Dillard's Declares Record $30 Special Dividend, Up 20% From Prior Year
Dillard's Inc (NYSE: DDS), a department store retailer, paid a special dividend of $30.00 per share to its Employee Stock Ownership Plan during fiscal year ended January 31, 2026. The payout marks a 20% increase from the prior year's $25.00 special dividend.
Dillard's Inc (NYSE: DDS), a department store retailer, paid a special dividend of $30.00 per share to its Employee Stock Ownership Plan during the fiscal year ended January 31, 2026. The distribution represents a 20% increase from the $25.00 per share special dividend paid in the prior fiscal year. Read more dividend announcements.
CEO William T. Dillard II called it "the largest dividend in our history" when announcing fiscal year results. The special dividend generated federal and state income tax benefits of $35.0 million, or $2.24 per share, for the company.
The company held approximately $1.1 billion in cash and short-term investments at year-end despite the record payout. The prior year's $25.00 special dividend had produced tax benefits of $30.8 million, or $1.91 per share.
| Dividend Details | Amount |
|---|---|
| Special Dividend | $30.00 per share |
| Prior Year Special Dividend | $25.00 per share |
| Increase | 20% |
| Record Date | Not disclosed |
| Ex-Dividend Date | Not disclosed |
| Payment Date | Fiscal year ended January 31, 2026 |
Fiscal Year Performance
Dillard's reported net income of $570.2 million, or $36.42 per share, for the 52 weeks ended January 31, 2026, compared to $593.5 million, or $36.82 per share, in the prior year. Net sales were essentially flat at $6.474 billion versus $6.483 billion.
Total retail sales, which exclude the company's construction business CDI Contractors, were unchanged as a percentage at $6.232 billion. Comparable store sales were also unchanged year-over-year.
Retail gross margin declined slightly to 40.8% from 41.0% in the prior year. Operating expenses increased to $1.759 billion, or 27.2% of sales, from $1.731 billion, or 26.7% of sales. Inventory levels rose 2% at year-end.
The fiscal year results included a pretax gain of $20.4 million, or $1.00 per share after tax, primarily from the sale of five properties.
Fourth Quarter Results
Fourth quarter net income was $203.7 million, or $13.05 per share, compared to $214.4 million, or $13.48 per share, in the prior year period. Net sales for the 13 weeks ended January 31, 2026 were $1.962 billion, down from $2.017 billion.
Total retail sales decreased 1% to $1.916 billion, with comparable store sales also down 1%. The company noted that sales in over a third of its stores were disrupted by a winter storm in the third weekend of January 2026.
Retail gross margin held steady at 36.1% of sales in both periods. Operating expenses increased to $463.0 million, or 23.6% of sales, from $452.0 million, or 22.4% of sales, in the prior year quarter.