DDS vs M: How Dillard's and Macy'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: M 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 M 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 M 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

Macy's, Inc. is a US retail company built around three banners: Macy's, the mid-tier department store that carries the company's name; Bloomingdale's, a higher-end luxury chain; and Bluemercury, a specialty beauty and cosmetics retailer. It sells apparel, accessories, cosmetics, home goods, and other merchandise through hundreds of stores and its e-commerce sites. Beyond retail, Macy's owns a substantial real-estate portfolio, and the value of that property has long been part of the investment debate around the stock.

Full M 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.
• M drivers: Reimagined stores and the turnaround plan; Bloomingdale's and Bluemercury as growth banners.

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 M, the central risk is structural: department stores have lost share for years to online sellers, off-price chains, and direct-to-consumer brands, and a turnaround does not reverse that secular pressure.

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick DDS if you believe its drivers more; M 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 M 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.

M. Figures are approximate and tied to the asOf date; verify live numbers before acting. Macy's trades at a low earnings multiple typical of legacy retail, which can look cheap but reflects genuine doubts about long-term growth. The turnaround has shown early progress, yet the stock's re-rating depends on management proving the reimagined model works at scale, not just in a pilot group. Treat any single quarter's comp as a data point, not a trend.

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; M shows business model Department-store retail across Macy's, Bloomingdale's, and Bluemercury banners, plus a large owned-real-estate portfolio, recent results Q1 fiscal 2026 delivered ~3% comparable sales growth, the strongest first-quarter comp in four years, with an EPS beat, full-year guidance Raised outlook to net sales of roughly $21.5 to $21.75 billion for fiscal 2026, valuation style Trades as a value-and-income turnaround name, well off multi-year highs.

DDS and M 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 M exposure against your real portfolio. It is not an investment adviser.