Designer Brands Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results

Rhea-AI Summary

Designer Brands (NYSE: DBI) reported fourth-quarter and full-year fiscal 2025 results on March 26, 2026, showing sequential margin improvement amid modest sales declines. Q4 net sales were $713.6 million (flat YoY) with consolidated gross margin at 42.4% (up 280 bps YoY). Full-year net sales were $2.893 billion, down 3.9%, while full-year consolidated gross margin improved to 43.6% (up 90 bps). The company reported a Q4 reported net loss of $20.0 million and FY reported net loss of $8.4 million; adjusted FY net income was $8.3 million. Liquidity: cash $50.9 million, debt $435.0 million. A $0.05 per-share dividend will be paid April 10, 2026. 2026 guidance: EPS $0.28–$0.38, effective tax rate 40%, net sales down 1% to up 1%.

Positive

• Q4 gross margin expanded by 280 basis points
• FY consolidated gross margin up 90 basis points to 43.6%
• Debt reduced from $491.0M to $435.0M (≈11% decline)
• Cash and equivalents increased from $44.8M to $50.9M (≈13.6% gain)
• Dividend declared at $0.05 per share, payable April 10, 2026

Negative

• Q4 reported net loss of $20.0M (loss per diluted share $0.40)
• Full-year reported net loss of $8.4M (loss per diluted share $0.17)
• Total comparable sales declined 4.3% for the fiscal year
• Brand Portfolio net sales fell 9.0% year-over-year

News Market Reaction – DBI

+4.05%

13 alerts

+4.05% News Effect

-25.9% Trough in 12 min

+$11M Valuation Impact

$285.90M Market Cap

1.1x Rel. Volume

On the day this news was published, DBI gained 4.05%, reflecting a moderate positive market reaction. Argus tracked a trough of -25.9% from its starting point during tracking. Our momentum scanner triggered 13 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $11M to the company's valuation, bringing the market cap to $285.90M at that time.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 2025 net sales: $713.6M Q4 2025 gross margin: 42.4% Q4 adjusted net loss: $15.6M +5 more

8 metrics

Q4 2025 net sales $713.6M Fourth quarter 2025 net sales, flat year-over-year

Q4 2025 gross margin 42.4% Gross margin vs 39.6% in Q4 2024

Q4 adjusted net loss $15.6M Fourth quarter 2025 adjusted net loss

FY 2025 net sales $2.9B Full year 2025 net sales, down 3.9% vs 2024

FY 2025 gross margin 43.6% Full year gross margin vs 42.7% in 2024

FY 2025 adjusted net income $8.3M Full year 2025 adjusted net income, EPS $0.16

Year-end 2025 cash $50.9M Cash and cash equivalents at end of 2025

Year-end 2025 debt $435.0M Total debt at end of 2025, down from $491.0M

Market Reality Check

Price: $5.44 Vol: Volume 1,362,806 is 98% a...

high vol

$5.44 Last Close

Volume Volume 1,362,806 is 98% above the 20-day average of 687,109, signaling elevated interest into the earnings release. high

Technical Shares at $5.43 are trading above the 200-day MA of $4.77, reflecting a recovery from prior lows.

Peers on Argus

DBI is up 3.04% while key peers show mixed to negative moves (e.g., RCKY -1.74%,...

DBI is up 3.04% while key peers show mixed to negative moves (e.g., RCKY -1.74%, WEYS -3.38%, FOSL -0.49%). Only FORD is notably positive at +4.23%, indicating DBI’s reaction is more stock-specific than sector-driven.

Previous Earnings Reports

5 past events · Latest: Dec 09 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 09	Q3 2025 earnings	Positive	+48.5%	Strong EPS growth and gross margin expansion despite modest sales decline.
Sep 09	Q2 2025 earnings	Neutral	+5.5%	Mixed quarter with positive EPS but sales and gross profit under pressure.
Jun 10	Q1 2025 earnings	Negative	-18.2%	Sales decline, net loss, margin compression and withdrawal of full-year guidance.
Mar 20	FY 2024 results	Positive	+6.3%	Return to positive Q4 comps, improving margins and ongoing capital returns.
Dec 10	Q3 2024 earnings	Negative	+3.8%	Sales and comps decline with guidance cut despite some category strength.

Pattern Detected

Earnings headlines frequently drove meaningful moves, with mostly positive reactions to stronger profitability and margin trends, but at least one instance where shares rose despite weaker fundamentals.

Recent Company History

Across the last five earnings releases from Dec 2024 through Dec 2025, Designer Brands reported pressured net sales and comps but steadily worked to improve margins and profitability. Q1 2025 brought a net loss and guidance withdrawal, while Q2 and Q3 2025 showed positive EPS and, by Q3, a gross margin expansion of 210 bps. The FY 2024 report highlighted ongoing losses but improving gross margin and shareholder returns via dividends and buybacks. Today’s FY 2025 results and 2026 outlook continue this focus on margins and profit growth.

Historical Comparison

+9.2% avg move · Over the last five earnings releases, DBI’s average 1-day move was about 9.17%, underscoring that it...

earnings

+9.2%

Average Historical Move earnings

Over the last five earnings releases, DBI’s average 1-day move was about 9.17%, underscoring that its results often trigger sizable post-report reactions.

Recent earnings show a shift from sales declines and margin pressure in early 2025 toward stronger gross margins, positive EPS, and tighter guidance by late 2025.

Market Pulse Summary

This announcement details DBI’s Q4 and fiscal 2025 performance, highlighting flat quarterly net sale...

Analysis

This announcement details DBI’s Q4 and fiscal 2025 performance, highlighting flat quarterly net sales, improved gross margins of 42.4% in Q4 and 43.6% for the year, and a shift to positive full-year adjusted net income of $8.3M. Guidance for 2026 targets modest net sales movement and higher EPS, framing profitability as the key focus. In light of prior quarters marked by sales declines and margin work, investors may watch future comps, margin sustainability, leverage trends and execution on cost discipline.

Key Terms

basis points, adjusted operating income, asset-based revolving credit facility, diluted earnings per share, +3 more

7 terms

basis points financial

"Fourth quarter consolidated gross margin increased 280 basis points year-over-year"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

adjusted operating income financial

"Full year adjusted operating income significantly above high end of guidance"

Adjusted operating income is a company's profit from its main activities, excluding certain one-time or unusual costs and gains. It helps investors see how well the business is performing in its normal operations, without distractions from rare events or expenses. This way, they get a clearer picture of the company’s true profitability.

asset-based revolving credit facility financial

"available for borrowings under our senior secured asset-based revolving credit facility"

A loan arrangement where a lender agrees to make funds available up to a set limit that a borrower can draw, repay, and draw again, with the amount available tied to the value of specific assets (like inventory, receivables, or equipment) pledged as collateral. It matters to investors because it provides flexible working capital while limiting risk exposure: the company can fund growth or cover shortfalls quickly, but borrowing capacity can shrink if asset values fall.

diluted earnings per share financial

"adjusted diluted earnings per share of $0.16"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

restricted stock units financial

"in the form of restricted stock units (RSUs) as compensation"

Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.

dividend equivalent rights financial

"she exercised awards covering 17,197 Class A shares, including RSUs and associated dividend equivalents"

Dividend equivalent rights are promises that mirror the cash payments shareholders get from a company’s profits, but they are paid to holders of certain awards (like stock options or restricted stock units) rather than to actual shares. Think of them as a paycheck top‑up that matches dividends while the award is not yet a real stock, and they matter to investors because they add to employee compensation costs and potential share dilution, affecting company profitability and per‑share value.

forward-looking statements regulatory

"Certain statements in this press release may constitute forward-looking statements"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

AI-generated analysis. Not financial advice.

Third consecutive quarter of improved top line rate of change in comparable sales and net sales

Fourth quarter consolidated gross margin increased 280 basis points year-over-year

Full year adjusted operating income significantly above high end of guidance

2026 guidance reflects meaningful growth in profitability

COLUMBUS, Ohio, March 26, 2026 /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financial results for the three months and year ended January 31, 2026.

"Our fourth quarter and fiscal 2025 results reflect disciplined execution as we strengthened the business and delivered sequential improvement across key financial metrics throughout the year," said Doug Howe, Chief Executive Officer. "We ended the year with fourth quarter net sales flat year-over-year and impressive gross margin expansion, driving full year adjusted operating income that significantly surpassed the high end of our guidance. As we enter fiscal 2026, we remain focused on our strategic priorities, executing the initiatives within our control, and building on the momentum we've established. We believe this focus will drive continued improvement in both sales and profitability over the long-term."

Fourth Quarter Operating Results (Unless otherwise stated, all comparisons are to the fourth quarter of 2024)

• Net sales were $713.6 million, flat to last year.
• Total comparable sales decreased by 1.9%.
• Gross profit increased to $302.7 million versus $282.6 million last year, and gross margin was 42.4% compared to 39.6% last year.
• Reported net loss attributable to Designer Brands Inc. was $20.0 million, or loss per diluted share of $0.40.
• Adjusted net loss was $15.6 million, or $0.31 loss per diluted share.

Full Year Operating Results (Unless otherwise stated, all comparisons are to full year 2024)

• Net sales decreased 3.9% to $2.9 billion.
• Total comparable sales decreased by 4.3%.
• Gross profit decreased to $1.26 billion versus $1.29 billion last year, and gross margin was 43.6% compared to 42.7% last year.
• Reported net loss attributable to Designer Brands Inc. was $8.4 million, or loss per diluted share of $0.17.
• Adjusted net income was $8.3 million, or adjusted diluted earnings per share of $0.16.

Liquidity

• Cash and cash equivalents totaled $50.9 million at the end of 2025, compared to $44.8 million at the end of 2024, with $101.1 million available for borrowings under our senior secured asset-based revolving credit facility.
• Debt totaled $435.0 million at the end of 2025, compared to $491.0 million at the end of 2024.
• Inventories totaled $563.5 million at the end of 2025, compared to $599.8 million at the end of 2024.

Return to Shareholders

A dividend of $0.05 per share of Class A and Class B common shares will be paid on April 10, 2026 to shareholders of record at the close of business on March 26, 2026.

Store Count

(square footage in thousands)	January 31, 2026				February 1, 2025
	Number of Stores		Square Footage		Number of Stores		Square Footage
DSW stores	519		10,177		520		10,252
The Shoe Co. stores	118		598		121		623
Rubino stores	28		147		28		149
Total number of stores	665		10,922		669		11,024

2026 Financial Outlook

The Company has announced the following guidance for the full year 2026:

Metric		2026 Guidance
Designer Brands Change in Net Sales		Down 1% to Up 1%
Effective tax rate		40 %
Diluted Earnings per Share		$0.28 - $0.38
Weighted average diluted shares		58 million

Webcast and Conference Call

The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial in, 1-412-317-6061, and reference conference ID number 7219648 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com:

https://app.webinar.net/3zpg2dvElJL 

For those unable to listen to the live webcast, an archived version will be available at the same location until April 9, 2026. A replay of the teleconference will be available by dialing the following numbers:

North America: 1-855-669-9658
International: 1-412-317-0088
Passcode: 3859679

Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the site to access this information.

About Designer Brands

Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of being shoe obsessed. With a diversified, world-class portfolio of coveted brands, including Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Lucky Brand, Mix No. 6, Crown Vintage and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions delivered to the consumer through a robust direct-to-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and over 660 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in North America, Designer Brands delivers current, in-line footwear and accessories from the largest national brands in the industry and holds leading market share positions in key product categories across women's, men's, and kids'. Designer Brands also distributes its brands internationally through select wholesale and distributor relationships while also leveraging design and sourcing expertise to build private label products for national retailers. Designer Brands is committed to being a difference maker in the world and the footwear industry. By leading with our corporate values of We Belong and We Do What's Right, Designer Brands supports the global community and the health of the planet by donating more than thirteen million pairs of shoes to the global non-profit Soles4Souls since 2018. To learn more, visit www.designerbrands.com. 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors, many of which are outside of the Company's control, that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic and financial conditions, including economic volatility and potential downturn or recession, supply chain disruptions, new or increased tariffs and other barriers to trade, fluctuating interest rates, unemployment rates and inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and the frequency and severity of weather events increases; our ability to execute on our business strategies, including growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, integrating previously acquired businesses and brands, and meeting consumer demands; our ability to maintain strong relationships with our suppliers, vendors, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, and payment processing services whether as a result of reliance on third-party providers or otherwise; our reliance on third parties to provide customer payment processing services; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems, including the use of artificial intelligence tools; our ability to protect our reputation and to maintain the brands we license; our reliance on our reward programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended, and our senior secured term loan credit agreement, as amended, that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with laws and regulations, as well as other legal obligations; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's latest Annual Report on Form 10-K or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, the Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances.

 

DESIGNER BRANDS INC. SEGMENT RESULTS (unaudited)
Net Sales
	Three months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%
Segment net sales:
Retail	$          655,920		87.7 %		$          656,755		88.3 %		$       (835)		(0.1) %
Brand Portfolio	91,883		12.3		87,266		11.7		4,617		5.3 %
Total segment net sales	747,803		100.0 %		744,021		100.0 %		3,782		0.5 %
Elimination of intersegment net sales	(34,214)				(30,449)				(3,765)		12.4 %
Consolidated net sales	$          713,589				$          713,572				$         17		— %

 

	Twelve months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%
Segment net sales:
Retail	$        2,656,809		88.0 %		$        2,749,124		87.3 %		$   (92,315)		(3.4) %
Brand Portfolio	362,861		12.0		398,881		12.7		(36,020)		(9.0) %
Total segment net sales	3,019,670		100.0 %		3,148,005		100.0 %		(128,335)		(4.1) %
Elimination of intersegment net sales	(126,999)				(138,743)				11,744		(8.5) %
Consolidated net sales	$        2,892,671				$        3,009,262				$  (116,591)		(3.9) %

 

Comparable Sales
	Three months ended				Twelve months ended
	January 31, 2026		February 1, 2025		January 31, 2026		February 1, 2025
Change in comparable sales:
Retail segment	(1.7) %		1.0 %		(3.9) %		(1.5) %
Brand Portfolio segment - direct-to-consumer channel	(11.4) %		(17.1) %		(21.9) %		(9.5) %
Total	(1.9) %		0.5 %		(4.3) %		(1.7) %

 

Gross Profit
	Three months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Basis Points
Segment gross profit:
Retail	$   275,058		41.9 %		$   265,878		40.5 %		$      9,180		3.5 %		140
Brand Portfolio	28,644		31.2 %		18,389		21.1 %		10,255		55.8 %		1,010
Total segment gross profit	303,702		40.6 %		284,267		38.2 %		19,435		6.8 %		240
Net elimination of intersegment gross profit	(990)				(1,684)				694
Consolidated gross profit	$   302,712		42.4 %		$   282,583		39.6 %		$    20,129		7.1 %		280

 

	Twelve months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Basis Points
Segment gross profit:
Retail	$ 1,152,705		43.4 %		$ 1,186,228		43.1 %		$   (33,523)		(2.8) %		30
Brand Portfolio	102,791		28.3 %		109,814		27.5 %		(7,023)		(6.4) %		80
Total segment gross profit	1,255,496		41.6 %		1,296,042		41.2 %		(40,546)		(3.1) %		40
Net recognition (elimination) of intersegment gross profit	4,894				(10,084)				14,978
Consolidated gross profit	$ 1,260,390		43.6 %		$ 1,285,958		42.7 %		$   (25,568)		(2.0) %		90

 

Intersegment Recognition and Elimination Activity
	Three months ended
(in thousands)	January 31, 2026		February 1, 2025
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment	$           (34,214)		$           (30,449)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment	24,322		19,048
Recognition of intersegment gross profit for inventory previously purchased that     was subsequently sold to external customers during the current period	8,902		9,717
	$              (990)		$            (1,684)

 

	Twelve months ended
(in thousands)	January 31, 2026		February 1, 2025
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment	$         (126,999)		$         (138,743)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment	92,850		95,138
Recognition of intersegment gross profit for inventory previously purchased that    was subsequently sold to external customers during the current period	39,043		33,521
	$             4,894		$           (10,084)

 

Operating Profit (Loss)
	Three months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Basis Points
Segment operating profit (loss):
Retail	$    29,912		4.6 %		$    24,463		3.7 %		$      5,449		22.3 %		90
Brand Portfolio	3,667		4.0 %		(4,425)		(5.1) %		8,092		NM		NM
Total segment operating profit	33,579		4.5 %		20,038		2.7 %		13,541		67.6 %		180
Corporate/Eliminations	(47,799)				(45,892)				(1,907)		4.2 %
Consolidated operating loss	$   (14,220)		(2.0) %		$   (25,854)		(3.6) %		$    11,634		(45.0) %		160

NM - Not meaningful

 

Twelve months ended
(dollars in thousands)	January 31, 2026				February 1, 2025				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Basis Points
Segment operating profit:
Retail	$   211,552		8.0 %		$   249,442		9.1 %		$   (37,890)		(15.2) %		(110)
Brand Portfolio	10,908		3.0 %		3,225		0.8 %		7,683		238.2 %		220
Total segment operating profit	222,460		7.4 %		252,667		8.0 %		(30,207)		(12.0) %		(60)
Corporate/Eliminations	(174,696)				(217,734)				43,038		(19.8) %
Consolidated operating profit	$    47,764		1.7 %		$    34,933		1.2 %		$    12,831		36.7 %		50

 

Recast of Retail Segment

Beginning with the fourth quarter of 2025, we aggregated our previously reported U.S. Retail operating segment and Canada Retail operating segment into a single reportable segment, the Retail segment, due to the similar nature of their operations and economic characteristics. This aggregation had no impact on our historical consolidated financial position, results of operations, or cash flows. All prior period segment information has been recast to conform to the current reporting segment presentation. The below tables present amounts for the first, second, and third quarters of 2025 and 2024 recast to conform to the current reporting segment presentation.

 

	Three months ended
(dollars in thousands)	May 3, 2025				May 4, 2024				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Comparable Sales
Segment net sales:
Retail	$     627,145		86.7 %		$     676,879		86.7 %		$     (49,734)		(7.3) %		(7.5) %
Brand Portfolio	95,898		13.3		104,130		13.3		(8,232)		(7.9) %		(27.0) %
Total segment net sales	723,043		100.0 %		781,009		100.0 %		(57,966)		(7.4) %		(7.8) %
Elimination of intersegment net sales	(36,134)				(34,413)				(1,721)		5.0 %
Consolidated net sales	$     686,909				$     746,596				$     (59,687)		(8.0) %
Segment gross profit:													Basis Point Change
Retail	$     268,200		42.8 %		$     300,782		44.4 %		$     (32,582)		(10.8) %		(160)
Brand Portfolio	26,671		27.8 %		33,477		32.1 %		(6,806)		(20.3) %		(430)
Total segment gross profit	294,871		40.8 %		334,259		42.8 %		(39,388)		(11.8) %		(200)
Net recognition (elimination) of intersegment gross profit	255				(4,248)				4,503
Consolidated gross profit	$     295,126		43.0 %		$     330,011		44.2 %		$     (34,885)		(10.6) %		(120)
Segment operating expenses:
Retail	$     228,227		36.4 %		$     233,413		34.5 %		$      (5,186)		(2.2) %		190
Brand Portfolio	26,507		27.6 %		34,385		33.0 %		(7,878)		(22.9) %		(540)
Total segment operating expenses	254,734		35.2 %		267,798		34.3 %		(13,064)		(4.9) %		90
Corporate	47,128				55,695				(8,567)		(15.4) %
Consolidated operating expenses	$     301,862		43.9 %		$     323,493		43.3 %		$     (21,631)		(6.7) %		60
Segment operating profit:
Retail	$      39,973		6.4 %		$      67,369		10.0 %		$     (27,396)		(40.7) %		(360)
Brand Portfolio	2,591		2.7 %		1,956		1.9 %		635		32.5 %		80
Total segment operating profit	42,564		5.9 %		69,325		8.9 %		(26,761)		(38.6) %		(300)
Corporate/Eliminations	(49,826)				(59,943)				10,117		(16.9) %
Consolidated operating profit (loss)	$      (7,262)		(1.1) %		$       9,382		1.3 %		$     (16,644)		NM		NM

 

	Three months ended
(dollars in thousands)	August 2, 2025				August 3, 2024				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Comparable Sales
Segment net sales:
Retail	$     686,003		90.4 %		$     716,491		88.2 %		$     (30,488)		(4.3) %		(4.5) %
Brand Portfolio	73,157		9.6		95,993		11.8		(22,836)		(23.8) %		(29.2) %
Total segment net sales	759,160		100.0 %		812,484		100.0 %		(53,324)		(6.6) %		(5.0) %
Elimination of intersegment net sales	(19,398)				(40,584)				21,186		(52.2) %
Consolidated net sales	$     739,762				$     771,900				$     (32,138)		(4.2) %
Segment gross profit:													Basis Point Change
Retail	$     299,472		43.7 %		$     318,003		44.4 %		$     (18,531)		(5.8) %		(70)
Brand Portfolio	18,508		25.3 %		26,635		27.7 %		(8,127)		(30.5) %		(240)
Total segment gross profit	317,980		41.9 %		344,638		42.4 %		(26,658)		(7.7) %		(50)
Net recognition (elimination) of intersegment gross profit	4,953				(5,089)				10,042
Consolidated gross profit	$     322,933		43.7 %		$     339,549		44.0 %		$     (16,616)		(4.9) %		(30)
Segment operating expenses:
Retail	$     230,763		33.6 %		$     231,378		32.3 %		$        (615)		(0.3) %		130
Brand Portfolio	24,692		33.8 %		31,259		32.6 %		(6,567)		(21.0) %		120
Total segment operating expenses	255,455		33.6 %		262,637		32.3 %		(7,182)		(2.7) %		130
Corporate	42,007				50,894				(8,887)		(17.5) %
Consolidated operating expenses	$     297,462		40.2 %		$     313,531		40.6 %		$     (16,069)		(5.1) %		(40)
Segment operating profit (loss):
Retail	$      68,709		10.0 %		$      86,625		12.1 %		$     (17,916)		(20.7) %		(210)
Brand Portfolio	(3,606)		(4.9) %		(2,053)		(2.1) %		(1,553)		75.6 %		(280)
Total segment operating profit	65,103		8.6 %		84,572		10.4 %		(19,469)		(23.0) %		(180)
Corporate/Eliminations	(38,520)				(55,983)				17,463		(31.2) %
Consolidated operating profit	$      26,583		3.6 %		$      28,589		3.7 %		$      (2,006)		(7.0) %		(10)

 

	Six months ended
(dollars in thousands)	August 2, 2025				August 3, 2024				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Comparable Sales
Segment net sales:
Retail	$  1,313,148		88.6 %		$  1,393,370		87.5 %		$     (80,222)		(5.8) %		(6.0) %
Brand Portfolio	169,055		11.4		200,123		12.5		(31,068)		(15.5) %		(28.1) %
Total segment net sales	1,482,203		100.0 %		1,593,493		100.0 %		(111,290)		(7.0) %		(6.4) %
Elimination of intersegment net sales	(55,532)				(74,997)				19,465		(26.0) %
Consolidated net sales	$  1,426,671				$  1,518,496				$     (91,825)		(6.0) %
Segment gross profit:													Basis Point Change
Retail	$     567,672		43.2 %		$     618,785		44.4 %		$     (51,113)		(8.3) %		(120)
Brand Portfolio	45,179		26.7 %		60,112		30.0 %		(14,933)		(24.8) %		(330)
Total segment gross profit	612,851		41.3 %		678,897		42.6 %		(66,046)		(9.7) %		(130)
Net recognition (elimination) of intersegment gross profit	5,208				(9,337)				14,545
Consolidated gross profit	$     618,059		43.3 %		$     669,560		44.1 %		$     (51,501)		(7.7) %		(80)
Segment operating expenses:
Retail	$     458,990		35.0 %		$     464,791		33.4 %		$      (5,801)		(1.2) %		160
Brand Portfolio	51,199		30.3 %		65,644		32.8 %		(14,445)		(22.0) %		(250)
Total segment operating expenses	510,189		34.4 %		530,435		33.3 %		(20,246)		(3.8) %		110
Corporate	89,135				106,589				(17,454)		(16.4) %
Consolidated operating expenses	$     599,324		42.0 %		$     637,024		42.0 %		$     (37,700)		(5.9) %		—
Segment operating profit (loss):
Retail	$     108,682		8.3 %		$     153,994		11.1 %		$     (45,312)		(29.4) %		(280)
Brand Portfolio	(1,015)		(0.6) %		(97)		— %		(918)		946.4 %		(60)
Total segment operating profit	107,667		7.3 %		153,897		9.7 %		(46,230)		(30.0) %		(240)
Corporate/Eliminations	(88,346)				(115,926)				27,580		(23.8) %
Consolidated operating profit	$      19,321		1.4 %		$      37,971		2.5 %		$     (18,650)		(49.1) %		(110)

 

	Three months ended
(dollars in thousands)	November 1, 2025				November 2, 2024				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Comparable Sales
Segment net sales:
Retail	$     687,741		87.1 %		$     698,999		86.2 %		$     (11,258)		(1.6) %		(2.1) %
Brand Portfolio	101,923		12.9		111,492		13.8		(9,569)		(8.6) %		(21.5) %
Total segment net sales	789,664		100.0 %		810,491		100.0 %		(20,827)		(2.6) %		(2.4) %
Elimination of intersegment net sales	(37,253)				(33,297)				(3,956)		11.9 %
Consolidated net sales	$     752,411				$     777,194				$     (24,783)		(3.2) %
Segment gross profit:													Basis Point Change
Retail	$     309,975		45.1 %		$     301,565		43.1 %		$       8,410		2.8 %		200
Brand Portfolio	28,968		28.4 %		31,313		28.1 %		(2,345)		(7.5) %		30
Total segment gross profit	338,943		42.9 %		332,878		41.1 %		6,065		1.8 %		180
Net recognition of intersegment gross profit	676				937				(261)
Consolidated gross profit	$     339,619		45.1 %		$     333,815		43.0 %		$       5,804		1.7 %		210
Segment operating expenses:
Retail	$     237,017		34.5 %		$     230,580		33.0 %		$       6,437		2.8 %		150
Brand Portfolio	23,812		23.4 %		27,150		24.4 %		(3,338)		(12.3) %		(100)
Total segment operating expenses	260,829		33.0 %		257,730		31.8 %		3,099		1.2 %		120
Corporate	39,227				39,097				130		0.3 %
Consolidated operating expenses	$     300,056		39.9 %		$     296,827		38.2 %		$       3,229		1.1 %		170
Segment operating profit:
Retail	$      72,958		10.6 %		$      70,985		10.2 %		$       1,973		2.8 %		40
Brand Portfolio	8,256		8.1 %		7,747		6.9 %		509		6.6 %		120
Total segment operating profit	81,214		10.3 %		78,732		9.7 %		2,482		3.2 %		60
Corporate/Eliminations	(38,551)				(55,916)				17,365		(31.1) %
Consolidated operating profit	$      42,663		5.7 %		$      22,816		2.9 %		$      19,847		87.0 %		280

 

	Nine months ended
(dollars in thousands)	November 1, 2025				November 2, 2024				Change
	Amount		% of Segment Net Sales		Amount		% of Segment Net Sales		Amount		%		Comparable Sales
Segment net sales:
Retail	$  2,000,889		88.1 %		$  2,092,369		87.0 %		$     (91,480)		(4.4) %		(4.7) %
Brand Portfolio	270,978		11.9		311,615		13.0		(40,637)		(13.0) %		(25.9) %
Total segment net sales	2,271,867		100.0 %		2,403,984		100.0 %		(132,117)		(5.5) %		(5.1) %
Elimination of intersegment net sales	(92,785)				(108,294)				15,509		(14.3) %
Consolidated net sales	$  2,179,082				$  2,295,690				$   (116,608)		(5.1) %
Segment gross profit:													Basis Point Change
Retail	$     877,647		43.9 %		$     920,350		44.0 %		$     (42,703)		(4.6) %		(10)
Brand Portfolio	74,147		27.4 %		91,425		29.3 %		(17,278)		(18.9) %		(190)
Total segment gross profit	951,794		41.9 %		1,011,775		42.1 %		(59,981)		(5.9) %		(20)
Net recognition (elimination) of intersegment gross profit	5,884				(8,400)				14,284
Consolidated gross profit	$     957,678		43.9 %		$  1,003,375		43.7 %		$     (45,697)		(4.6) %		20
Segment operating expenses:
Retail	$     696,007		34.8 %		$     695,371		33.2 %		$          636		0.1 %		160
Brand Portfolio	75,011		27.7 %		92,794		29.8 %		(17,783)		(19.2) %		(210)
Total segment operating expenses	771,018		33.9 %		788,165		32.8 %		(17,147)		(2.2) %		110
Corporate	128,362				145,686				(17,324)		(11.9) %
Consolidated operating expenses	$     899,380		41.3 %		$     933,851		40.7 %		$     (34,471)		(3.7) %		60
Segment operating profit:
Retail	$     181,640		9.1 %		$     224,979		10.8 %		$     (43,339)		(19.3) %		(170)
Brand Portfolio	7,241		2.7 %		7,650		2.5 %		(409)		(5.3) %		20
Total segment operating profit	188,881		8.3 %		232,629		9.7 %		(43,748)		(18.8) %		(140)
Corporate/Eliminations	(126,897)				(171,842)				44,945		(26.2) %
Consolidated operating profit	$      61,984		2.8 %		$      60,787		2.6 %		$       1,197		2.0 %		20

NM - Not meaningful

 

DESIGNER BRANDS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts)
	Three months ended				Twelve months ended
	January 31, 2026		February 1, 2025		January 31, 2026		February 1, 2025
Net sales	$     713,589		$     713,572		$   2,892,671		$   3,009,262
Cost of sales	(410,877)		(430,989)		(1,632,281)		(1,723,304)
Gross profit	302,712		282,583		1,260,390		1,285,958
Operating expenses	(319,853)		(311,983)		(1,219,233)		(1,245,834)
Income from equity investments	2,921		4,126		11,026		13,145
Impairment charges	—		(580)		(4,419)		(18,336)
Operating profit (loss)	(14,220)		(25,854)		47,764		34,933
Interest expense, net	(10,383)		(11,130)		(45,338)		(45,291)
Non-operating income (expenses), net	(88)		140		(192)		(372)
Income (loss) before income taxes	(24,691)		(36,844)		2,234		(10,730)
Income tax benefit (provision)	6,504		(1,312)		(6,958)		755
Loss from equity investment	(847)		—		(847)		—
Net loss	(19,034)		(38,156)		(5,571)		(9,975)
Net income attributable to redeemable noncontrolling interest	(958)		(12)		(2,803)		(574)
Net loss attributable to Designer Brands Inc.	$     (19,992)		$     (38,168)		$       (8,374)		$     (10,549)
Diluted loss per share attributable to Designer Brands Inc.	$        (0.40)		$        (0.80)		$        (0.17)		$        (0.20)
Weighted average diluted shares	49,633		47,919		49,136		53,657

 

DESIGNER BRANDS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands)
	January 31, 2026		February 1, 2025
ASSETS
Current assets:
Cash and cash equivalents	$            50,871		$            44,752
Receivables, net	59,444		50,371
Inventories	563,547		599,751
Prepaid expenses and other current assets	34,286		39,950
Total current assets	708,148		734,824
Property and equipment, net	213,291		208,199
Operating lease assets	675,648		701,621
Goodwill	130,837		130,386
Intangible assets, net	81,242		84,639
Deferred tax assets	35,882		43,324
Equity investments	56,260		56,761
Other assets	46,325		49,470
Total assets	$        1,947,633		$        2,009,224
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$          236,195		$          271,524
Accrued expenses	170,014		152,153
Current maturities of long-term debt	6,750		6,750
Current operating lease liabilities	175,515		159,924
Total current liabilities	588,474		590,351
Long-term debt	428,206		484,285
Non-current operating lease liabilities	596,587		635,076
Other non-current liabilities	46,606		17,737
Total liabilities	1,659,873		1,727,449
Redeemable noncontrolling interest	5,274		3,284
Total shareholders' equity	282,486		278,491
Total liabilities, redeemable noncontrolling interest, and shareholders' equity	$        1,947,633		$        2,009,224

 

DESIGNER BRANDS INC. NON-GAAP RECONCILIATION (unaudited and in thousands, except per share amounts)
	Three months ended				Twelve months ended
	January 31, 2026		February 1, 2025		January 31, 2026		February 1, 2025
Operating expenses	$    (319,853)		$    (311,983)		$  (1,219,233)		$  (1,245,834)
Non-GAAP adjustments:
Restructuring and integration costs	3,180		1,729		13,063		11,843
Acquisition-related costs	—		—		—		2,154
Total non-GAAP adjustments	3,180		1,729		13,063		13,997
Adjusted operating expenses	$    (316,673)		$    (310,254)		$  (1,206,170)		$  (1,231,837)
Operating profit (loss)	$     (14,220)		$     (25,854)		$       47,764		$       34,933
Non-GAAP adjustments:
Restructuring and integration costs	3,180		1,729		13,063		11,843
Acquisition-related costs	—		—		—		2,154
Impairment charges	—		580		4,419		18,336
Total non-GAAP adjustments	3,180		2,309		17,482		32,333
Adjusted operating profit (loss)	$     (11,040)		$     (23,545)		$       65,246		$       67,266
Net loss attributable to Designer Brands Inc.	$     (19,992)		$     (38,168)		$       (8,374)		$     (10,549)
Non-GAAP adjustments:
Restructuring and integration costs	3,180		1,729		13,063		11,843
Acquisition-related costs	—		—		—		2,154
Impairment charges	—		580		4,419		18,336
Foreign currency transaction losses (gains)	88		(141)		192		371
Total non-GAAP adjustments before tax effect	3,268		2,168		17,674		32,704
Tax effect on above non-GAAP adjustments	(1,083)		13,567		(5,199)		(8,458)
Valuation allowance change on deferred tax assets	1,280		1,116		1,354		768
Total non-GAAP adjustments, after tax	3,465		16,851		13,829		25,014
Net income attributable to redeemable noncontrolling interest	958		12		2,803		574
Adjusted net income (loss)	$     (15,569)		$     (21,305)		$        8,258		$       15,039
Diluted loss per share	$        (0.40)		$        (0.80)		$        (0.17)		$        (0.20)
Adjusted diluted earnings (loss) per share	$        (0.31)		$        (0.44)		$         0.16		$         0.27

Non-GAAP Measures

To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit (loss), adjusted net income (loss), and adjusted diluted earnings (loss) per share as shown in the table above. These measures adjust for the effects of: (1) restructuring and integration costs, including severance charges; (2) acquisition-related costs; (3) impairment charges; (4) foreign currency transaction losses (gains); (5) the net tax impact of such items; (6) the change in the valuation allowance on deferred tax assets; and (7) net income attributable to redeemable noncontrolling interest. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes that these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations.

Comparable Sales Performance Metric

We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the Retail segment. Comparable sales in Canada exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation.

CONTACT: Stacy Turnof, DesignerBrandsIR@edelman.com

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SOURCE Designer Brands Inc.

FAQ

What were Designer Brands (DBI) fourth-quarter net sales and gross margin on March 26, 2026?

Q4 net sales were $713.6 million and consolidated gross margin was 42.4%. According to the company, Q4 net sales were flat year-over-year while gross margin expanded 280 basis points, driven by stronger margins in both Retail and Brand Portfolio segments.

How did Designer Brands (DBI) perform for fiscal 2025 in revenue and net income?

Fiscal 2025 net sales were $2.893 billion and the company reported a $8.4 million net loss. According to the company, adjusted net income was $8.3 million, and consolidated gross margin improved to 43.6% versus 42.7% prior year.

What liquidity and leverage changes did Designer Brands (DBI) report for year-end 2025?

Cash totaled $50.9 million and total debt was $435.0 million at January 31, 2026. According to the company, cash increased from $44.8 million and debt decreased from $491.0 million, improving liquidity and reducing leverage year-over-year.

What dividend did Designer Brands (DBI) declare and when will it be paid?

Designer Brands declared a $0.05 per-share dividend payable April 10, 2026. According to the company, the dividend applies to Class A and Class B common shares to shareholders of record at the close of business on March 26, 2026.

What is Designer Brands (DBI) guidance for fiscal 2026 net sales and EPS?

2026 guidance calls for net sales to be down 1% to up 1% and diluted EPS of $0.28–$0.38. According to the company, the effective tax rate is expected to be 40% with weighted average diluted shares of about 58 million.