Dillard’s (NYSE:DDS) reported a resilient fiscal 2025 performance, maintaining its high-margin retail model despite a fourth quarter hampered by severe winter weather.
The department store chain posted annual net income of $570.2 million, or $36.42 per share, compared with $593.5 million, or $36.82 per share, in the prior year.
While fourth-quarter retail sales fell 1%, the company noted that operations at more than one-third of its stores were disrupted by a significant winter storm in January.
Despite the top-line headwinds, Dillard’s maintained its signature inventory discipline.
Retail gross margin remained flat at a robust 40.8% of sales, reflecting the company’s ability to avoid the deep discounting that has pressured other players in the department store sector.
Meanwhile, Dillard’s continues to prioritize returning capital to its shareholders over physical expansion.
The company’s board authorized a $30 per share special dividend during the year, a move supported by its strong cash position.