Dillard's (DDS) risk factors, 2025 10-K

Dillard's's 2025 10-K lists 24 risk factors in 9 groups. No earlier 10-K is on file to compare against, so the most company-specific risks are read out below.

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Risk factors listed
249 groups
Section length
7k wordsItem 1A

What dominates the section

  • Retail performance depends heavily on seasonal demand, fashion execution, store locations, weather, and consumer spending.
  • Distinctive exposures include vendor allowances, foreign sourcing, private-label brands, private-label credit cards, and construction accounting.
  • Operations also depend on distribution centers, information systems, employees, and substantial owned and leased real estate.

The risks most specific to Dillard's

  • Risks Related to Retail Operations

    A shutdown of, or disruption in, any of the Company’s distribution or fulfillment centers would have an adverse effect on the Company’s business and operations

    A shutdown or disruption at a distribution or fulfillment center could interrupt merchandise receiving and distribution across the business.

  • Risks Related to Retail Operations

    Ownership and leasing of significant amounts of real estate exposes us to possible liabilities and losses

    Owning and leasing all store properties exposes Dillard’s to falling real estate values, higher operating costs, and location-related losses.

  • Risks Related to Retail Operations

    Variations in the amount of vendor allowances received could adversely impact our operating results

    Reduced vendor allowances, especially payroll reimbursements, could raise costs or reduce staffing and sales.

  • Risks Related to Retail Operations

    Our profitability may be adversely impacted by weather conditions

    Unseasonable weather could leave Dillard’s with inventory that no longer matches customer needs, reducing profitability.

  • Risks Related to our Brand and Product Offerings

    Risks associated with our private label merchandise program could adversely affect our business

    Dillard’s is expanding exclusive brands including Antonio Melani, Gianni Bini, GB, Roundtree & Yorke, and Daniel Cremieux, creating private-label execution risks.

  • Risks Related to Material Sourcing and Supply

    The Company and third-party suppliers on whom we rely source a significant portion of the merchandise we sell from foreign countries, which exposes us to certain risks that include political and economic conditions and supply chain disruptions

    Foreign sourcing exposes merchandise supply and costs to tariffs, political conditions, and international supply-chain disruptions, including China-related trade measures.

  • Risks Related to our Long-Term Marketing and Servicing Alliance

    Reductions in the income and cash flow from our long-term marketing and servicing alliance related to the private label credit cards could impact operating results and cash flows

    The new Citibank private-label credit-card alliance replaced Wells Fargo, and reduced related income or cash flow could hurt results.

  • Risks Related to Information Technology and Information Security Risks

    A significant disruption in our information technology systems and network and our inability to adequately maintain and update those systems could materially adversely affect our operations and financial condition

    Failures or disruptions in point-of-sale, website, transaction-processing, inventory, and other information systems could impair operations and financial condition.

  • Risks Related to Construction Operations

    The cost-to-cost method of accounting that we use to recognize contract revenues for our construction segment may result in material adjustments, which could result in a credit or a charge against our earnings

    Construction-segment contract revenue estimates use the cost-to-cost method, so revised costs can produce material earnings charges or credits.

  • Risks Related to Employees

    The Company depends on its ability to attract and retain quality employees, and failure to do so could adversely affect our ability to execute our business strategy and our operating results

    High employee turnover and labor-market conditions could make it harder and more expensive to staff stores and execute the business strategy.

All 24 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01The risks described in this Item 1A, Risk Factors, of this Annual Report could materially and adversely affect our business, financial condition and results of operations

Risks Related to Retail Operations

  1. 02The retail merchandise business is highly competitive, and that competition could lower our revenues, margins and market share
  2. 03Our business is seasonal, and fluctuations in our revenues during the last quarter of our fiscal year can have a disproportionate effect on our results of operations
  3. 04A shutdown of, or disruption in, any of the Company’s distribution or fulfillment centers would have an adverse effect on the Company’s business and operations
  4. 05Current store locations may become less desirable, and desirable new locations may not be available for a reasonable price, if at all, either of which could adversely affect our results of operations
  5. 06Ownership and leasing of significant amounts of real estate exposes us to possible liabilities and losses
  6. 07Variations in the amount of vendor allowances received could adversely impact our operating results
  7. 08A decrease in cash flows from our operations and constraints to accessing other financing sources could limit our ability to fund our operations, capital projects, interest and debt repayments, stock repurchases and dividends
  8. 09Our profitability may be adversely impacted by weather conditions
  9. 10Natural disasters, climate change, war, acts of violence, acts of terrorism, other armed conflicts, and public health issues may adversely impact our business

Risks Related to Consumer Demand

  1. 11Changes in economic, financial and political conditions, and the resulting impact on consumer confidence and consumer spending, could have an adverse effect on our business and results of operations
  2. 12Our business is dependent upon our ability to accurately predict rapidly changing fashion trends, customer preferences and other fashion-related factors

Risks Related to our Brand and Product Offerings

  1. 13Our failure to protect our reputation could have an adverse effect on our business
  2. 14Risks associated with our private label merchandise program could adversely affect our business

Risks Related to Material Sourcing and Supply

  1. 15Fluctuations in the price of merchandise, raw materials, fuel and labor or their reduced availability could increase our cost of goods and negatively impact our financial results
  2. 16The Company and third-party suppliers on whom we rely source a significant portion of the merchandise we sell from foreign countries, which exposes us to certain risks that include political and economic conditions and supply chain disruptions
  3. 17Failure by third party suppliers to comply with our supplier compliance programs or applicable laws could have a material adverse effect on our business

Risks Related to our Long-Term Marketing and Servicing Alliance

  1. 18Reductions in the income and cash flow from our long-term marketing and servicing alliance related to the private label credit cards could impact operating results and cash flows
  2. 19We are subject to customer payment-related risks that could increase our operating costs, expose us to fraud or theft, subject us to potential liability and potentially disrupt our business operations

Risks Related to Information Technology and Information Security Risks

  1. 20A significant disruption in our information technology systems and network and our inability to adequately maintain and update those systems could materially adversely affect our operations and financial condition

Legal and Compliance Risks

  1. 21Litigation with customers, employees and others could harm our reputation and impact operating results

Risks Related to Construction Operations

  1. 22The cost-to-cost method of accounting that we use to recognize contract revenues for our construction segment may result in material adjustments, which could result in a credit or a charge against our earnings

Risks Related to Employees

  1. 23The Company depends on its ability to attract and retain quality employees, and failure to do so could adversely affect our ability to execute our business strategy and our operating results
  2. 24Increases in employee wages and the cost of employee benefits could impact the Company’s financial results and cash flows

Other Dillard's 10-Ks

  • 2026 10-K risk factors

    24 risks. Dillard's faces heavy risks from Q4 holiday seasonality, supply chain disruptions, and shifting consumer preferences in retail.

    Filed Mar 27, 2026

About this page

Item 1A of the 10-K on EDGAR was split into its risk factors and, where the company's previous 10-K is on file, each heading was matched to last year's and the text compared word for word. The headings are the filing's own. The one-line readings and the overview were written by a language model from the text of the new, dropped, and rewritten risks; they refer to risks by position and cannot misquote a heading.

Dillard's (DDS) Risk Factors: 2025 10-K, What Changed | Gloomberb