1. Macy's for the South and Midwest.

2. A regional, slightly more upscale Kohl's.

• Fashion Apparel: Clothing for women, men, and children sold through its department stores.
• Accessories: Various items such as jewelry, handbags, shoes, and other adornments for personal use.
• Cosmetics: Beauty products including makeup, skincare, and fragrances.
• Home Furnishings: Merchandise for decorating and equipping homes, such as furniture, decor, and kitchenware.
• Other Consumer Goods: A broad category encompassing various other retail products available in its department stores.
• General Contracting Construction Services: Building and construction activities provided by the company as a contractor.

Dillard's (DDS) sells primarily to individual consumers rather than other companies. Based on its retail department store model, its major customer categories include:

• General Apparel and Accessories Shoppers: This broad category includes individuals and families purchasing fashion apparel for women, men, and children, as well as accessories, footwear, handbags, jewelry, and beauty products for personal use or as everyday gifts.
• Home Furnishings and Decor Shoppers: These customers are individuals buying items for their homes, such as bedding, bath linens, kitchenware, small home appliances, home decor, and other domestic goods.
• Occasional and Gift Shoppers: Customers purchasing items for specific occasions, holidays, or as gifts for others. Dillard's wide range of merchandise makes it a destination for gifts across various categories, from fashion to home goods.

William T. Dillard II, Chairman and Chief Executive Officer

William T. Dillard II is the son of Dillard's founder, William T. Dillard, and has served as Chairman and Chief Executive Officer of Dillard's, Inc. He earned a Bachelor of Business Administration from the University of Arkansas and an M.B.A. from Harvard Business School. Dillard II joined the company's board of directors in 1967, became president and chief operating officer in 1977, assumed the role of chief executive officer in 1998, and was named chairman in 2002. He has been involved in nearly every aspect of the company's operations for over 55 years and was an early adopter of technology, introducing data processing and computerizing purchase orders as early as 1973. He has also served on the boards of Acxiom Corp. since 1988 and Barnes & Noble since 1993. Under his leadership, Dillard's has navigated economic challenges and transformed its retail strategy by focusing on curated, higher-quality brands and expanding e-commerce capabilities.

Chris Johnson, Senior Vice President, Co-Principal Financial Officer

Chris Johnson serves as Senior Vice President and Co-Principal Financial Officer of Dillard's, Inc. He has been in this role since 2015.

Phillip Watts, Senior Vice President, Co-Principal Financial Officer and Principal Accounting Officer

Phillip Watts holds the titles of Senior Vice President, Co-Principal Financial Officer, and Principal Accounting Officer at Dillard's, Inc.

Alex Dillard, President and Director

Alex Dillard, the son of the founder William T. Dillard, is the President of Dillard's, Inc. He has served on the company's Board of Directors since 1975 and has over 50 years of experience in virtually every aspect of Dillard's operations and merchandising. He works closely with the CEO in the day-to-day supervision of the business.

Mike Dillard, Executive Vice President and Director

Mike Dillard, also a son of the company's founder, is an Executive Vice President of Dillard's, Inc. He has been a member of the Board of Directors since 1976 and has spent his entire professional career within the company, heading one of its largest merchandising divisions.

1. Intense Competition and Evolving Retail Landscape: Dillard's operates in a highly competitive retail environment, facing numerous competitors including national and local department stores, specialty retailers, off-price retailers, and online platforms like Amazon. The traditional department store model is experiencing a long-term decline, with consumers increasingly shifting towards value and digital convenience. The company's success depends on its ability to predict and respond to fashion trends and changing customer preferences, including the rapid shift towards online shopping and discount retailers.
2. Economic Conditions and Consumer Spending: Dillard's financial performance is highly sensitive to changes in overall economic conditions that impact consumer confidence and spending, especially in the regions where it operates. Economic uncertainty and fluctuations can lead to decreased sales and profitability, as the company has faced weak consumer sentiment. The ability to pass on cost increases to customers also remains uncertain amidst economic and geopolitical factors like inflation.
3. Slowing Sales, Profitability Concerns, and Inventory Management: Dillard's has experienced challenges with slowing earnings, limited top-line growth, and declining sales performance. Recent reports indicate a decline in comparable store sales and a projected drop in revenue by analysts. Effective inventory management is a critical weakness in the department store sector; Dillard's has shown signs of potential overstocking, which can lead to markdowns and reduced profitability.

The aggressive expansion of online-only retailers specializing in fast fashion and direct-to-consumer (DTC) models presents a clear emerging threat to Dillard's. This includes:

• Online Fast Fashion Giants: Companies like Shein, Temu, and Boohoo leverage highly efficient global supply chains, rapid trend replication, and sophisticated digital marketing to offer vast assortments of affordable, trendy apparel and accessories directly to consumers online. This business model fundamentally challenges Dillard's traditional retail approach by offering extreme convenience, competitive pricing, and constantly refreshed inventory at a speed and scale difficult for department stores to match, thereby shifting consumer expectations and market share.

• Accelerated Shift to Direct-to-Consumer (DTC) by Major Brands: An increasing number of established and emerging brands across apparel, cosmetics, and home goods are investing heavily in and prioritizing their own online retail channels (and sometimes dedicated physical stores). This trend allows brands to capture higher margins, control their customer experience, and build direct relationships, effectively bypassing traditional department stores like Dillard's. This disintermediation erodes Dillard's role as a primary distribution channel, diminishes its unique product offerings and selection advantage, and can lead to reduced foot traffic and online sales.

The addressable markets for Dillard's main products and services in the U.S. are as follows:

• Women's Fashion Apparel: The U.S. women's apparel market was projected to be USD 291.57 billion in 2023 and is expected to reach USD 390.49 billion by 2032.
• Men's Fashion Apparel: The U.S. menswear market is anticipated to reach USD 154.5 billion in 2025.
• Children's Fashion Apparel: The U.S. kids' apparel market is projected to grow from USD 49.01 billion in 2025 to USD 69.76 billion by 2035.
• Accessories: The U.S. fashion accessories market was valued at USD 223.2 billion in 2024 and is projected to reach USD 477.4 billion by 2034.
• Cosmetics: The U.S. cosmetics market size was estimated at USD 62.97 billion in 2023.
• Home Furnishings: The U.S. home furnishing market generated a revenue of USD 252.27 billion in 2024 and is expected to reach USD 412.14 billion by 2030.
• General Contracting Construction: The overall U.S. construction market, which includes general contracting activities, was valued at USD 2.2 trillion in 2025.

Expected Revenue Growth Drivers for Dillard's (DDS)

Over the next 2-3 years, Dillard's (DDS) is expected to focus on several key areas to drive or sustain future revenue growth, amidst a generally challenging retail environment:

1. E-commerce Expansion and Omnichannel Presence: Dillard's has an opportunity to expand its e-commerce platform and enhance its omnichannel presence by investing in digital capabilities to integrate online and offline shopping experiences. This strategy aims to capture a larger share of the growing online market.
2. Strategic Store Optimization and Targeted New Store Openings: The company plans to strategically optimize its store portfolio, which includes closing underperforming locations, remodeling existing stores, and opening new ones in high-potential markets. For instance, a new 160,000 square-foot Dillard's location is planned to open in March 2026 at The Mall at Fairfield Commons in Beavercreek, Ohio.
3. Growth and Leverage of Clearance Centers: Dillard's operates dedicated clearance centers that have demonstrated success as a high-performing asset, appealing to value-conscious consumers. These centers experienced a 7.5% rise in traffic between January and August 2025, indicating their potential as a significant revenue contributor and a model for future expansion.
4. Focus on High-Performing Product Categories and Improved Merchandising: While facing headwinds, Dillard's has shown strength in specific categories, such as activewear, and has achieved high retail gross margins through improved merchandising and efficient inventory control. Sustaining and expanding on these efforts in product selection and management can support revenue performance.

Share Repurchases

• In May 2023, Dillard's authorized a new share repurchase program for up to $500 million of its Class A Common Stock. This authorization followed the completion of its previous share repurchase program.
• During the 39 weeks ended November 1, 2025, the company repurchased approximately 300,000 shares of Class A Common Stock for $107.8 million. As of that date, $165.2 million remained authorized under the May 2023 program.
• The company completed a $334.79 million buyback program.

Share Issuance

• The number of shares outstanding for Dillard's has consistently declined over the past few years, indicating share repurchases rather than issuances. Annual shares outstanding were 17.135 million in 2023, 16.23 million in 2024, and 15.904 million in 2025.

Capital Expenditures

• Dillard's projects a capital expenditure of $130 million for 2026, aimed at enhancing growth and operational efficiency.
• This projected capital expenditure for 2026 includes funding for projects such as a new 160,000 square foot store in Beavercreek, Ohio.
• Actual capital expenditures were $93 million for fiscal year 2025, $132.944 million in 2024, and $120.105 million in 2023.