Designer Brands (NYSE: DBI) boosts margins and guides higher for 2026

Rhea-AI Filing Summary

Designer Brands Inc. reported fourth quarter and fiscal 2025 results showing flat revenue but stronger profitability metrics. Fourth quarter net sales were $713.6 million, with total comparable sales down 1.9%. Gross margin improved to 42.4% from 39.6%, and the quarter recorded a net loss of $20.0 million, or $0.40 per diluted share, with adjusted net loss of $15.6 million, or $0.31 per diluted share.

For the full year, net sales were $2.89 billion, down 3.9%, while gross margin rose to 43.6% from 42.7%. The company posted a net loss of $8.4 million and adjusted net income of $8.3 million, or $0.16 per diluted share. Debt fell to $435.0 million, cash increased to $50.9 million, and inventories declined. The board declared a $0.05 per share dividend. 2026 guidance calls for net sales between down 1% and up 1% and diluted EPS between $0.28 and $0.38.

0001319947false00013199472026-03-262026-03-26

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 26, 2026

Designer Brands Inc.

(Exact name of registrant as specified in its charter)

Ohio

001-32545

31-0746639

(State or other Jurisdiction of Incorporation)

(Commission File Number)

(IRS Employer Identification No.)

810 DSW Drive, Columbus, Ohio						43219
(Address of Principal Executive Offices)						(Zip Code)

Registrant’s telephone number, including area code: (614) 237-7100

 N/A

(Former name or former address if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of each exchange on which registered
Class A Common Shares, without par value			DBI			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act.    ☐

Item 2.02 Results of Operations and Financial Condition.

On March 26, 2026, Designer Brands Inc. (the "Company") issued a press release announcing its consolidated financial results for the quarter and fiscal year ended January 31, 2026. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit Number						Description
99.1						Press Release of Designer Brands Inc., dated March 26, 2026.
104						Cover Page Interactive Data File (embedded within the Inline XBRL document).

Signature  

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Designer Brands Inc.

By:

/s/ Lisa M. Yerrace

Lisa M. Yerrace

Senior Vice President, General Counsel and Corporate Secretary

Date:

March 26, 2026

Exhibit 99.1

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

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 - 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

FAQ

How did Designer Brands (DBI) perform in the fourth quarter of 2025?

Designer Brands delivered fourth quarter net sales of $713.6 million, essentially flat year over year. Comparable sales declined 1.9%, but gross margin expanded to 42.4% from 39.6%. The company reported a net loss of $20.0 million and an adjusted net loss of $15.6 million.

What were Designer Brands’ full-year 2025 financial results?

For fiscal 2025, Designer Brands generated $2.89 billion in net sales, down 3.9% from 2024. Gross margin improved to 43.6% from 42.7%. The company reported a net loss of $8.4 million but achieved adjusted net income of $8.3 million, or $0.16 per diluted share.

What 2026 financial guidance did Designer Brands (DBI) provide?

Designer Brands expects 2026 net sales to range from down 1% to up 1% versus 2025. The company projects diluted earnings per share between $0.28 and $0.38, based on 58 million weighted average diluted shares, signaling anticipated profitability growth compared with 2025 adjusted EPS of $0.16.

How is Designer Brands’ balance sheet positioned at the end of 2025?

At January 31, 2026, Designer Brands held $50.9 million in cash and cash equivalents and $563.5 million in inventories. Total debt was $435.0 million, down from $491.0 million a year earlier, while total shareholders’ equity stood at $282.5 million, reflecting a modestly deleveraged position.

Did Designer Brands declare a dividend with these results?

Yes. Designer Brands declared a cash dividend of $0.05 per Class A and Class B share. The dividend is payable on April 10, 2026 to shareholders of record at the close of business on March 26, 2026, continuing the company’s practice of returning capital.

How did segment performance contribute to Designer Brands’ 2025 results?

In 2025, Retail segment net sales were $2.66 billion, representing 88.0% of segment net sales, while Brand Portfolio contributed $362.9 million, or 12.0%. Retail segment gross margin was 43.4% and Brand Portfolio 28.3%, with total segment operating profit of $222.5 million before corporate costs.

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