Dillard's Inc. reported second-quarter adjusted earnings per share of $11.86, exceeding Wall Street estimates by $1.93. Revenue, however, declined to $1.85 billion, missing the $1.91 billion consensus forecast compiled by Refinitiv.
The Little Rock, Arkansas-based department store operator said comparable-store sales fell 2% year-over-year, reflecting softer consumer demand in discretionary categories. Gross margin expanded to 42.1% from 41.5% in the same period last year, aided by tighter inventory controls and selective markdowns.
Chief Executive William Dillard II noted that while back-to-school demand was "modestly better" than expected, broader retail trends remained pressured by inflation and cautious consumer spending. The company maintained its full-year guidance, reaffirming adjusted EPS of $38 to $42 and revenue of $6.5 billion to $6.7 billion.
Shares were little changed in after-hours trading, suggesting investors had already priced in the mixed results. Analysts at Telsey Advisory Group described the earnings beat as "encouraging" but flagged revenue weakness as a "near-term headwind."
Dillard's operates 262 stores across 29 states, primarily in the southern and western U.S.
