Shares of Dillard’s Inc. have soared more than 1,500% since April 2020. The company’s market value is similar to that of Macy’s Inc., even though Dillard’s has less than one-third of Macy’s annual revenue.
The Little Rock, Ark., retailer has about 280 stores, most of which are in the South, and is one of the few department-store chains still run by its founding family.
The chief executive and president—both sons of the company’s founder—visit stores weekly and know down to the item what is selling best in each location, people who have worked with them said. They have an old-school shopkeeper mentality that combines smart merchandising with shrewd financial management, according to the people and analysts.
The Dillard family has instilled a sense of loyalty among staff, many of whom have been with the company for decades. Employees are encouraged to give customers personalized attention, which in turn keeps shoppers coming back, the people said.
The skyrocketing share price plus two special $15-a-share dividends paid in December 2021 and January 2023 have enriched rank-and-file employees and swelled the value of the family’s holdings in the company. Stock buybacks have helped make the remaining shares more valuable.
