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 /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)
Full Year Operating Results (Unless otherwise stated, all comparisons are to full year 2024)
Liquidity
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, [email protected]
SOURCE Designer Brands Inc.