Other segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assets0000028917--01-312025Q2Other segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of assetsOther segment items for each reportable segment includes: • All selling, general and administrative expenses other than payroll expense • Other expense • Gain on disposal of 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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended August 2, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to .

Commission File Number: 1-6140

DILLARD’S, INC.

(Exact name of registrant as specified in its charter)



TEXAS		71-0388071
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

1600 CANTRELL ROAD, LITTLE ROCK, ARKANSAS 72201

(Address of principal executive offices)

(Zip Code)

(501) 376-5200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class A Common Stock	DDS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐
Smaller reporting company	☐	Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes ☒ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

CLASS A COMMON STOCK as of August 30, 2025 11,626,733

CLASS B COMMON STOCK as of August 30, 2025 3,986,233

Table of Contents

Index

DILLARD’S, INC.

		Page
		Number
PART I. FINANCIAL INFORMATION

Item 1.	Financial Statements (Unaudited):

	Condensed Consolidated Balance Sheets as of August 2, 2025, February 1, 2025 and August 3, 2024	3

	Condensed Consolidated Statements of Income for the Three and Six Months Ended August 2, 2025 and August 3, 2024	4

	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended August 2, 2025 and August 3, 2024	5

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Six Months Ended August 2, 2025 and August 3, 2024	6

	Condensed Consolidated Statements of Cash Flows for the Six Months Ended August 2, 2025 and August 3, 2024	8

	Notes to Condensed Consolidated Financial Statements	9

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28

Item 4.	Controls and Procedures	28

PART II. OTHER INFORMATION

Item 1.	Legal Proceedings	29

Item 1A.	Risk Factors	29

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29

Item 5.	Other Information	29

Item 6.	Exhibits	30

SIGNATURES		31

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

DILLARD’S, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In Thousands)


	August 2,		February 1,		August 3,
	2025		2025		2024
Assets
Current assets:
Cash and cash equivalents	$	1,012,011	$	717,854	$	946,728
Accounts receivable		52,212		55,700		64,468
Short-term investments		199,812		325,675		123,751
Merchandise inventories		1,219,765		1,172,047		1,191,432
Federal and state income taxes		—		—		35,462
Other current assets		88,280		96,794		91,701

Total current assets		2,572,080		2,368,070		2,453,542

Property and equipment (net of accumulated depreciation of $2,847,558, $2,774,081 and $2,727,608, respectively)		955,092		1,002,248		1,044,866
Operating lease assets		29,531		33,562		38,936
Deferred income taxes		67,714		69,099		63,935
Other assets		60,056		58,075		60,583

Total assets	$	3,684,473	$	3,531,054	$	3,661,862

Liabilities and stockholders’ equity
Current liabilities:
Trade accounts payable and accrued expenses	$	761,226	$	795,023	$	768,758
Current portion of long-term debt		96,000		—		—
Current portion of operating lease liabilities		10,474		11,411		11,535
Federal and state income taxes		91,012		28,472		—

Total current liabilities		958,712		834,906		780,293

Long-term debt		225,621		321,567		321,514
Operating lease liabilities		19,035		22,345		27,440
Other liabilities		361,993		356,076		383,694
Subordinated debentures		200,000		200,000		200,000
Commitments and contingencies
Stockholders’ equity:
Common stock		1,241		1,241		1,240
Additional paid-in capital		972,855		971,524		968,909
Accumulated other comprehensive loss		(48,235)		(49,851)		(83,321)
Retained earnings		6,456,873		6,228,048		6,294,693
Less treasury stock, at cost		(5,463,622)		(5,354,802)		(5,232,600)

Total stockholders’ equity		1,919,112		1,796,160		1,948,921

Total liabilities and stockholders’ equity	$	3,684,473	$	3,531,054	$	3,661,862

See notes to condensed consolidated financial statements.

Table of Contents

DILLARD’S, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

(In Thousands, Except Per Share Data)


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Net sales	$	1,513,830	$	1,489,938	$	3,042,693	$	3,038,989
Service charges and other income		22,173		24,708		40,281		48,466

		1,536,003		1,514,646		3,082,974		3,087,455

Cost of sales		959,306		930,331		1,816,997		1,788,156
Selling, general and administrative expenses		434,165		433,659		855,855		860,333
Depreciation and amortization		44,659		46,376		89,144		92,495
Rentals		4,551		4,956		9,147		9,980
Interest and debt (income) expense, net		(1,457)		(3,934)		(2,279)		(7,466)
Other expense		5,035		6,158		10,728		12,316
Gain on disposal of assets		(4,841)		(13)		(4,900)		(280)

Income before income taxes		94,585		97,113		308,282		331,921
Income taxes		21,750		22,630		71,630		77,400

Net income	$	72,835	$	74,483	$	236,652	$	254,521

Earnings per share:
Basic and diluted	$	4.66	$	4.59	$	15.08	$	15.68

See notes to condensed consolidated financial statements.

Table of Contents

DILLARD’S, INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

(In Thousands)


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Net income	$	72,835	$	74,483	$	236,652	$	254,521
Other comprehensive income:
Amortization of retirement plan and other retiree benefit adjustments (net of tax of $121, $239, $242, and $478, respectively)		808		1,943		1,616		3,887

Comprehensive income	$	73,643	$	76,426	$	238,268	$	258,408

See notes to condensed consolidated financial statements.

Table of Contents

DILLARD’S, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In Thousands, Except Share and Per Share Data)


	Three Months Ended August 2, 2025
					Accumulated
			Additional		Other
	Common		Paid-in		Comprehensive		Retained		Treasury
	Stock		Capital		Loss		Earnings		Stock		Total
Balance, May 3, 2025	$	1,241	$	971,528	$	(49,043)	$	6,387,941	$	(5,453,782)	$	1,857,885
Net income		—		—		—		72,835		—		72,835
Other comprehensive income		—		—		808		—		—		808
Issuance of 3,200 shares under equity plans		—		1,327		—		—		—		1,327
Purchase of 24,469 shares of treasury stock (including excise tax)		—		—		—		—		(9,840)		(9,840)
Cash dividends declared:
Common stock, $0.25 per share		—		—		—		(3,903)		—		(3,903)
Balance, August 2, 2025	$	1,241	$	972,855	$	(48,235)	$	6,456,873	$	(5,463,622)	$	1,919,112


	Three Months Ended August 3, 2024
					Accumulated
			Additional		Other
	Common		Paid-in		Comprehensive		Retained		Treasury
	Stock		Capital		Loss		Earnings		Stock		Total
Balance, May 4, 2024	$	1,240	$	967,348	$	(85,264)	$	6,224,268	$	(5,232,600)	$	1,874,992
Net income		—		—		—		74,483		—		74,483
Other comprehensive income		—		—		1,943		—		—		1,943
Issuance of 3,600 shares under equity plans		—		1,561		—		—		—		1,561
Cash dividends declared:
Common stock, $0.25 per share		—		—		—		(4,058)		—		(4,058)
Balance, August 3, 2024	$	1,240	$	968,909	$	(83,321)	$	6,294,693	$	(5,232,600)	$	1,948,921


	Six Months Ended August 2, 2025
					Accumulated
			Additional		Other
	Common		Paid-in		Comprehensive		Retained		Treasury
	Stock		Capital		Loss		Earnings		Stock		Total
Balance, February 1, 2025	$	1,241	$	971,524	$	(49,851)	$	6,228,048	$	(5,354,802)	$	1,796,160
Net income		—		—		—		236,652		—		236,652
Other comprehensive income		—		—		1,616		—		—		1,616
Issuance of 3,210 shares under equity plans		—		1,331		—		—		—		1,331
Purchase of 300,013 shares of treasury stock (including excise tax)		—		—		—		—		(108,820)		(108,820)
Cash dividends declared:
Common stock, $0.50 per share		—		—		—		(7,827)		—		(7,827)
Balance, August 2, 2025	$	1,241	$	972,855	$	(48,235)	$	6,456,873	$	(5,463,622)	$	1,919,112

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	Six Months Ended August 3, 2024
					Accumulated
			Additional		Other
	Common		Paid-in		Comprehensive		Retained		Treasury
	Stock		Capital		Loss		Earnings		Stock		Total
Balance, February 3, 2024	$	1,240	$	967,348	$	(87,208)	$	6,048,288	$	(5,232,600)	$	1,697,068
Net income		—		—		—		254,521		—		254,521
Other comprehensive income		—		—		3,887		—		—		3,887
Issuance of 3,600 shares under equity plans		—		1,561		—		—		—		1,561
Cash dividends declared:
Common stock, $0.50 per share		—		—		—		(8,116)		—		(8,116)
Balance, August 3, 2024	$	1,240	$	968,909	$	(83,321)	$	6,294,693	$	(5,232,600)	$	1,948,921

See notes to condensed consolidated financial statements.

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DILLARD’S, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In Thousands)


	Six Months Ended
	August 2,		August 3,
	2025		2024
Operating activities:
Net income	$	236,652	$	254,521
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and other deferred costs		89,889		93,387
Gain on disposal of assets		(4,900)		(280)
Accrued interest on short-term investments		(5,610)		(7,062)
Changes in operating assets and liabilities:
Decrease (increase) in accounts receivable		3,488		(3,921)
Increase in merchandise inventories		(47,718)		(97,433)
Decrease in other current assets		7,434		3,860
Decrease (increase) in other assets		1,114		(1,466)
Decrease in trade accounts payable and accrued expenses and other liabilities		(24,522)		(3,201)
Increase (decrease) in income taxes payable		63,566		(62,448)

Net cash provided by operating activities		319,393		175,957

Investing activities:
Purchase of property and equipment and capitalized software		(43,527)		(61,086)
Proceeds from disposal of assets		6,029		336
Proceeds from insurance		1,521		—
Purchase of short-term investments		(273,497)		(319,505)
Proceeds from maturities of short-term investments		404,970		350,852
Investment in joint venture		(1,750)		—

Net cash provided by (used in) investing activities		93,746		(29,403)

Financing activities:
Cash dividends paid		(7,900)		(8,113)
Purchase of treasury stock		(107,756)		—
Issuance cost of line of credit		(3,326)		—

Net cash used in financing activities		(118,982)		(8,113)

Increase in cash and cash equivalents		294,157		138,441
Cash and cash equivalents, beginning of period		717,854		808,287

Cash and cash equivalents, end of period	$	1,012,011	$	946,728

Non-cash transactions of investing and financing activities:
Accrued capital expenditures	$	5,083	$	8,442
Stock awards		1,331		1,561
Accrued purchases of treasury stock and excise taxes		1,064		—
Lease assets obtained in exchange for new operating lease liabilities		1,784		2,152

See notes to condensed consolidated financial statements.

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DILLARD’S, INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements of Dillard’s, Inc. (the “Company”) have been prepared in accordance with the rules of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“GAAP”) for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and six months ended August 2, 2025 are not necessarily indicative of the results that may be expected for the fiscal year ending January 31, 2026 due to, among other factors, the seasonal nature of the business.

These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended February 1, 2025 filed with the SEC on March 28, 2025.

Note 2. Accounting Standards

Recently Adopted Accounting Pronouncements

There have been no recently adopted accounting pronouncements that had a material impact on the Company’s condensed consolidated financial statements.

Recently Issued Accounting Pronouncements

Management has considered all recent accounting pronouncements, except as noted below, and believes there is no accounting guidance issued but not yet effective that would be material to the Company’s condensed consolidated financial statements.

Improvements to Income Tax Disclosures

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The update requires increased transparency in tax disclosures, specifically by expanding requirements for rate reconciliation and income taxes paid information. ASU 2023-09 is effective for fiscal years beginning after December 15, 2024. Early adoption is permitted. The Company is currently evaluating the impact that this ASU will have on its income tax disclosures.

Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU No. 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40). The update requires disclosure, in the notes to financial statements, of specified information about certain costs and expenses. The amendments in the update require that at each interim and annual reporting period an entity (i) disclose the amounts of (a) purchases of inventory, (b) employee compensation, (c) depreciation, (d) intangible asset amortization, and (e) depreciation, depletion, and amortization recognized as part of oil and gas-producing activities (DD&A) (or other amounts of depletion expense) included in each relevant expense caption; (ii) include certain amounts that are already required to be disclosed under current GAAP in the same disclosure as the other disaggregation requirements; (iii) disclose a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated quantitatively; and (iv) disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses. The amendments in this update are effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact that this guidance will have on its consolidated financial statements and accompanying notes.

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Note 3. Business Segments

The Company operates in two reportable segments: the operation of retail department stores (“retail operations”) and a general contracting construction company (“construction”).

For the Company’s retail operations segment, the Company determined its operating segments on a store by store basis. Each store’s operating performance has been aggregated into one reportable segment for financial reporting purposes because stores are similar in each of the following areas: economic characteristics, class of consumer, nature of products and distribution methods. Revenues from external customers are derived from merchandise sales, and the Company does not rely on any major customers as a source of revenue. Across all stores, the Company operates one store format under the Dillard’s name where each store offers the same general mix of merchandise with similar categories and similar customers. The Company believes that disaggregating its retail operations segment would not provide meaningful additional information.

The Company’s chief operating decision maker is the Executive Committee of the Board of Directors, which is comprised of Dillard’s Chief Executive Officer and its President. The members of Dillard’s Executive Committee use their experience in the retail industry and extensive and specific knowledge of the Dillard’s businesses when assessing segment performance and deciding how to allocate resources.

The following table summarizes the percentage of net sales by segment and major product line:


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Retail operations segment:
Cosmetics	15	%	15	%	15	%	15	%
Ladies’ apparel	22		22		22		23
Ladies’ accessories and lingerie	15		14		14		13
Juniors’ and children’s apparel	8		8		9		9
Men’s apparel and accessories	20		20		19		19
Shoes	13		14		14		14
Home and furniture	3		3		3		3
	96		96		96		96
Construction segment	4		4		4		4
Total	100	%	100	%	100	%	100	%

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The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations:


	Three Months Ended August 2, 2025									Three Months Ended August 3, 2024
(in thousands of dollars)	Retail Operations			Construction			Consolidated			Retail Operations			Construction			Consolidated
Net sales from customers	$	1,446,843		$	74,073		$	1,520,916		$	1,426,431		$	70,815		$	1,497,246
Elimination of intersegment revenues		-			(7,086)			(7,086)			-			(7,308)			(7,308)
Net sales from external customers		1,446,843			66,987			1,513,830			1,426,431			63,507			1,489,938

Reconciliation of revenue
Service charges and other income		22,140			33			22,173			24,681			27			24,708
Total net sales and service charges and other income		1,468,983			67,020			1,536,003			1,451,112			63,534			1,514,646

Less: ^(a)
Cost of sales		895,918			63,388			959,306			869,233			61,098			930,331
Payroll expense ^(b)		268,311			1,857			270,168			270,352			1,784			272,136
Depreciation and amortization		44,577			82			44,659			46,213			163			46,376
Rentals		4,496			55			4,551			4,903			53			4,956
Interest and investment income		(11,298)			(233)			(11,531)			(13,521)			(216)			(13,737)
Interest and debt expense		10,074			-			10,074			9,803			-			9,803
Other segment items ^(c)		163,647			544			164,191			166,652			1,016			167,668
Income before income taxes	$	93,258		$	1,327			94,585		$	97,477		$	(364)			97,113
Income taxes								21,750									22,630
Net income							$	72,835								$	74,483

Gross margin ^(d)	$	550,925		$	3,599		$	554,524		$	557,198		$	2,409		$	559,607
Gross margin percentage		38.1	%		5.4	%		36.6	%		39.1	%		3.8	%		37.6	%

Total assets	$	3,608,508		$	75,965		$	3,684,473		$	3,584,664		$	77,198		$	3,661,862
Capital expenditures	$	26,641		$	33		$	26,674		$	25,892		$	19		$	25,911

(a)	The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

(b)	Payroll expense does not include amounts capitalized on the balance sheet or included within other expense categories.

(c)	Other segment items for each reportable segment includes:

●All selling, general and administrative expenses other than payroll expense

●Other expense

●Gain on disposal of assets

(d)	The calculation of gross margin is net sales from external customers less cost of sales.

Intersegment construction revenues of $7.1 million and $7.3 million for the three months ended August 2, 2025 and August 3, 2024, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods.

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	Six Months Ended August 2, 2025									Six Months Ended August 3, 2024
(in thousands of dollars)	Retail Operations			Construction			Consolidated			Retail Operations			Construction			Consolidated
Net sales from customers	$	2,914,780		$	141,362		$	3,056,142		$	2,919,074		$	136,654		$	3,055,728
Elimination of intersegment revenues		-			(13,449)			(13,449)			-			(16,739)			(16,739)
Net sales from external customers		2,914,780			127,913			3,042,693			2,919,074			119,915			3,038,989

Reconciliation of revenue
Service charges and other income		40,222			59			40,281			48,340			126			48,466
Total net sales and service charges and other income		2,955,002			127,972			3,082,974			2,967,414			120,041			3,087,455

Less: ^(a)
Cost of sales		1,695,590			121,407			1,816,997			1,672,691			115,465			1,788,156
Payroll expense ^(b)		531,672			3,436			535,108			537,045			3,777			540,822
Depreciation and amortization		88,990			154			89,144			92,264			231			92,495
Rentals		9,035			112			9,147			9,864			116			9,980
Interest and investment income		(22,248)			(443)			(22,691)			(26,842)			(460)			(27,302)
Interest and debt expense		20,412			-			20,412			19,836			-			19,836
Other segment items ^(c)		325,435			1,140			326,575			329,872			1,675			331,547
Income before income taxes	$	306,116		$	2,166			308,282		$	332,684		$	(763)			331,921
Income taxes								71,630									77,400
Net income							$	236,652								$	254,521

Gross margin ^(d)	$	1,219,190		$	6,506		$	1,225,696		$	1,246,383		$	4,450		$	1,250,833
Gross margin percentage		41.8	%		5.1	%		40.3	%		42.7	%		3.7	%		41.2	%

Total assets	$	3,608,508		$	75,965		$	3,684,473		$	3,584,664		$	77,198		$	3,661,862
Capital expenditures	$	43,461		$	66		$	43,527		$	61,033		$	53		$	61,086

(a)	The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker.

(b)	Payroll expense does not include amounts capitalized on the balance sheet or included within other expense categories.

(c)	Other segment items for each reportable segment includes:

●

All selling, general and administrative expenses other than payroll expense

●

Other expense

●

Gain on disposal of assets

(d)	The calculation of gross margin is net sales from external customers less cost of sales.

Intersegment construction revenues of $13.4 million and $16.7 million for the six months ended August 2, 2025 and August 3, 2024, respectively, were eliminated during consolidation and have been excluded from net sales for the respective periods.

The retail operations segment gives rise to contract liabilities through the customer loyalty program associated with Dillard’s private label cards and through the issuances of gift cards. The customer loyalty program liability and a portion of the gift card liability are included in trade accounts payable and accrued expenses, and a portion of the gift card

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liability is included in other liabilities on the condensed consolidated balance sheets. Our retail operations segment contract liabilities are as follows:


Retail
	August 2,		February 1,		August 3,		February 3,
(in thousands of dollars)	2025		2025		2024		2024
Contract liabilities	$	64,740	$	76,667	$	70,207	$	85,227

During the six months ended August 2, 2025 and August 3, 2024, the Company recorded $32.7 million and $38.1 million, respectively, in revenue that was previously included in the retail operations contract liability balances of $76.7 million and $85.2 million at February 1, 2025 and February 3, 2024, respectively.

Construction contracts give rise to accounts receivable, contract assets and contract liabilities. We record accounts receivable based on amounts expected to be collected from customers. We also record costs and estimated earnings in excess of billings on uncompleted contracts (contract assets) and billings in excess of costs and estimated earnings on uncompleted contracts (contract liabilities) in other current assets and trade accounts payable and accrued expenses, respectively, in the condensed consolidated balance sheets. The amounts included in the condensed consolidated balance sheets are as follows:


Construction
	August 2,		February 1,		August 3,		February 3,
(in thousands of dollars)	2025		2025		2024		2024
Accounts receivable	$	45,130	$	46,646	$	53,548	$	47,240
Costs and estimated earnings in excess of billings on uncompleted contracts		1,713		3,913		3,685		1,695
Billings in excess of costs and estimated earnings on uncompleted contracts		10,753		6,983		9,543		6,307

During the six months ended August 2, 2025 and August 3, 2024, the Company recorded $6.6 million and $5.4 million, respectively, in revenue that was previously included in billings in excess of costs and estimated earnings on uncompleted contracts of $7.0 million and $6.3 million at February 1, 2025 and February 3, 2024, respectively.

The remaining performance obligations related to executed construction contracts totaled $129.5 million, $202.8 million and $234.0 million at August 2, 2025, February 1, 2025 and August 3, 2024, respectively.

Note 4. Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share for the periods indicated (in thousands, except per share data).


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Net income	$	72,835	$	74,483	$	236,652	$	254,521

Weighted average shares of common stock outstanding		15,622		16,233		15,698		16,232

Basic and diluted earnings per share	$	4.66	$	4.59	$	15.08	$	15.68

The Company maintains a capital structure in which common stock is the only equity security issued and outstanding, and there were no shares of preferred stock, stock options, other dilutive securities or potentially dilutive securities issued or outstanding during the three months and six months ended August 2, 2025 and August 3, 2024.

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Note 5. Commitments and Contingencies

Various legal proceedings, in the form of lawsuits and claims, which occur in the normal course of business, are pending against the Company and its subsidiaries. In the opinion of management, disposition of these matters, individually or in the aggregate, is not expected to materially affect the Company’s financial position, cash flows or results of operations.

At August 2, 2025, letters of credit totaling $25.3 million were issued under the Company’s revolving credit facility. See Note 7, Revolving Credit Agreement, for additional information.

Note 6. Benefit Plans

The Company has an unfunded, nonqualified defined benefit plan (“Pension Plan”) for its officers. The Pension Plan is noncontributory and provides benefits based on years of service and compensation during employment. Pension expense is determined using an actuarial cost method to estimate the total benefits ultimately payable to officers and allocates this cost to service periods. The actuarial assumptions used to calculate pension costs are reviewed annually. The Company contributed $2.1 million and $4.3 million to the Pension Plan during the three and six months ended August 2, 2025, respectively, and expects to make additional contributions to the Pension Plan of approximately $4.4 million during the remainder of fiscal 2025.

The components of net periodic benefit costs are as follows:


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
(in thousands of dollars)	2025		2024		2025		2024
Components of net periodic benefit costs:
Service cost	$	1,439	$	1,588	$	2,878	$	3,177
Interest cost		4,106		3,976		8,212		7,951
Net actuarial loss		928		2,182		1,857		4,365
Net periodic benefit costs	$	6,473	$	7,746	$	12,947	$	15,493

The service cost component of net periodic benefit costs is included in selling, general and administrative expenses, and the interest costs and net actuarial loss components are included in other expense in the condensed consolidated statements of income.

Note 7. Revolving Credit Agreement

The Company maintains a credit facility (“credit agreement”) for general corporate purposes including, among other uses, working capital financing, the issuance of letters of credit, capital expenditures and, subject to certain restrictions, the repayment of existing indebtedness and share repurchases. The credit agreement, which is secured by certain deposit accounts of the Company and certain inventory of certain subsidiaries, provides a borrowing capacity of $800 million, subject to certain limitations as outlined in the credit agreement, with a $200 million expansion option.

In March 2025, the Company amended and extended the credit agreement (the "2025 amendment"), replacing the Company’s previous amended credit agreement. The 2025 amendment continues to have the 0.10% per annum credit spread adjustment to the interest rate for term benchmark and RFR loans but reduced the applicable rate to (A) (x) 1.25% per annum in the case of term benchmark and RFR loans and (y) 0.25% per annum in the case of base rate loans when average quarterly availability is greater than or equal to 50% of the total commitments and (B) (x) 1.50% per annum in the case of term benchmark and RFR loans and (y) 0.50% per annum in the case of base rate loans when average quarterly availability is less than 50% of the total commitments. The 2025 amendment reduced the unused commitment fee to (A) 0.25% per annum when the average amount utilized is less than 50% of the total commitments and (B) 0.20% per annum when the average amount utilized is greater than or equal to 50% of the total commitments. The facility was arranged by JPMorgan Chase Bank, N.A. As long as availability exceeds $80 million and certain events of default have

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not occurred and are not continuing, there are no financial covenant requirements under the credit agreement. The credit agreement, as amended by the 2025 amendment, matures on March 12, 2030.

At August 2, 2025, no borrowings were outstanding, and letters of credit totaling $25.3 million were issued under the credit agreement leaving unutilized availability under the facility of $774.7 million.

Note 8. Stock Repurchase Programs

In May 2023, the Company’s Board of Directors approved a stock repurchase program authorizing the Company to repurchase up to $500 million of its Class A Common Stock (“May 2023 Stock Plan”). The May 2023 Stock Plan permits the Company to repurchase its Class A Common Stock in the open market, pursuant to preset trading plans meeting the requirements of Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, or through privately negotiated transactions. The May 2023 Stock Plan has no expiration date.

The following is a summary of share repurchase activity for the periods indicated (in thousands, except per share data):


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Cost of shares repurchased	$	9,755	$	—	$	107,752	$	—
Number of shares repurchased		24		—		300		—
Average price per share	$	398.67	$	—	$	359.16	$	—

All repurchases of the Company’s Class A Common Stock above were made at the market price at the trade date, and all amounts paid to reacquire these shares were allocated to treasury stock. As of August 2, 2025, $165.2 million of authorization remained under the May 2023 Stock Plan.

Note 9. Income Taxes

During the three and six months ended August 2, 2025 and August 3, 2024, income tax expense differed from what would be computed using the statutory federal income tax rate primarily due to the effects of state and local income taxes.

Note 10. Fair Value Disclosures

The estimated fair values of financial instruments presented herein have been determined by the Company using available market information and appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of amounts the Company could realize in a current market exchange.

The fair value of the Company’s long-term debt and subordinated debentures are based on market prices and are categorized as Level 1 in the fair value hierarchy.

The fair value of the Company’s cash and cash equivalents and trade accounts receivable approximates their carrying values at August 2, 2025 due to the short-term maturities of these instruments. The Company’s short-term investments are recorded at amortized cost, which is consistent with the Company’s held-to-maturity classification. The fair value of the Company’s long-term debt at August 2, 2025 was approximately $335.3 million. The carrying value of the Company’s long-term debt, including current portion, at August 2, 2025 was approximately $321.6 million. The fair value of the Company’s subordinated debentures at August 2, 2025 was approximately $208.2 million. The carrying value of the Company’s subordinated debentures at August 2, 2025 was $200 million.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion should be read in conjunction with the condensed consolidated financial statements and the footnotes thereto included elsewhere in this report, as well as the financial and other information included in our Annual Report on Form 10-K for the fiscal year ended February 1, 2025.

EXECUTIVE OVERVIEW

Management was encouraged to report a sales increase for the second quarter of 2025 compared to the second quarter of 2024 as well as by strengthening sales trends in July. The Company noted its focus on inventory control in a rapidly changing operating environment during the quarter.

Compared to the prior year second quarter, total retail sales (which exclude construction sales) increased 1% and sales in comparable stores increased 1%. Retail gross margin was 38.1% of sales compared to 39.1%. Inventory increased 2% at August 2, 2025 compared to August 3, 2024.

Selling, general and administrative expenses for the three months ended August 2, 2025 increased $0.5 million to $434.2 million (28.7% of sales) from $433.7 million (29.1% of sales) for the prior year second quarter as savings in payroll expense was offset by increases in various other expense categories.

For the three months ended August 2, 2025, the Company reported net income of $72.8 million ($4.66 per share) compared to net income of $74.5 million ($4.59 per share) for the three months ended August 3, 2024. Included in net income for the three months ended August 2, 2025, is a pretax gain of $4.8 million ($3.7 million after tax or $0.24 per share) primarily related to the sale of three properties.

Net cash provided by operating activities was $319.4 million for the six months ended August 2, 2025 compared to $176.0 million for the prior year six-month period, with the increase primarily due to changes in income taxes payable following a federal disaster declaration which allowed the postponement of certain income tax payments.

As of August 2, 2025, the Company had working capital of $1.613 billion (including cash and cash equivalents of $1.012 billion and short-term investments of $199.8 million) and $521.6 million of total debt outstanding, including one scheduled debt maturity of $96.0 million due July 2026, $225.6 million of long-term debt and $200.0 million of subordinated debentures.

The Company operated 272 Dillard’s stores, including 28 clearance centers, and an internet store as of August 2, 2025.

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Key Performance Indicators

We use a number of key indicators of financial condition and operating performance to evaluate our business, including the following:


	Three Months Ended
	August 2,			August 3,
	2025			2024
Net sales (in millions)	$	1,513.8		$	1,489.9
Retail stores sales trend		1	%		(5)	%
Comparable retail stores sales trend		1	%		(5)	%
Gross margin (in millions)	$	554.5		$	559.6
Gross margin as a percentage of net sales		36.6	%		37.6	%
Retail gross margin as a percentage of retail net sales		38.1	%		39.1	%
Selling, general and administrative expenses as a percentage of net sales		28.7	%		29.1	%
Cash flow provided by operations (in millions)*	$	319.4		$	176.0
Total retail store count at end of period		272			273
Retail sales per square foot	$	32		$	31
Retail store inventory trend		2	%		—	%
Annualized retail merchandise inventory turnover		2.5			2.6

*Cash flow from operations data is for the six months ended August 2, 2025 and August 3, 2024.

General

Net sales. Net sales includes merchandise sales of comparable and non-comparable stores and revenue recognized on contracts of CDI Contractors, LLC (“CDI”), the Company’s general contracting construction company. Comparable store sales includes sales for those stores which were in operation for a full period in both the most recently completed quarter and the corresponding quarter for the prior fiscal year, including our internet store. Comparable store sales excludes changes in the allowance for sales returns. Non-comparable store sales includes: sales in the current fiscal year from stores opened during the previous fiscal year before they are considered comparable stores; sales from new stores opened during the current fiscal year; sales in the previous fiscal year for stores closed during the current or previous fiscal year that are no longer considered comparable stores; sales in clearance centers; and changes in the allowance for sales returns.

Sales occur as a result of interaction with customers across multiple points of contact, creating an interdependence between in-store and online sales. Online orders are fulfilled from both fulfillment centers and retail stores. Additionally, online customers have the ability to buy online and pick up in-store. Retail in-store customers have the ability to purchase items that may be ordered and fulfilled from either a fulfillment center or another retail store location. Online customers may return orders via mail, or customers may return orders placed online to retail store locations. Customers who earn reward points under the private label credit card program may earn and redeem rewards through in-store or online purchases.

Service charges and other income. Service charges and other income includes income generated through the Company’s private label credit card portfolio alliances. These alliances include the former marketing and servicing alliance with Wells Fargo Bank, N.A. (“Wells Fargo Alliance”), which terminated in September 2024, and the Company’s new long-term marketing and servicing alliance with Citibank, N.A (“Citibank Alliance”), which replaced the Wells Fargo Alliance upon its termination. Other income includes rental income, shipping and handling fees and gift card breakage.

Cost of sales. Cost of sales includes the cost of merchandise sold (net of purchase discounts, non-specific margin maintenance allowances and merchandise margin maintenance allowances), bankcard fees, freight to the distribution centers, employee and promotional discounts, shipping to customers and direct payroll for salon personnel. Cost of sales also includes CDI contract costs, which comprise all direct material and labor costs, subcontract costs and those indirect costs related to contract performance, such as indirect labor, employee benefits and insurance program costs.

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Selling, general and administrative expenses. Selling, general and administrative expenses include buying, occupancy, selling, distribution, warehousing, store and corporate expenses (including payroll and employee benefits), insurance, employment taxes, advertising, management information systems, legal and other corporate level expenses. Buying expenses consist of payroll, employee benefits and travel for design, buying and merchandising personnel.

Depreciation and amortization. Depreciation and amortization expenses include depreciation and amortization on property and equipment.

Rentals. Rentals includes expenses for store leases, including contingent rent, data processing and other equipment rentals and office space leases.

Interest and debt (income) expense, net. Interest and debt (income) expense includes interest, net of interest income from demand deposits and short-term investments and capitalized interest, relating to the Company’s unsecured notes, subordinated debentures and commitment fees and borrowings, if any, under the Company’s credit agreement. Interest and debt expense also includes the amortization of financing costs and interest on finance lease obligations, if any.

Other expense. Other expense includes the interest cost and net actuarial loss components of net periodic benefit costs related to the Company’s unfunded, nonqualified defined benefit plan and charges related to the write off of certain deferred financing fees in connection with the amendment and extension of the Company's secured revolving credit facility, if any.

Gain on disposal of assets. Gain on disposal of assets includes the net gain or loss on the sale or disposal of property and equipment, as well as gains from insurance proceeds in excess of the cost basis of insured assets, if any.

Seasonality

Our business, like many other retailers, is subject to seasonal influences, with a significant portion of sales and income typically realized during the last quarter of our fiscal year due to the holiday season. Because of the seasonality of our business, results from any quarter are not necessarily indicative of the results that may be achieved for a full fiscal year.

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RESULTS OF OPERATIONS

The following table sets forth the results of operations as a percentage of net sales for the periods indicated (percentages may not foot due to rounding):


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Service charges and other income	1.5		1.7		1.3		1.6

	101.5		101.7		101.3		101.6

Cost of sales	63.4		62.4		59.7		58.8
Selling, general and administrative expenses	28.7		29.1		28.1		28.3
Depreciation and amortization	3.0		3.1		2.9		3.0
Rentals	0.3		0.3		0.3		0.3
Interest and debt (income) expense, net	(0.1)		(0.3)		(0.1)		(0.2)
Other expense	0.3		0.4		0.4		0.4
Gain on disposal of assets	(0.3)		0.0		(0.2)		0.0

Income before income taxes	6.2		6.5		10.1		10.9
Income taxes	1.4		1.5		2.4		2.5

Net income	4.8	%	5.0	%	7.8	%	8.4	%

Net Sales


	Three Months Ended
	August 2,		August 3,
(in thousands of dollars)	2025		2024		$ Change
Net sales:
Retail operations segment	$	1,446,843	$	1,426,431	$	20,412
Construction segment		66,987		63,507		3,480
Total net sales	$	1,513,830	$	1,489,938	$	23,892

The percent change by segment and product category in the Company’s sales for the three months ended August 2, 2025 compared to the three months ended August 3, 2024 as well as the sales percentage by segment and product category to total net sales for the three months ended August 2, 2025 are as follows:


	% Change		% of
	2025 - 2024		Net Sales
Retail operations segment
Cosmetics	(0.8)	%	15	%
Ladies’ apparel	1.5		22
Ladies’ accessories and lingerie	3.2		15
Juniors’ and children’s apparel	6.0		8
Men’s apparel and accessories	0.6		20
Shoes	1.3		13
Home and furniture	(2.4)		3
			96
Construction segment	5.5		4
Total			100	%

Net sales from the retail operations segment increased $20.4 million, or approximately 1%, and sales in comparable stores increased approximately 1% during the three months ended August 2, 2025 compared to the three months ended

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August 3, 2024. Sales in juniors’ and children’s apparel increased significantly. Sales in ladies’ accessories and lingerie and ladies’ apparel increased moderately. Sales in shoes and men’s apparel and accessories increased slightly. Sales in cosmetics decreased slightly while sales in home and furniture decreased moderately.

The number of sales transactions decreased 2% for the three months ended August 2, 2025 compared to the three months ended August 3, 2024, while the average dollars per sales transaction increased 3%.

We recorded a return asset of $11.0 million and $11.5 million and an allowance for sales returns of $18.8 million and $20.1 million as of August 2, 2025 and August 3, 2024, respectively.

During the three months ended August 2, 2025, net sales from the construction segment increased $3.5 million, or approximately 5%, compared to the three months ended August 3, 2024 due to an increase in construction activity. The remaining performance obligations related to executed construction contracts totaled $129.5 million as of August 2, 2025, decreasing approximately 36% from February 1, 2025 and decreasing approximately 45% from August 3, 2024. We expect these remaining performance obligations to be satisfied over the next nine to eighteen months.


	Six Months Ended
	August 2,		August 3,
(in thousands of dollars)	2025		2024		$ Change
Net sales:
Retail operations segment	$	2,914,780	$	2,919,074	$	(4,294)
Construction segment		127,913		119,915		7,998
Total net sales	$	3,042,693	$	3,038,989	$	3,704

The percent change by segment and product category in the Company’s sales for the six months ended August 2, 2025 compared to the six months ended August 3, 2024 as well as the sales percentage by segment and product category to total net sales for the six months ended August 2, 2025 are as follows:


	% Change		% of
	2025 - 2024		Net Sales
Retail operations segment
Cosmetics	(1.7)	%	15	%
Ladies’ apparel	(1.0)		22
Ladies’ accessories and lingerie	1.6		14
Juniors’ and children’s apparel	4.4		9
Men’s apparel and accessories	0.4		19
Shoes	(1.6)		14
Home and furniture	(3.6)		3
			96
Construction segment	6.7		4
Total			100	%

Net sales from the retail operations segment decreased $4.3 million during the six months ended August 2, 2025 compared to the six months ended August 3, 2024, remaining essentially flat as a percentage of the prior period sales in both total and comparable stores. Sales in home and furniture, cosmetics and shoes decreased moderately, while sales in ladies’ apparel decreased slightly. Sales in men’s apparel and accessories remained essentially flat, while sales in ladies’ accessories and lingerie and juniors’ and children’s apparel increased moderately.

The number of sales transactions decreased 2% for the six months ended August 2, 2025 compared to the six months ended August 3, 2024, while the average dollars per sales transaction increased 2%.

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Storewide sales penetration of exclusive brand merchandise for the six months ended August 2, 2025 and August 3, 2024 was 23.4%.

During the six months ended August 2, 2025, net sales from the construction segment increased $8.0 million, or approximately 7%, compared to the six months ended August 3, 2024 due to an increase in construction activity.

Service Charges and Other Income


									Three		Six
	Three Months Ended				Six Months Ended				Months		Months
	August 2,		August 3,		August 2,		August 3,		$ Change		$ Change
(in thousands of dollars)	2025		2024		2025		2024		2025 - 2024		2025 - 2024
Service charges and other income:
Retail operations segment
Income from the Citibank Alliance and former Wells Fargo Alliance	$	11,298	$	12,722	$	17,170	$	24,357	$	(1,424)	$	(7,187)
Shipping and handling income		8,265		8,665		16,326		17,633		(400)		(1,307)
Other		2,577		3,294		6,726		6,350		(717)		376
		22,140		24,681		40,222		48,340		(2,541)		(8,118)
Construction segment		33		27		59		126		6		(67)
Total service charges and other income	$	22,173	$	24,708	$	40,281	$	48,466	$	(2,535)	$	(8,185)

Service charges and other income includes the income from the Citibank Alliance and former Wells Fargo Alliance. Income from the alliances decreased $1.4 million for the three months ended August 2, 2025 compared to August 3, 2024, primarily from decreases in finance charges and late fees mainly resulting from lower average net receivables. Income from the alliances decreased $7.2 million for the six months ended August 2, 2025 compared to August 3, 2024, primarily from (a) decreases in finance charges and late fees mainly resulting from lower average net receivables and (b) increases in credit losses.

While future cash flows under the Citibank Alliance are difficult to predict, the Company expects income from this new alliance to initially be less than historical earnings from the Wells Fargo Alliance. The extent to which future cash flows will vary over the term of the new program from historical cash flows cannot be reasonably estimated at this time.

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Gross Margin


	August 2,		August 3,
(in thousands of dollars)	2025		2024		$ Change		% Change
Gross margin:
Three months ended
Retail operations segment	$	550,925	$	557,198	$	(6,273)	(1.1)	%
Construction segment		3,599		2,409		1,190	49.4
Total gross margin	$	554,524	$	559,607	$	(5,083)	(0.9)	%

Six months ended
Retail operations segment	$	1,219,190	$	1,246,383	$	(27,193)	(2.2)	%
Construction segment		6,506		4,450		2,056	46.2
Total gross margin	$	1,225,696	$	1,250,833	$	(25,137)	(2.0)	%


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
Gross margin as a percentage of segment net sales:
Retail operations segment	38.1	%	39.1	%	41.8	%	42.7	%
Construction segment	5.4		3.8		5.1		3.7
Total gross margin as a percentage of net sales	36.6		37.6		40.3		41.2

Gross margin, as a percentage of sales, decreased to 36.6% from 37.6% during the three months ended August 2, 2025 compared to the three months ended August 3, 2024.

Gross margin from retail operations, as a percentage of sales, decreased to 38.1% from 39.1% during the three months ended August 2, 2025 compared to the three months ended August 3, 2024. Gross margin decreased significantly in ladies’ apparel and decreased slightly in men’s apparel and accessories. Gross margin was essentially flat in juniors’ and children’s apparel, cosmetics and home and furniture. Gross margin increased slightly in ladies’ accessories and lingerie and increased moderately in shoes.

Gross margin, as a percentage of sales, decreased to 40.3% from 41.2% during the six months ended August 2, 2025 compared to the six months ended August 3, 2024.

Gross margin from retail operations, as a percentage of sales, decreased to 41.8% from 42.7% during the six months ended August 2, 2025 compared to the six months ended August 3, 2024. Gross margin decreased moderately in ladies’ apparel and decreased slightly in men’s apparel and accessories and juniors’ and children’s apparel. Gross margin was essentially unchanged in all other product categories.

Total inventory increased 2% at August 2, 2025 compared to August 3, 2024. A 1% change in the dollar amount of markdowns would have impacted net income by approximately $2 million and $4 million for the three and six months ended August 2, 2025, respectively.

The Company is closely monitoring inflation and potential trade restrictions, including tariffs, which pose a risk to our operations. The extent of the impact on the Company's financial performance will depend on the effectiveness of our ongoing initiatives to manage these fluctuating costs.

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Selling, General and Administrative Expenses (“SG&A”)


	August 2,		August 3,
(in thousands of dollars)	2025		2024		$ Change		% Change
SG&A:
Three months ended
Retail operations segment	$	431,751	$	430,850	$	901	0.2	%
Construction segment		2,414		2,809		(395)	(14.1)
Total SG&A	$	434,165	$	433,659	$	506	0.1	%

Six months ended
Retail operations segment	$	851,266	$	854,856	$	(3,590)	(0.4)	%
Construction segment		4,589		5,477		(888)	(16.2)
Total SG&A	$	855,855	$	860,333	$	(4,478)	(0.5)	%


	Three Months Ended				Six Months Ended
	August 2,		August 3,		August 2,		August 3,
	2025		2024		2025		2024
SG&A as a percentage of segment net sales:
Retail operations segment	29.8	%	30.2	%	29.2	%	29.3	%
Construction segment	3.6		4.4		3.6		4.6
Total SG&A as a percentage of net sales	28.7		29.1		28.1		28.3

SG&A decreased to 28.7% of sales during the three months ended August 2, 2025 from 29.1% of sales during the three months ended August 3, 2024, while increasing $0.5 million in total dollars. SG&A from retail operations decreased to 29.8% of sales for the three months ended August 2, 2025 from 30.2% of sales for the three months ended August 3, 2024, while increasing $0.9 million in total dollars.

During the three months ended August 2, 2025 and August 3, 2024, payroll and payroll-related expenses were $303.5 million and $304.3 million, respectively, decreasing $0.8 million. This decrease was offset by increases in various other expense categories.

SG&A decreased to 28.1% of sales during the six months ended August 2, 2025 from 28.3% of sales during the six months ended August 3, 2024, a decrease of $4.5 million in total dollars. SG&A from retail operations decreased to 29.2% of sales for the six months ended August 2, 2025 from 29.3% of sales for the six months ended August 3, 2024, a decrease of $3.6 million in total dollars.

During the six months ended August 2, 2025 and August 3, 2024, payroll and payroll-related expenses were $601.4 million and $606.5 million, respectively, decreasing $5.1 million.

The Company plans to continue its focus of aligning expenses with sales performance.

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Interest and Debt (Income) Expense, Net

DILLARD'S, INC. 10-Q