DILLARD'S, INC. Segments Disclosure
2. Business Segments
The Company operates in two reportable segments: the operation of retail department stores and a general contracting construction company.
For the Company’s retail operations reportable 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. The Company’s operating segments are aggregated for financial reporting purposes because they 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 operating segments 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:
Fiscal 2025 |
| Fiscal 2024 |
| Fiscal 2023 | ||||
Retail operations segment: | |
| |
| |
| ||
Cosmetics | 16 | % | 16 | % | 16 | % | ||
Ladies’ apparel | 20 |
| 20 |
| 20 | |||
Ladies’ accessories and lingerie | 14 |
| 14 |
| 14 | |||
Juniors’ and children’s apparel | 9 |
| 9 |
| 9 | |||
Men’s apparel and accessories | 19 |
| 19 |
| 19 | |||
Shoes | 14 |
| 14 |
| 14 | |||
Home and furniture | 4 |
| 4 |
| 4 | |||
96 |
| 96 |
| 96 | ||||
Construction segment | 4 |
| 4 |
| 4 | |||
Total | 100 | % | 100 | % | 100 | % | ||
The following tables summarize certain segment information, including the reconciliation of those items to the Company’s consolidated operations.
Fiscal 2025 | |||||||||||
(in thousands of dollars) | Retail Operations | Construction | Consolidated | ||||||||
Net sales from customers | $ | 6,231,533 | $ | 268,740 | $ | 6,500,273 | |||||
Elimination of intersegment revenues | - | (26,650) | (26,650) | ||||||||
Net sales from external customers | 6,231,533 | 242,090 | 6,473,623 | ||||||||
Reconciliation of revenue | |||||||||||
Service charges and other income | 89,594 | 119 | 89,713 | ||||||||
Total net sales and service charges and other income | 6,321,127 | 242,209 | 6,563,336 | ||||||||
Less: (a) | |||||||||||
Cost of sales | 3,687,198 | 229,664 | 3,916,862 | ||||||||
Payroll expense (b) | 1,100,993 | 7,050 | 1,108,043 | ||||||||
Depreciation and amortization | 179,024 | 317 | 179,341 | ||||||||
Rentals | 19,009 | 214 | 19,223 | ||||||||
Interest and investment income | (46,194) | (1,018) | (47,212) | ||||||||
Interest and debt expense | 40,982 | - | 40,982 | ||||||||
Other segment items (c) | 649,129 | 2,488 | 651,617 | ||||||||
Income before income taxes and equity in earnings of joint ventures | $ | 690,986 | $ | 3,494 | 694,480 | ||||||
Income taxes | 124,700 | ||||||||||
Equity in earnings of joint ventures | 407 | ||||||||||
Net income | $ | 570,187 | |||||||||
Gross margin (d) | $ | 2,544,335 | $ | 12,426 | $ | 2,556,761 | |||||
Gross margin percentage | 40.8 | % | 5.1 | % | 39.5 | % | |||||
Total assets | $ | 3,439,436 | $ | 65,587 | $ | 3,505,023 | |||||
Capital expenditures | $ | 92,659 | $ | 723 | $ | 93,382 | |||||
| (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 SG&A items 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. |
Fiscal 2024 | |||||||||||
(in thousands of dollars) | Retail Operations | Construction | Consolidated | ||||||||
Net sales from customers | $ | 6,218,525 | $ | 295,218 | $ | 6,513,743 | |||||
Elimination of intersegment revenues | - | (31,107) | (31,107) | ||||||||
Net sales from external customers | 6,218,525 | 264,111 | 6,482,636 | ||||||||
Reconciliation of revenue | |||||||||||
Service charges and other income | 107,398 | 197 | 107,595 | ||||||||
Total net sales and service charges and other income | 6,325,923 | 264,308 | 6,590,231 | ||||||||
Less: (a) | |||||||||||
Cost of sales | 3,667,860 | 251,689 | 3,919,549 | ||||||||
Payroll expense (b) | 1,087,360 | 7,338 | 1,094,698 | ||||||||
Depreciation and amortization | 177,498 | 369 | 177,867 | ||||||||
Rentals | 21,199 | 220 | 21,419 | ||||||||
Interest and investment income | (52,679) | (890) | (53,569) | ||||||||
Interest and debt expense | 39,874 | - | 39,874 | ||||||||
Other segment items (c) | 657,736 | 2,956 | 660,692 | ||||||||
Income before income taxes and equity in earnings of joint ventures | $ | 727,075 | $ | 2,626 | 729,701 | ||||||
Income taxes | 136,225 | ||||||||||
Equity in earnings of joint ventures | - | ||||||||||
Net income | $ | 593,476 | |||||||||
Gross margin (d) | $ | 2,550,665 | $ | 12,422 | $ | 2,563,087 | |||||
Gross margin percentage | 41.0 | % | 4.7 | % | 39.5 | % | |||||
Total assets | $ | 3,453,795 | $ | 77,259 | $ | 3,531,054 | |||||
Capital expenditures | $ | 104,311 | $ | 241 | $ | 104,552 | |||||
| (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 SG&A items 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. |
Fiscal 2023 | ||||||||||
(in thousands of dollars) | Retail Operations | Construction | Consolidated | |||||||
Net sales from customers | $ | 6,479,580 | $ | 320,795 | $ | 6,800,375 | ||||
Elimination of intersegment revenues | - | (48,322) | (48,322) | |||||||
Net sales from external customers | 6,479,580 | 272,473 | 6,752,053 | |||||||
Reconciliation of revenue | ||||||||||
Service charges and other income | 122,080 | 287 | 122,367 | |||||||
Total net sales and service charges and other income | 6,601,660 | 272,760 | 6,874,420 | |||||||
Less: (a) | ||||||||||
Cost of sales | 3,770,509 | 260,599 | 4,031,108 | |||||||
Payroll expense (b) | 1,079,215 | 7,049 | 1,086,264 | |||||||
Depreciation and amortization | 179,315 | 258 | 179,573 | |||||||
Rentals | 21,353 | 216 | 21,569 | |||||||
Interest and investment income | (44,567) | (673) | (45,240) | |||||||
Interest and debt expense | 40,640 | - | 40,640 | |||||||
Other segment items (c) | 641,339 | 2,550 | 643,889 | |||||||
Income before income taxes and equity in earnings of joint ventures | $ | 913,856 | $ | 2,761 | 916,617 | |||||
Income taxes | 177,770 | |||||||||
Equity in earnings of joint ventures | - | |||||||||
Net income | $ | 738,847 | ||||||||
Gross margin (d) | $ | 2,709,071 | $ | 11,874 | $ | 2,720,945 | ||||
Gross margin percentage | 41.8 | % | 4.4 | % | 40.3 | % | ||||
Total assets | $ | 3,377,632 | $ | 71,274 | $ | 3,448,906 | ||||
Capital expenditures | $ | 132,599 | $ | 345 | $ | 132,944 | ||||
| (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 SG&A items 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. |
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 liability is included in other liabilities on the consolidated balance sheets. Our retail operations segment contract liabilities are as follows:
Retail | ||||||||
January 31, | | February 1, | | February 3, | ||||
(in thousands of dollars) | 2026 | | 2025 | | 2024 | |||
Contract liabilities | $ | 78,386 | $ | 76,667 | $ | 85,227 | ||
During fiscal 2025 and 2024, the Company recorded $46.0 million and $56.3 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 in the consolidated balance sheets, respectively. The amounts included in the consolidated balance sheets are as follows:
Construction | | | ||||||
January 31, | | February 1, | | February 3, | ||||
(in thousands of dollars) | 2026 | 2025 | 2024 | |||||
Accounts receivable | $ | 30,598 | $ | 46,646 | $ | 47,240 | ||
Costs and estimated earnings in excess of billings on uncompleted contracts |
| 2,018 |
| 3,913 |
| 1,695 | ||
Billings in excess of costs and estimated earnings on uncompleted contracts |
| 4,493 |
| 6,983 |
| 6,307 | ||
During fiscal 2025 and 2024, the Company recorded $6.8 million and $6.0 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 $140.8 million and $202.8 million at January 31, 2026 and February 1, 2025, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Mar 27, 2026 | Showing above |
| 2025 | Mar 28, 2025 | |
| 2024 | Mar 29, 2024 | |
| 2023 | Mar 27, 2023 | |
| 2022 | Mar 29, 2022 | |
| 2021 | Mar 29, 2021 | |
| 2020 | Mar 31, 2020 | |
| 2019 | Mar 29, 2019 | |
| 2018 | Mar 30, 2018 | |
| 2017 | Mar 24, 2017 | |
| 2016 | Mar 23, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.