of $1,484.5 million (including cash and cash equivalents and short-term investments totaling $1,073.0 million) and total debt outstanding of $521.7 million excluding operating lease liabilities.

​

Key Performance Indicators

We use a number of key indicators of financial condition and operating performance to evaluate our business, including the following:

[[GREPCENT_TABLE]]
[["\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b","\u200b"],["\u200b","\u200b","Fiscal 2025","\u200b \u200b \u200b","\u200b","Fiscal 2024","\u200b \u200b \u200b","Fiscal 2023","\u200b"],["Net sales (in millions)","\u200b","$","6,473.6","\u200b","\u200b","$","6,482.6","\u200b","$","6,752.1","\u200b","\u200b"],["Gross margin (in millions)","\u200b","$","2,556.8","\u200b","\u200b","$","2,563.1","\u200b","$","2,720.9","\u200b","\u200b"],["Gross margin as a percentage of net sales","\u200b","","39.5","%","\u200b","","39.5","%","","40.3","%","\u200b"],["Retail gross margin as a percentage of retail net sales","\u200b","","40.8","%","\u200b","","41.0","%","","41.8","%","\u200b"],["Selling, general and administrative expenses as a percentage of net sales","\u200b","","27.2","%","\u200b","","26.7","%","","25.4","%","\u200b"],["Cash flow provided by operations (in millions)","\u200b","$","717.0","\u200b","\u200b","$","714.1","\u200b","$","883.6","\u200b","\u200b"],["Total retail store count at end of period","\u200b","","271","\u200b","\u200b","","272","\u200b","","273","\u200b","\u200b"],["Retail sales per square foot","\u200b","$","138","\u200b","\u200b","$","137","\u200b","$","143","\u200b","\u200b"],["Retail stores sales trend","\u200b","","\u2014","%","\u200b","","(2)","%","*","(5)","%","**"],["Comparable retail store sales trend","\u200b","","\u2014","%","\u200b","","(3)","%","*","(4)","%","**"],["Retail store inventory trend","\u200b","","2","%","\u200b","","7","%","","(2)","%","\u200b"],["Retail merchandise inventory turnover","\u200b","","2.6","\u200b","\u200b","","2.6","\u200b","","2.8","\u200b","\u200b"]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["*","Based upon the 52 weeks ended February 1, 2025 and the 52 weeks ended February 3, 2024."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["**","Based upon the 52 weeks ended January 27, 2024 and the 52 weeks ended January 28, 2023."]]
[[/GREPCENT_TABLE]]

Trends and Uncertainties

Fluctuations in the following key trends and uncertainties may have a material effect on our operating results.

[[GREPCENT_TABLE]]
[["","\u25cf","Cash flow\u2014Cash from operating activities is a primary source of our liquidity that is adversely affected when the retail industry faces economic challenges. Furthermore, operating cash flow can be negatively affected by competitive factors."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Pricing\u2014If our customers do not purchase our merchandise offerings in sufficient quantities, we respond by taking markdowns. If we have to reduce our retail selling prices, the gross margin on our consolidated statement of operations will correspondingly decrease, thus reducing our net income and cash flow."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Success of brand\u2014The success of our exclusive brand merchandise as well as merchandise we source from national vendors is dependent upon customer fashion preferences and how well we can predict and anticipate trends."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Sourcing\u2014Our store merchandise selection is dependent upon our ability to acquire appealing products from a number of sources. Our ability to attract and retain compelling vendors as well as in-house design talent, the adequacy and stable availability of materials and production facilities from which we source our"]]
[[/GREPCENT_TABLE]]

21

Table of Contents

[[GREPCENT_TABLE]]
[["","","merchandise and the speed at which we can respond to customer trends and preferences all have a significant impact on our merchandise mix and, thus, our ability to sell merchandise at profitable prices."]]
[[/GREPCENT_TABLE]]

[[GREPCENT_TABLE]]
[["","\u25cf","Store growth\u2014Our ability to open new stores is dependent upon a number of factors, such as the identification of suitable markets and locations and the availability of shopping developments, especially in a weak economic environment. Store growth can be further hindered by mall attrition and subsequent closure of underperforming properties."]]
[[/GREPCENT_TABLE]]

At present, a number of economic and geopolitical factors are affecting the U.S. and world economies (including countries from which we source some of our merchandise): war and other armed conflicts (including the ongoing conflict with Iran and/or Iranian sponsored actors, other conflicts in the Middle East and the ongoing conflict in Ukraine and the resulting sanctions imposed on Russia by the U.S. and other countries), fluctuating energy prices, trade restrictions (including tariffs), inflation and the continuing impact of elevated United States wages. The extent to which our business will be affected by these factors depends on our customer’s continuing ability and willingness to accept price increases. Accordingly, the related financial impact to fiscal 2026 from these factors cannot be reasonably estimated at this time.

Seasonality and Inflation

Our business, like many other retailers, is subject to seasonal influences, with a significant portion of sales and income typically realized during the last quarter of our fiscal year due to the holiday season. Because of the seasonality of our business, results from any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year.

The Company was affected by inflation during fiscal 2025 and 2024. Our business will likely be affected by inflation in fiscal 2026, the extent of which depends on our customers’ continuing ability and willingness to accept price increases.

General

Net sales. Net sales includes merchandise sales of comparable and non-comparable stores and revenue recognized on contracts of CDI, the Company’s general contracting construction company. Comparable store sales includes sales for those stores which were in operation for a full period in both the most recently completed quarter and the corresponding quarter for the prior fiscal year, including our internet store. Comparable store sales excludes changes in the allowance for sales returns. Non-comparable store sales includes: sales in the current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores; sales from new stores opened during the current fiscal year; sales in the previous fiscal year for stores closed during the current or previous fiscal year that are no longer considered comparable stores; sales in clearance centers; and changes in the allowance for sales returns.

Sales occur as a result of interaction with customers across multiple points of contact, creating an interdependence between in-store and online sales. Online orders are fulfilled from both fulfillment centers and retail stores. Additionally, online customers have the ability to buy online and pick up in-store. Retail in-store customers have the ability to purchase items that may be ordered and fulfilled from either a fulfillme

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2026 MD&A: /company/DDS/mda/fy2026/
All MD&A years: /company/DDS/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2025 MD&A](/company/DDS/mda/fy2025/): filed 2025-03-28; accession 0000028917-25-000004 (https://www.sec.gov/Archives/edgar/data/28917/000002891725000004/dds-20250201x10k.htm)
- [FY 2024 MD&A](/company/DDS/mda/fy2024/): filed 2024-03-29; accession 0000028917-24-000011 (https://www.sec.gov/Archives/edgar/data/28917/000002891724000011/dds-20240203x10k.htm)
- [FY 2023 MD&A](/company/DDS/mda/fy2023/): filed 2023-03-27; accession 0000028917-23-000007 (https://www.sec.gov/Archives/edgar/data/28917/000002891723000007/dds-20230128x10k.htm)
- [FY 2022 MD&A](/company/DDS/mda/fy2022/): filed 2022-03-29; accession 0000028917-22-000009 (https://www.sec.gov/Archives/edgar/data/28917/000002891722000009/dds-20220129.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5311 Retail-Department Stores) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [PCEPI](/indicator/PCEPI/): Personal Consumption Expenditures: Chain-type Price Index
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/DDS.md · JSON record: /company/DDS.json · verified financials: /company/DDS/financials.json / /company/DDS/financials.csv · machine TOC for the whole site: /llms.txt