Dillard’s Inc. reported a second-quarter profit that exceeded Wall Street expectations, driven by tariff refunds despite weaker-than-anticipated sales growth. The department store operator posted adjusted earnings of $5.12 per share for the three months ended July 27, topping the $4.95 per share estimate from Refinitiv. Revenue declined 1.2% year-over-year to $1.85 billion, missing the $1.87 billion consensus forecast.
The company attributed the earnings beat to $24 million in tariff refunds, which helped offset a 3% drop in comparable-store sales. Gross margin expanded to 38.7% from 37.9% in the same period last year, supported by the refunds and inventory management. Operating income rose 5% to $198 million, though total sales fell short of analyst projections.
Dillard’s maintained its full-year outlook, reaffirming adjusted earnings guidance of $20 to $22 per share. The retailer also announced a quarterly dividend of $0.25 per share, payable on August 26 to shareholders of record as of August 19. The company’s shares were little changed in premarket trading following the results.
Management highlighted challenges in apparel and home goods categories, which weighed on comparable sales. Inventory levels were reduced by 8% year-over-year, reflecting efforts to align supply with demand amid macroeconomic uncertainty. The company’s performance contrasts with broader retail trends, where some competitors have reported stronger sales growth driven by back-to-school shopping.
