Dillard's (DDS) AI Stock Analysis

• Market Cap: $9.74B
• Dividend Yield: 4.17%
• Average Volume (3M): 136.51K
• Price to Earnings (P/E): 17.2
• Beta (1Y): 1.18
• Revenue Growth: -2.44%
• EPS Growth: -10.74%
• Country: US
• Employees: 28,800
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 4.66
• Shares Outstanding: 11,626,733
• 10 Day Avg. Volume: 118,544
• 30 Day Avg. Volume: 136,513
• PEG Ratio: -0.72
• Price to Book (P/B): 4.20
• Price to Sales (P/S): 1.15
• P/FCF Ratio: 12.38
• Enterprise Value/Market Cap: 0.68
• Enterprise Value/Revenue: 1.01
• Enterprise Value/Gross Profit: 2.57
• Enterprise Value/Ebitda: 7.22
• 1Y Price Target: $439.00
• Price Target Upside: -29.62% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 77 Outperform
• Price Target: $588.00 ▼(-5.73% Downside)

Dillard's strong financial performance, characterized by robust profitability and a solid balance sheet, is the primary driver of its stock score. The technical analysis suggests bullish momentum, although caution is advised due to overbought signals. The attractive valuation, with a low P/E ratio and high dividend yield, further supports the stock's appeal.

Dillard's Business Overview & Revenue Model

Company Description

Dillard's, Inc. operates retail department stores in the southeastern, southwestern, and midwestern areas of the United States. Its stores offer merchandise, including fashion apparel for women, men, and children; and accessories, cosmetics, home furnishings, and other consumer goods. As of January 29, 2022, the company operated 280 Dillard's stores, including 30 clearance centers, and an Internet store at dillards.com. It also engages in the general contracting construction activities. The company was founded in 1938 and is based in Little Rock, Arkansas.

How the Company Makes Money

Dillard's generates revenue primarily through the sale of merchandise in its department stores and online. The company's key revenue streams include women's, men's, and children's apparel, footwear, accessories, and home goods. Additionally, Dillard's earns income from its private label credit card program, which offers financing options to customers while generating interest income. Seasonal sales events, promotions, and clearance sales also contribute to revenue by attracting customers and increasing foot traffic. The company maintains partnerships with various brands and designers, enhancing its product offerings and driving sales. Furthermore, Dillard's leverages its loyalty programs and marketing initiatives to retain customers and encourage repeat purchases.

Dillard's Financial Statement Overview

Summary

Dillard's financial statements reflect strong profitability with a healthy gross profit margin and solid net profit margin. The balance sheet is robust with low leverage and high return on equity, while cash flow generation has improved significantly, enhancing financial flexibility.

Income Statement

Dillard's has shown a strong recovery in its income statement metrics over the years. The TTM data indicates a healthy gross profit margin of 39.37% and a net profit margin of 8.74%, which are competitive within the department store industry. Revenue growth has been volatile, with a significant increase in the TTM period following a decline in the previous year. EBIT and EBITDA margins are solid, reflecting efficient cost management. However, the company needs to maintain consistent revenue growth to sustain profitability.

Balance Sheet

The balance sheet reflects a strong financial position with a low debt-to-equity ratio of 0.22 in the TTM period, indicating conservative leverage. Return on equity is robust at 28.43%, showcasing effective use of shareholder funds. The equity ratio is healthy, suggesting a stable asset base. Overall, Dillard's balance sheet is well-positioned to support future growth and withstand economic fluctuations.

Cash Flow

Cash flow metrics reveal a positive trajectory with a 25.06% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is strong at 0.89, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also favorable. Despite previous fluctuations, the recent improvement in cash flow generation enhances the company's financial flexibility.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.59B	6.59B	6.87B	7.00B	6.62B	4.43B
Gross Profit	2.59B	2.67B	2.84B	3.01B	2.88B	1.36B
EBITDA	921.88M	949.10M	1.14B	1.34B	1.33B	112.52M
Net Income	575.66M	593.48M	738.85M	891.64M	862.47M	-71.70M
Balance Sheet
Total Assets	3.68B	3.53B	3.45B	3.33B	3.25B	3.09B
Cash, Cash Equivalents and Short-Term Investments	1.21B	1.04B	956.32M	799.24M	716.76M	360.34M
Total Debt	551.13M	555.32M	564.44M	555.22M	608.73M	613.75M
Total Liabilities	1.77B	1.73B	1.75B	1.73B	1.79B	1.65B
Stockholders Equity	1.92B	1.80B	1.70B	1.60B	1.45B	1.44B
Cash Flow
Free Cash Flow	770.58M	609.58M	750.65M	828.29M	1.18B	192.49M
Operating Cash Flow	857.60M	714.13M	883.59M	948.39M	1.28B	252.95M
Investing Cash Flow	-146.65M	-269.73M	-115.59M	-235.85M	-69.79M	-48.38M
Financing Cash Flow	-645.68M	-534.83M	-620.04M	-768.97M	-853.81M	-121.30M

Dillard's Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 623.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DDS, the sentiment is Positive. The current price of 623.76 is above the 20-day moving average (MA) of 583.72, above the 50-day MA of 530.36, and above the 200-day MA of 438.60, indicating a bullish trend. The MACD of 24.63 indicates Negative momentum. The RSI at 69.70 is Neutral, neither overbought nor oversold. The STOCH value of 95.59 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DDS.

Dillard's Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.55B	14.29	18.42%	―	9.63%	56.06%
KSS	77 Outperform	$1.82B	8.86	5.30%	5.39%	-7.23%	-27.81%
DDS	77 Outperform	$9.74B	17.20	29.76%	4.17%	-2.44%	-10.74%
ANF	77 Outperform	$4.04B	8.13	41.86%	―	9.34%	10.61%
GAP	68 Neutral	$8.16B	9.45	25.90%	2.86%	-0.05%	15.17%
M	62 Neutral	$4.83B	10.22	11.12%	4.01%	-3.43%	169.28%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Dillard's Corporate Events

Dillard’s Reincorporation to Texas Approved by Shareholders

On August 19, 2025, Dillard’s stockholders approved the company’s reincorporation from Delaware to Texas. This decision, made during a special meeting, involved a significant majority vote, indicating strong shareholder support for the move.

Dillard’s Eliminates Series A Preferred Stock Designation

On July 18, 2025, Dillard’s, Inc. filed a Certificate of Elimination with the Secretary of State of Delaware to eliminate the Certificate of Designations related to its Series A Junior Participating Preferred Stock. This stock was reserved for a shareholder rights plan that expired in 2012, and no shares were issued. The elimination allows these shares to revert to undesignated status, impacting the company’s stock structure.