Dillard’s, Inc. jumped in premarket trading after delivering stronger-than-expected third-quarter results and solid retail momentum. The department store chain posted higher profit, better merchandise margins, and healthier balance sheet metrics while outlining a disciplined spending outlook for the coming year.

The company reported third-quarter earnings per share of $8.31, beating the analyst consensus estimate $5.79.

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Metrics

Quarterly sales of $1.469 billion outpaced the Street view of $1.438 billion.

Total retail sales and comparable store sales each increased 3%.

Retail gross margin was 45.3% of sales, up from 44.5%.

Operating expenses totaled $440.4 million, or 30.0% of sales. This compares to $418.9 million of operating expenses, or 29.4% of sales, previously.

Sales in ladies’ accessories and lingerie, juniors’ and children’s apparel, and ladies’ apparel rose significantly year over year.

Sales grew moderately in shoes and inched up in home and furniture, men’s apparel and accessories, and cosmetics. Moderate growth came from shoes, while home and furniture, men’s apparel and accessories, and cosmetics posted slight gains.

Inventory increased 2% at November 1 year over year.

Total shares outstanding (Class A and Class B Common Stock) at November 1, 2025 and November 2, 2024 were 15.6 million and 15.9 million, respectively.

Dillard’s ended the quarter with cash and equivalents worth $1.149 billion.

Merchandise inventories increased to $1.718 billion from $1.682 billion a year ago.

Long-term debt at the end of the quarter was $225.7 million, lower than $321.6 million.

Outlook

The company issued 2025 estimates for key financial items for the year ending Jan. 31, 2026.

Depreciation and amortization are projected at $180 million, slightly above 2024’s $178 million.

Rental expense is expected to be $20 million, compared with $21 million in the prior year.

Net interest and debt income/expense is forecast at a $7 million net income benefit versus $14 million in 2024.

Capital expenditures are projected at $100 million, down from actual spending of $105 million last year.

Price Action: DDS shares are trading higher by 9.69% to $664.70 premarket at last check on Thursday.

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