Dillard’s, Inc. Annual Report for Fiscal Year Ended January 31, 2026

Key Points for Investors

• Fiscal Year End: January 31, 2026
• Listed Securities: Class A Common Stock (DDS) — New York Stock Exchange
• Shares Outstanding (as of February 28, 2026):
  • Class A Common Stock: 11,630,838 shares
  • Class B Common Stock: 3,986,233 shares
• Public Float: \$3,465,020,033
• Well-known Seasoned Issuer: Dillard’s meets this designation
• Reporting Compliance: The company confirms full compliance with SEC reporting requirements, including Sarbanes-Oxley Act Section 404(b) auditor attestation.
• Documents Incorporated by Reference: Portions of the Proxy Statement for the Annual Meeting to be held May 28, 2026, are incorporated into Part III of Form 10-K.
• Segment Reporting: Retail operations segment is the primary business line.

Important Shareholder Information & Price Sensitive Details

• Risk Factors Highlighted:
  • Store Locations: Ongoing concern about current locations becoming less desirable and challenges in securing new, attractive sites at reasonable prices. This could directly impact sales and operational performance.
  • Vendor Allowances: Dillard’s relies on vendor allowances for advertising, payroll, and margin maintenance. Decreases in these could raise costs, reduce employee count, and impact sales and margins.
  • Cash Flow & Financing: The company’s ability to fund operations, invest in capital projects, repay debt, repurchase stock, and pay dividends depends on strong operational cash flow and access to financing. Any reduction in cash flow or financing could adversely impact earnings per share and share value.
  • Weather Risk: Unseasonable or extreme weather conditions can negatively affect inventory suitability and sales, especially due to Dillard’s concentration in energy-producing regions.
  • Economic Sensitivity: Sales are highly sensitive to macroeconomic conditions, such as unemployment, consumer confidence, inflation, and especially volatility in energy-producing regions where many stores are located.
  • Fashion Trends: The ability to swiftly adapt to changing fashion trends and consumer preferences is critical. Failure could lead to excess inventory, markdowns, and declining gross margins.
  • Brand Reputation: Maintaining a strong brand and customer loyalty is a strategic priority. Any harm to reputation can materially impact business results and share value.
  • Citibank Credit Card Alliance: Performance of the private label credit card partnership with Citibank is important. Any decrease in income or cash flow from this arrangement could negatively affect operating results and cash flows. Regulatory changes affecting credit card operations could also impact earnings.
  • Cybersecurity: The company highlights ongoing investment in information security and risk management, with oversight from the President and the Board. No material cyber incidents have been disclosed, but cyber threats remain a constant risk.
  • Employee Risks:
    • Attracting and retaining quality employees is a challenge, especially in positions with high turnover.
    • Increases in wages and healthcare costs could significantly impact financial results and cash flows.
    • Ongoing uncertainty about healthcare reform’s impact on company-sponsored medical plans.
  • Legal and Compliance Risks: Litigation from customers, employees, or others, including class action suits and regulatory actions, could affect reputation and financial performance.
• Corporate Governance: Dillard’s maintains a Code of Conduct and Corporate Governance Guidelines in line with NYSE and SEC requirements. Key documents and reports are accessible on their investor relations website, including climate change mitigation efforts.
• Financial Reporting: No restatements or corrections of previous financial statements are reported, and the company is not a shell company.
• Segment Performance: Retail operations are highlighted as the main segment, with other segment items including all SG&A other than payroll, other expenses, and gains on disposal of assets.
• Legal Proceedings: No unresolved staff comments; litigation and regulatory actions are a continuing risk but nothing material disclosed.
• Cybersecurity: Dillard’s asserts it has not experienced any material cybersecurity incidents affecting its business, operations, or financial condition.

Potential Share Price Movers

• Operational Risks: Risks related to store locations, vendor allowances, cash flow, and changing consumer trends are directly linked to sales and earnings. Any adverse developments in these areas could materially impact share price.
• Credit Card Partnership: Changes in regulatory environment or performance of the Citibank credit card alliance could affect cash flows and earnings, potentially moving the share price.
• Cybersecurity: While no material incidents have been disclosed, the increasing sophistication and frequency of cyber threats could pose a risk to operations and reputation. Investors should monitor this area closely.
• Labor Costs: Increases in minimum wage or healthcare costs may pressure margins and earnings, affecting shareholder returns.
• Economic Sensitivity: Dillard’s concentration in energy-producing regions exposes it to regional economic volatility. Macro developments in energy markets or consumer confidence could be price-sensitive.

Disclaimer

This article is for informational purposes only and does not constitute investment advice. Investors should review the full Dillard’s, Inc. Annual Report and consult their financial advisors before making investment decisions. The information presented is based on the company’s annual report for the fiscal year ended January 31, 2026, and is subject to change. No material events or restatements have been disclosed, but multiple operational and economic risks could affect future performance and share price.

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