Designer Brands Inc. Reports Second Quarter 2025 Financial Results
Sequential comparable sales improvement from first quarter of 2025 underscores strength and efficacy of strategies
Delivered positive diluted earnings per share ("EPS") of $0.22 and positive adjusted diluted EPS of $0.34 with growth over the same period last year
COLUMBUS, Ohio, Sept. 9, 2025 /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 second quarter ended August 2, 2025.
"Our second quarter results were highlighted by a 280-basis point sequential improvement in comparable sales from the first quarter, underscoring the impact of our targeted operational initiatives," stated Doug Howe, Chief Executive Officer. "These initiatives supported a strong start to the back-to-school season within the U.S. Retail segment as well as gradual improvements in traffic and a notable uptick in conversion. We anticipate our ongoing efforts to strengthen our brand, drive awareness through investments in marketing, and optimize our omni-channel model will continue to support our transformation."
Howe continued, "While consumer sentiment has ticked up slightly, given the ongoing macroeconomic volatility with recent extended tariff increases and caution in discretionary spending, there is still a notable amount of uncertainty. That said, we remain committed to disciplined execution in those areas within our control as we navigate the near-term environment while continuing to build a stronger, more sustainable business for the future."
Second Quarter Operating Results (Unless otherwise stated, all comparisons are to the second quarter of 2024)
Liquidity
Store Count
(square footage in thousands)
August 2, 2025
August 3, 2024
Number of
Stores
Square
Footage
Number of
Stores
Square
Footage
U.S. Retail segment - DSW stores
493
9,686
499
9,879
Canada Retail segment:
The Shoe Co. stores
121
618
123
631
Rubino stores
28
147
28
149
DSW stores
26
511
26
511
175
1,276
177
1,291
Total number of stores
668
10,962
676
11,170
2025 Financial Outlook
Due to macroeconomic uncertainty stemming primarily from global trade policies, the Company has elected not to reinstate full year 2025 guidance.
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 3316589 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/dp6G0Qa0NM2
For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until September 23, 2025. A replay of the teleconference will be available by dialing the following numbers:
U.S.: 1-877-344-7529
Canada: 1-855-669-9658
International: 1-412-317-0088
Passcode: 4429044
Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the website 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 twelve 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, and meeting consumer demands; our ability to successfully and efficiently integrate acquisitions in a manner that does not impede growth; 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, whether as a result of reliance on third-party providers or otherwise; 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; 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 Annual Report on Form 10-K for the fiscal year ended February 1, 2025 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)
August 2, 2025
August 3, 2024
Change
Amount
% of
Segment
Net Sales
Amount
% of
Segment
Net Sales
Amount
%
Segment net sales:
U.S. Retail
$ 610,926
80.5 %
$ 641,694
79.0 %
$ (30,768)
(4.8) %
Canada Retail
75,077
9.9 %
74,797
9.2 %
280
0.4 %
Brand Portfolio
73,157
9.6 %
95,993
11.8 %
(22,836)
(23.8) %
Total segment net sales
759,160
100.0 %
812,484
100.0 %
(53,324)
(6.6) %
Elimination of intersegment net sales
(19,398)
(40,584)
21,186
(52.2) %
Consolidated net sales
$ 739,762
$ 771,900
$ (32,138)
(4.2) %
Six months ended
(dollars in thousands)
August 2, 2025
August 3, 2024
Change
Amount
% of
Segment
Net Sales
Amount
% of
Segment
Net Sales
Amount
%
Segment net sales:
U.S. Retail
$ 1,184,166
79.9 %
$ 1,263,061
79.3 %
$ (78,895)
(6.2) %
Canada Retail
128,982
8.7 %
130,309
8.2 %
(1,327)
(1.0) %
Brand Portfolio
169,055
11.4 %
200,123
12.5 %
(31,068)
(15.5) %
Total segment net sales
1,482,203
100.0 %
1,593,493
100.0 %
(111,290)
(7.0) %
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) %
Comparable Sales
Three months ended
Six months ended
August 2, 2025
August 3, 2024
August 2, 2025
August 3, 2024
Change in comparable sales:
U.S. Retail segment
(4.9) %
(1.1) %
(6.1) %
(1.7) %
Canada Retail segment
(0.6) %
(3.1) %
(4.4) %
(3.9) %
Brand Portfolio segment - direct-to-consumer channel
(29.2) %
(7.0) %
(28.1) %
(4.8) %
Total
(5.0) %
(1.4) %
(6.4) %
(1.9) %
Gross Profit
Three months ended
(dollars in thousands)
August 2, 2025
August 3, 2024
Change
Amount
% of
Segment
Net Sales
Amount
% of
Segment
Net Sales
Amount
%
Basis
Points
Segment gross profit:
U.S. Retail
$ 264,522
43.3 %
$ 282,916
44.1 %
$ (18,394)
(6.5) %
(80)
Canada Retail
34,950
46.6 %
35,087
46.9 %
(137)
(0.4) %
(30)
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)
Six months ended
(dollars in thousands)
August 2, 2025
August 3, 2024
Change
Amount
% of
Segment
Net Sales
Amount
% of
Segment
Net Sales
Amount
%
Basis
Points
Segment gross profit:
U.S. Retail
$ 507,318
42.8 %
$ 557,324
44.1 %
$ (50,006)
(9.0) %
(130)
Canada Retail
60,354
46.8 %
61,461
47.2 %
(1,107)
(1.8) %
(40)
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)
Intersegment Eliminations
Three months ended
(in thousands)
August 2, 2025
August 3, 2024
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment
$ (19,398)
$ (40,584)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment
13,785
28,174
Recognition of intersegment gross profit for inventory previously purchased that
was subsequently sold to external customers during the current period
10,566
7,321
$ 4,953
$ (5,089)
Six months ended
(in thousands)
August 2, 2025
August 3, 2024
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment
$ (55,532)
$ (74,997)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment
39,599
52,267
Recognition of intersegment gross profit for inventory previously purchased that
was subsequently sold to external customers during the current period
21,141
13,393
$ 5,208
$ (9,337)
Operating Profit
Three months ended
(dollars in thousands)
August 2, 2025
August 3, 2024
Change
Amount
% of
Segment
Net Sales
Amount
% of
Segment
Net Sales
Amount
%
Basis
Points
Segment operating profit (loss):
U.S. Retail
$ 60,211
9.9 %
$ 77,573
12.1 %
$ (17,362)
(22.4) %
(220)
Canada Retail
8,498
11.3 %
9,052
12.1 %
(554)
(6.1) %
(80)
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
%
Basis
Points
Segment operating profit (loss)
U.S. Retail
$ 99,819
8.4 %
$ 141,774
11.2 %
$ (41,955)
(29.6) %
(280)
Canada Retail
8,863
6.9 %
12,220
9.4 %
(3,357)
(27.5) %
(250)
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)
DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
Three months ended
Six months ended
August 2, 2025
August 3, 2024
August 2, 2025
August 3, 2024
Net sales
$ 739,762
$ 771,900
$ 1,426,671
$ 1,518,496
Cost of sales
(416,829)
(432,351)
(808,612)
(848,936)
Gross profit
322,933
339,549
618,059
669,560
Operating expenses
(297,462)
(313,531)
(599,324)
(637,024)
Income from equity investments
2,578
2,571
5,005
5,435
Impairment charges
(1,466)
—
(4,419)
—
Operating profit
26,583
28,589
19,321
37,971
Interest expense, net
(11,667)
(11,035)
(23,535)
(22,596)
Non-operating expenses, net
(78)
(109)
(70)
(252)
Income (loss) before income taxes
14,838
17,445
(4,284)
15,123
Income tax provision
(3,557)
(3,363)
(1,571)
(156)
Net income (loss)
11,281
14,082
(5,855)
14,967
Net income attributable to redeemable noncontrolling interest
(454)
(258)
(742)
(360)
Net income (loss) attributable to Designer Brands Inc.
$ 10,827
$ 13,824
$ (6,597)
$ 14,607
Diluted earnings (loss) per share attributable to Designer Brands Inc.
$ 0.22
$ 0.24
$ (0.14)
$ 0.25
Weighted average diluted shares
49,734
58,576
48,678
58,978
DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
August 2, 2025
February 1, 2025
August 3, 2024
ASSETS
Current assets:
Cash and cash equivalents
$ 44,937
$ 44,752
$ 38,834
Receivables, net
55,675
50,371
49,671
Inventories
610,876
599,751
642,783
Prepaid expenses and other current assets
40,437
39,950
66,760
Total current assets
751,925
734,824
798,048
Property and equipment, net
227,141
208,199
216,313
Operating lease assets
716,685
701,621
723,818
Goodwill
130,716
130,386
130,611
Intangible assets, net
81,881
84,639
86,334
Deferred tax assets
45,067
43,324
39,997
Equity investments
59,446
56,761
61,020
Other assets
48,870
49,470
50,993
Total assets
$ 2,061,731
$ 2,009,224
$ 2,107,134
LIABILITIES, REDEEMABLE NONCONTROLLING
INTEREST, AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$ 239,200
$ 271,524
$ 294,739
Accrued expenses
170,333
152,153
161,155
Current maturities of long-term debt
6,750
6,750
6,750
Current operating lease liabilities
157,212
159,924
156,394
Total current liabilities
573,495
590,351
619,038
Long-term debt
509,593
484,285
458,974
Non-current operating lease liabilities
646,431
635,076
653,416
Other non-current liabilities
48,201
17,737
16,642
Total liabilities
1,777,720
1,727,449
1,748,070
Redeemable noncontrolling interest
3,214
3,284
3,519
Total shareholders' equity
280,797
278,491
355,545
Total liabilities, redeemable noncontrolling interest, and shareholders' equity
$ 2,061,731
$ 2,009,224
$ 2,107,134
DESIGNER BRANDS INC.
NON-GAAP RECONCILIATION
(unaudited and in thousands, except per share amounts)
Three months ended
Six months ended
August 2, 2025
August 3, 2024
August 2, 2025
August 3, 2024
Operating expenses
$ (297,462)
$ (313,531)
$ (599,324)
$ (637,024)
Non-GAAP adjustments:
Restructuring and integration costs
2,212
2,349
6,087
7,178
Acquisition-related costs
—
1,586
—
2,072
Total non-GAAP adjustments
2,212
3,935
6,087
9,250
Adjusted operating expenses
$ (295,250)
$ (309,596)
$ (593,237)
$ (627,774)
Operating profit
$ 26,583
$ 28,589
$ 19,321
$ 37,971
Non-GAAP adjustments:
Restructuring and integration costs
2,212
2,349
6,087
7,178
Acquisition-related costs
—
1,586
—
2,072
Impairment charges
1,466
—
4,419
—
Total non-GAAP adjustments
3,678
3,935
10,506
9,250
Adjusted operating profit
$ 30,261
$ 32,524
$ 29,827
$ 47,221
Net income (loss) attributable to Designer Brands Inc.
$ 10,827
$ 13,824
$ (6,597)
$ 14,607
Non-GAAP adjustments:
Restructuring and integration costs
2,212
2,349
6,087
7,178
Acquisition-related costs
—
1,586
—
2,072
Impairment charges
1,466
—
4,419
—
Foreign currency transaction losses
78
109
70
252
Total non-GAAP adjustments before tax effect
3,756
4,044
10,576
9,502
Tax effect on above non-GAAP adjustments
1,921
(1,149)
257
(2,547)
Valuation allowance change on deferred tax assets
(242)
94
(770)
(42)
Total non-GAAP adjustments, after tax
5,435
2,989
10,063
6,913
Net income attributable to redeemable noncontrolling interest
454
258
742
360
Adjusted net income
$ 16,716
$ 17,071
$ 4,208
$ 21,880
Diluted earnings (loss) per share
$ 0.22
$ 0.24
$ (0.14)
$ 0.25
Adjusted diluted earnings per share
$ 0.34
$ 0.29
$ 0.09
$ 0.37
Non-GAAP Measures
To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the U.S. ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit, adjusted net income, and adjusted diluted earnings 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; (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 U.S. Retail and Canada Retail segments. Comparable sales for the Canada Retail segment 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.
SOURCE Designer Brands Inc.