The news: Each of Dillard’s merchandise categories posted YoY sales growth in Q1 2026, with particularly strong gains in home and furniture, women’s accessories, lingerie, and shoes.

The numbers:

• Earnings per share were $16.04, up 54.4% YoY and well ahead of the $10.13 expected, though $5.10 of EPS came from a settlement over card swipe fees.
• Total retail sales for the quarter ended May 2 were $1.52 billion, up 3.4% YoY.
• Comparable sales rose 3%.
• Retail gross margin reached 45.8%, up from 45.5% a year earlier, driven by gains in shoes and modest growth in accessories and lingerie, which offset declines in apparel and home.

Implications for retailers: Dillard’s performance stands out given its recent softness—the chain posted declines in sales, comps, and profitability in Q4—and the broader pressure on department stores, where sales are down 3.3% YoY through the first four months of the year.

The gains highlight the importance of strong merchandising in a challenging environment. By leaning into on-trend assortments and eye-catching displays, Dillard’s is giving shoppers a reason to browse. Its recent rollout of Mahjong displays—complete with sets, racks, mats, and accessories—shows how tapping into emerging trends can drive incremental spending.

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