Dillard’s reports Q2 earnings growth driven by tariff refunds

Dillard’s, Inc. reported a rise in second-quarter earnings for the period ending August 1, 2026. Net income reached $97.7 million, or $6.25 per share, compared to $72.8 million, or $4.66 per share, in the same quarter the previous year.

A significant driver of the increased profitability was $37.2 million in refunds related to International Emergency Economic Powers Act (IEEPA) tariffs. These refunds contributed $28.4 million after tax, or $1.82 per share, and helped increase the retail gross margin to 40.9 percent of sales, up from 38.1 percent in the prior-year quarter.

Total retail sales grew by 1 percent, with gains in ladies’ accessories and lingerie being partially offset by declines in children’s, juniors’, and ladies’ apparel. The company ended the quarter with over $1.2 billion in combined cash and short-term investments after paying down $96 million in debt. Dillard’s stated it does not expect additional significant IEEPA tariff refunds in the future.