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Get filing alertsDillard's Q2 EPS $6.25 boosted by $1.82 tariff refund and $5.10 litigation settlement
Filed August 13, 2026 · Period ending August 13, 2026 · ~1 min read
Key Changes
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high
Q2 EPS $6.25 vs $4.66 prior year, includes $1.82/share from IEEPA tariff refunds (one-time, no further refunds expected) and reflects $5.10/share YTD gain from payment card interchange fee lawsuit settlement.
Exhibit 99.1 view on EDGAR → -
high
Retail gross margin expanded 280 basis points to 40.9%, with 260 bps from tariff refunds and ~20 bps underlying improvement; management expects no additional significant tariff refunds.
Exhibit 99.1 view on EDGAR → -
medium
Comparable store sales up 1% on $1.455B retail sales; inventory rose 5%, outpacing sales growth.
Exhibit 99.1 view on EDGAR → -
medium
Ended quarter with $1.26B in cash and short-term investments after retiring $96M in debt; $305.6M total debt outstanding.
Exhibit 99.1 view on EDGAR →
Summary
Dillard's reported Q2 2026 earnings of $6.25 per share, up from $4.66 in the prior year quarter, driven by two significant one-time items: $1.82/share from IEEPA tariff refunds and a $5.10/share year-to-date gain from settling a long-standing payment card interchange fee lawsuit. Stripping out the tariff benefit, core Q2 earnings were approximately $4.43/share, still ahead of last year.
Retail gross margin expanded 280 basis points to 40.9%, though 260 basis points came from the tariff refunds, leaving modest underlying improvement. Management stated no further significant tariff refunds are expected.
Comparable store sales grew 1% on total retail sales of $1.455 billion, which the CEO characterized as pointing to "a somewhat resilient consumer." Inventory increased 5%, outpacing sales growth and warranting attention in future quarters. The company strengthened its balance sheet, ending the quarter with $1.26 billion in cash and short-term investments after paying down $96 million in debt, leaving total debt at $305.6 million. The one-time gains materially flatter the headline results; investors should focus on the modest comp growth and inventory build when assessing underlying momentum.
Section-by-Section Diff
Event · Item 2.02 — Results of Operations and Financial Condition
Dillard's disclosed Q2 2026 financial results for the 13 and 26 weeks ended August 1, 2026 via press release.
Added in current filing · verify on EDGAR →
On August 13, 2026, the registrant issued a press release announcing results for the 13 and 26 weeks ended August 1, 2026.
Dillard's announced financial results for its second quarter and first half of fiscal 2026. The 8-K references a press release (Exhibit 99.1) containing the detailed results, but the body of the filing does not disclose specific revenue, earnings, or other quantitative metrics.
Event · Exhibit 99.1
Added in current filing · view on EDGAR →
Dillard’s reported net income for the 13 weeks ended August 1, 2026 of $97.7 million, or $6.25 per share, compared to $72.8 million, or $4.66 per share, for the 13 weeks ended August 2, 2025. Net income for the 13 weeks ended August 1, 2026, includes $37.2 million ($28.4 million after tax, or $1.82 per share) in refunds of International Emergency Economic Powers Act (IEEPA) tariffs.
Dillard's earned $97.7 million ($6.25/share) in Q2 2026 versus $72.8 million ($4.66/share) in Q2 2025. The current quarter includes $37.2 million in IEEPA tariff refunds ($28.4 million after tax, or $1.82/share). Excluding the tariff refunds, core earnings were approximately $4.43/share, still up from the prior year.
Added in current filing · view on EDGAR →
Retail gross margin for the 13 weeks ended August 1, 2026 was 40.9% of sales compared to 38.1% of sales for the 13 weeks ended August 2, 2025. Retail gross margin was positively impacted (260 basis points of sales) by the aforementioned $37.2 million IEEPA tariff refunds. The Company does not expect any additional significant IEEPA tariff refunds.
Retail gross margin improved 280 basis points to 40.9% from 38.1% in the prior year quarter. The tariff refunds contributed 260 basis points of this improvement, leaving approximately 20 basis points of underlying margin expansion. Management states no further significant tariff refunds are expected.
Added in current filing · view on EDGAR →
Included in net income for the 26 weeks ended August 1, 2026 are these items:
● $37.2 million ($28.4 million after tax, or $1.82 per share) in refunds of IEEPA tariffs
● a pre-tax gain on litigation settlement, net of legal fees, of $104.1 million ($79.6 million after tax or $5.10 per share) related to the Company’s favorable settlement of a long-standing lawsuit involving payment card interchange fees
Year-to-date results include a $104.1 million pre-tax gain ($79.6 million after tax, or $5.10/share) from settling a long-standing lawsuit over payment card interchange fees. Combined with the tariff refunds, these one-time items contributed $6.92/share to the year-to-date EPS of $22.30.
Added in current filing · view on EDGAR →
We ended the quarter with over $1.2 billion in cash and short-term investments after paying off $96 million in debt.
Dillard's ended Q2 with over $1.2 billion in cash and short-term investments after retiring $96 million in debt during the quarter. The balance sheet shows $763.1 million in cash and $497.7 million in short-term investments, totaling $1.26 billion, versus $225.6 million in long-term debt and $80.0 million in current debt maturities.
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Figures/quotes linked to EDGAR · Narrative written by AI · Aug 14, 2026 · How we verify