What Dillard's, Inc. told the SEC could break it.

Tariffs on goods sourced from foreign countries, including China, could raise Dillard's and its vendors' cost of goods and adversely affect profitability; inflation and changing trade restrictions are flagged as an operational risk.

“Since 2018, the United States has imposed additional tariffs on certain items sourced from foreign countries, including China, and has modified, withdrawn from and renegotiated some of its trade agreements with foreign countries. Additional actions, including the imposition or increase of tariffs, could negatively impact our ability and the ability of our third-party vendors and suppliers to source products from foreign jurisdictions and could lead to an increase in the cost of goods and adversely affect our profitability.”

Dillard's stores are located primarily in shopping malls and open-air centers across the southwest, southeast and midwest U.S., concentrating exposure to those regional economies.

“Customers may visit us in person at any of our retail stores located primarily in shopping malls and open-air centers throughout the southwest, southeast and midwest regions of the United States.”

Dillard's earns a material share of income from the Citibank private-label credit alliance ($39.6M in FY2025, down from $54.1M and $67.2M); a further decline in this income would hurt operating results and cash flows.

“If the income or cash flow that the Company receives from the Citibank Alliance decreases, our operating results and cash flows could be adversely affected.”