On this page of StockholderLetter.com we present the latest annual shareholder letter from DILLARD'S, INC. — ticker symbol DDS. Reading current and past DDS letters to shareholders can bring important insights into the investment thesis.
ANNUAL REPORT 2025
Dear Shareholder, We reported a respectable year for fiscal 2025. For most of the year, we navigated a rapidly changing merchandising environment with unpredictable costs. We drew upon over eight decades of retail experience and focused on maintaining a consistent, steady gross margin performance. While sales remained unchanged compared to fiscal 2024 (as a percentage), our retail gross margin stood strong at 40.8%. We credit this result to our continued focus on inventory management as well as to the successful efforts of our merchandising teams to meet these challenges. We reported net income of $570 million with earnings per share of $36.42. We generated strong cash flow from operations of $717 million, positioning us nicely to return $593 million to shareholders in dividends and share repurchases. Notably, we paid the largest special dividend in our history of $30 per share. Following these efforts, we ended the year with approximately $1.1 billion in cash and short-term investments headlining a best-in-class balance sheet. Changes to the U.S. retail landscape continue into 2026 with luxury and department store peers executing continued store closures and bankruptcy proceedings to right the ship. We believe our role in the nation s marketplace is to remain the reliable, stable, and, yes, exciting source for fashion in America s hometowns. We continue to see our customers energized by newness, by luxury, by details and color, and by unique choices in style, beauty and home. We share that passion. By partnering with new vendors who share our vision and with engaging style influencers, we are ensuring that our assortments remain as vibrant as the communities we serve. We are grateful to our existing partners who continue to serve alongside us with excellence. We hope our shared experiences in 2025 made us an even better retailer and benefitted you, our shareholders and associates, as well. Our team of over 29,000 associates many of whom are fellow shareholders is the heartbeat of this company. As we head into 2026, we look forward to serving our customers exceptionally, as we have since 1938. Warm regards, William Dillard, II Chairman of the Board & Chief Executive Officer Alex Dillard President
 • shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/7/2023 DDS Stockholder Letter
 • stockholder letter icon 4/5/2024 DDS Stockholder Letter
 • stockholder letter icon 4/4/2025 DDS Stockholder Letter
 • stockholder letter icon More "Department Stores" Category Stockholder Letters
 • Benford's Law Stocks icon DDS Benford's Law Stock Score = 87


DDS Shareholder/Stockholder Letter Transcript:

ANNUAL REPORT 2025

Dear Shareholder,
We reported a respectable year for fiscal 2025. For most of the year, we navigated a rapidly changing
merchandising environment with unpredictable costs. We drew upon over eight decades of retail
experience and focused on maintaining a consistent, steady gross margin performance. While sales
remained unchanged compared to fiscal 2024 (as a percentage), our retail gross margin stood strong
at 40.8%. We credit this result to our continued focus on inventory management as well as to the successful
efforts of our merchandising teams to meet these challenges.
We reported net income of $570 million with earnings per share of $36.42. We generated strong cash flow
from operations of $717 million, positioning us nicely to return $593 million to shareholders in dividends
and share repurchases. Notably, we paid the largest special dividend in our history of $30 per share.
Following these efforts, we ended the year with approximately $1.1 billion in cash and short-term
investments headlining a best-in-class balance sheet.
Changes to the U.S. retail landscape continue into 2026 with luxury and department store peers executing
continued store closures and bankruptcy proceedings to right the ship. We believe our role in the nation   s
marketplace is to remain the reliable, stable, and, yes, exciting source for fashion in America   s hometowns.
We continue to see our customers energized by newness, by luxury, by details and color, and by unique
choices in style, beauty and home. We share that passion. By partnering with new vendors who share our
vision and with engaging style influencers, we are ensuring that our assortments remain as vibrant as the
communities we serve. We are grateful to our existing partners who continue to serve alongside us
with excellence.
We hope our shared experiences in 2025 made us an even better retailer and benefitted you, our
shareholders and associates, as well. Our team of over 29,000 associates     many of whom are fellow
shareholders     is the heartbeat of this company. As we head into 2026, we look forward to serving our
customers exceptionally, as we have since 1938.
Warm regards,
William Dillard, II
Chairman of the Board &
Chief Executive Officer
Alex Dillard
President


shareholder letter icon 4/6/2026 Letter Continued (Full PDF)
 

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