DDS vs KSS: How Dillard's and Kohl's Compare (2026)

Same yardstick, side by side (as of August 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Reading it: KSS is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. DDS and KSS share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined DDS and KSS exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

Dillard's sells apparel, cosmetics, footwear and home goods through about 272 stores (roughly 28 of them clearance centers) in about 30 states, concentrated in Texas, Florida and the rest of the Sun Belt, plus dillards.com. Total selling space is around ~46 million square feet, and unlike most mall-anchor peers Dillard's owns the large majority of that space outright rather than leasing it. A second, unglamorous segment is CDI Contractors, a general contracting business that builds and remodels Dillard's own stores and takes third-party commercial work. Fiscal 2025, the 52 weeks ended January 31, 2026, produced net sales of about ~$6.47 billion and net income of about ~$570 million, or roughly ~$36.42 per share.

Full DDS guide

Kohl's Corporation operates a chain of roughly 1,150 department stores across most of the United States, most of them in suburban strip centers rather than enclosed malls. It sells moderately priced apparel, footwear, accessories, home goods, and beauty products, mixing national brands with a meaningful slate of proprietary and exclusive labels that carry higher margins. The company makes money on retail merchandise sales both in store and online (digital reached about 26% of net sales in early 2026), and it also earns fee income from its co-branded Kohl's Card credit program. Loyalty mechanics like Kohl's Cash and Kohl's Rewards are central to how it drives repeat traffic.

Full KSS guide

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

• DDS drivers: The shrinking share count; Merchandise margin and inventory discipline.
• KSS drivers: Sephora beauty as a traffic engine; Owned real estate and asset value.

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: Department stores are in secular decline, and Dillard's is not adding stores, so any growth has to come from comparable sales and margin rather than square footage. For KSS, the core bear case is secular: department stores have been losing share for years to off-price chains, mass merchants, and online retail, and Kohl's comparable sales have been negative for an extended stretch even as recent declines narrowed.

Pick DDS if you believe its drivers more; KSS if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the DDS and KSS guides.

DDS. The trailing multiple near ~15x is low for the S&P 500 and normal for a department store, but the trailing earnings include the interchange settlement gain, so the forward multiple sits closer to ~18x. Fiscal 2025 net income of about ~$570 million was down roughly ~3.9% from the prior year even as EPS rose, which is the buyback at work. The next scheduled report is August 13, 2026, covering the quarter ended around August 1.

KSS. These figures are approximate and tied to the asOf date; verify current numbers before acting. The central valuation debate is whether Kohl's is cheap for a reason: a low P/E and a high dividend yield can signal either deep value or a value trap where the market is pricing in continued decline. With thin operating margins and still-negative comparable sales, small swings in either direction move the equity and the dividend's coverage significantly.

Headline figures (approximate, August 2026): DDS shows revenue (ttm) ~$6.6B, up roughly ~0.6%, net income (ttm) ~$657M, diluted eps (ttm) ~$42, trailing p/e ~15x at a ~$612 share price; KSS shows revenue (ttm, approx.) ~$15 billion, q1 fy2026 comparable sales ~-1.1% (best in 4+ years), fy2026 adj. operating margin guide ~2.8% to 3.4%, dividend (annualized) ~$0.50 per share.

DDS and KSS are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined DDS and KSS exposure against your real portfolio. It is not an investment adviser.