Track market-moving stories before they get noisy

Designer Brands (DBI - Free Report) could be a solid choice for investors given its recent upgrade to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Designer Brands is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Designer Brands, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Designer BrandsFor the fiscal year ending January 2027, this footwear and accessories retailer is expected to earn $0.38 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Designer Brands. Over the past three months, the Zacks Consensus Estimate for the company has increased 8.6%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Designer Brands to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Key Takeaways DBI topped adjusted EPS estimates as gross margin rose 240 bps and adjusted operating income improved.Designer Brands saw retail stabilize while Brand Portfolio sales climbed 19.4% on key brand gains.DBI kept sales and EPS guidance but said 2026 earnings are trending toward the high end of its range. Designer Brands Inc. (DBI - Free Report) used its first-quarter 2026 call to press a forward message centered less on sales acceleration than on stronger margin structure, cleaner inventory and improving earnings power. Adjusted earnings topped the Zacks Consensus Estimate, while management pointed to a steadier start to the second quarter.

The key investor takeaway was that leadership now sees full-year 2026 earnings trending toward the high end of its prior range, even as tariffs and macro conditions remain active watchpoints.

Designer Brands Leans on Margin DisciplineChief executive officer Doug Howe said the quarter reflected structural changes across inventory management, pricing discipline, sourcing and channel profitability rather than a one-time mix benefit. Howe framed the profit improvement as evidence that the company’s reset over the last several quarters is taking hold.

Adjusted earnings per share came in at 7 cents, ahead of the Zacks Consensus Estimate of 2 cents, a 250% surprise. Revenues rose to $696.4 million from $686.9 million and edged past the $695 million consensus by 0.2%.

Gross margin expanded 240 basis points to 45.3%, while adjusted operating income reached $19.4 million versus an adjusted operating loss of $1.1 million a year earlier. That margin-led setup was the clearest feature of the quarter.

DBI Finds Stability in Retail TrendsHowe described the Retail segment as stabilizing, with segment sales roughly flat and comparable sales down 1.2%. He said unfavorable weather, especially in Canada, pressured seasonal categories, but traffic improved and regular-price selling remained solid.

In the United States, management said DSW held footwear market share, citing Circana data. The company also called out strength in dress, affordable luxury and accessories, while sandals, casual and athletic categories were softer.

Howe tied those trends to a more targeted merchandising strategy. He said Designer Brands is focusing on the categories that matter most to customers while also planning store openings and remodels to support a more elevated in-store experience.

Designer Brands Gets Lift From Brand PortfolioThe Brand Portfolio segment again supplied the clearest growth engine. Segment sales increased 19.4%, with management highlighting Topo Athletic, Jessica Simpson and Keds as major contributors.

Howe said Topo grew 32%, Jessica Simpson rose 35% and Keds also advanced 35%. He emphasized expanded distribution, new product introductions and sharper inventory as drivers across the portfolio.

That translated into sharper profitability. Brand Portfolio operating income improved by $13.5 million year over year to $15.4 million, reinforcing management’s view that the segment can raise both growth and flexibility across the broader business.

DBI Keeps Guidance but Shifts Tone HigherChief financial officer Sheamus Toal said full-year sales expectations remain unchanged at down 1% to up 1%, with earnings per share still guided to 28 cents to 38 cents. What changed was management’s tone, with earnings now expected to trend toward the high end of that range.

For the second quarter, Toal said total sales should be flat to slightly up as weather normalizes. He added that results improved sequentially through May after a weak start tied to seasonal demand disruption.

Management kept a cautious stance on tariffs. Toal said guidance excludes potential tariff impacts and assumes that any refunds could be offset by new Section 301 exposure, especially with national brand partners facing their own cost pressures.

Designer Brands Adds Clarity in Q&AA UBS analyst pressed management on how second-quarter trends break between retail and brands, and on the remaining runway for gross margin gains. Howe responded that retail should be flat to slightly positive, while the brand business should post another strong increase.

On margin, Howe said roughly 65% of the retail improvement came from lower markdowns and 35% from improved initial markups. He also pointed to tighter promotions, digital shipping threshold changes and better inventory control.

Toal added that margin gains should continue in the first half, but comparisons get harder later in the year. He also told UBS to expect a full-year tax rate in the low 40s and share count near 58 million.

DBI Leaves Investors With a Tighter StoryThe tone exiting the call was more disciplined than promotional. Howe repeatedly returned to profitable growth, sharper execution and a stronger business foundation rather than calling for a broad demand rebound.

Inventory ended the quarter down 6% year over year, cash rose to $50.1 million and debt fell to $475.3 million from $522.9 million. Those balance-sheet details supported management’s case that the model is getting cleaner as 2026 unfolds.

Zacks Signals Point to Favorable SetupDBI carries a Zacks Rank #2 (Buy), which signals favorable earnings estimate revision trends over the near term. The stock also has Value, Momentum and VGM Scores of A, with a Growth Score of B, a combination that Zacks views as supportive when paired with a top-tier rank. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Under the Zacks framework, A and B Style Scores indicate stronger expected performance characteristics and a VGM Score of A points to an attractive blend of value, growth and momentum factors. Even so, the Zacks Rank can change as analysts update estimates after the just-reported results.

, /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI), one of the world's largest designers, producers and retailers of footwear and accessories, announced the Company will issue its fourth quarter and full year 2025 earnings on March 26, 2026. Management will host a conference call to discuss the results at 8:30 am E.T. A press release detailing the Company's results will be issued prior to the call.

Investors and analysts interested in participating in the call are invited to dial 888-317-6003, or the international dial in, 412-317-6061, and reference conference ID number 7219648 approximately ten minutes prior to the start of the call. The conference call will be broadcast live over the internet and can be accessed through the following link: Designer Brands Inc 4Q25 Earnings Call

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: 

Replay:

North American callers: 1-855-669-9658 

International callers: 1-412-317-0088 

Passcode: 3859679

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 an approximately 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.

SOURCE Designer Brands Inc.

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

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

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

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

Net sales were $713.6 million, flat to last year. Total comparable sales decreased by 1.9%. Gross profit increased to $302.7 million versus $282.6 million last year, and gross margin was 42.4% compared to 39.6% last year. Reported net loss attributable to Designer Brands Inc. was $20.0 million, or loss per diluted share of $0.40. Adjusted net loss was $15.6 million, or $0.31 loss per diluted share. Full Year Operating Results (Unless otherwise stated, all comparisons are to full year 2024)

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

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

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

Store Count

(square footage in thousands)

January 31, 2026

February 1, 2025

Number of Stores

Square Footage

Number of Stores

Square Footage

DSW stores

519

10,177

520

10,252

The Shoe Co. stores

118

598

121

623

Rubino stores

28

147

28

149

Total number of stores

665

10,922

669

11,024

2026 Financial Outlook

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

Metric

 2026 Guidance

Designer Brands Change in Net Sales

Down 1% to Up 1%

Effective tax rate

40 %

Diluted Earnings per Share

$0.28 - $0.38

Weighted average diluted shares

58 million

Webcast and Conference Call

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

https://app.webinar.net/3zpg2dvElJL 

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

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

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

About Designer Brands

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

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

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

DESIGNER BRANDS INC.

SEGMENT RESULTS

(unaudited)

Net Sales

Three months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Segment net sales:

Retail

$          655,920

87.7 %

$          656,755

88.3 %

$       (835)

(0.1) %

Brand Portfolio

91,883

12.3

87,266

11.7

4,617

5.3 %

Total segment net sales

747,803

100.0 %

744,021

100.0 %

3,782

0.5 %

Elimination of
intersegment net sales

(34,214)

(30,449)

(3,765)

12.4 %

Consolidated net sales

$          713,589

$          713,572

$         17

— %

Twelve months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Segment net sales:

Retail

$        2,656,809

88.0 %

$        2,749,124

87.3 %

$   (92,315)

(3.4) %

Brand Portfolio

362,861

12.0

398,881

12.7

(36,020)

(9.0) %

Total segment net sales

3,019,670

100.0 %

3,148,005

100.0 %

(128,335)

(4.1) %

Elimination of
intersegment net sales

(126,999)

(138,743)

11,744

(8.5) %

Consolidated net sales

$        2,892,671

$        3,009,262

$  (116,591)

(3.9) %

Comparable Sales

Three months ended

Twelve months ended

January 31,
2026

February 1,
2025

January 31,
2026

February 1,
2025

Change in comparable sales:

Retail segment

(1.7) %

1.0 %

(3.9) %

(1.5) %

Brand Portfolio segment - direct-to-consumer channel

(11.4) %

(17.1) %

(21.9) %

(9.5) %

Total

(1.9) %

0.5 %

(4.3) %

(1.7) %

Gross Profit

Three months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Basis
Points

Segment gross profit:

Retail

$   275,058

41.9 %

$   265,878

40.5 %

$      9,180

3.5 %

140

Brand Portfolio

28,644

31.2 %

18,389

21.1 %

10,255

55.8 %

1,010

Total segment gross profit

303,702

40.6 %

284,267

38.2 %

19,435

6.8 %

240

Net elimination of intersegment
gross profit

(990)

(1,684)

694

Consolidated gross profit

$   302,712

42.4 %

$   282,583

39.6 %

$    20,129

7.1 %

280

Twelve months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Basis
Points

Segment gross profit:

Retail

$ 1,152,705

43.4 %

$ 1,186,228

43.1 %

$   (33,523)

(2.8) %

30

Brand Portfolio

102,791

28.3 %

109,814

27.5 %

(7,023)

(6.4) %

80

Total segment gross profit

1,255,496

41.6 %

1,296,042

41.2 %

(40,546)

(3.1) %

40

Net recognition (elimination) of
intersegment gross profit

4,894

(10,084)

14,978

Consolidated gross profit

$ 1,260,390

43.6 %

$ 1,285,958

42.7 %

$   (25,568)

(2.0) %

90

Intersegment Recognition and Elimination Activity

Three months ended

(in thousands)

January 31, 2026

February 1, 2025

Intersegment recognition and elimination activity:

   Elimination of net sales recognized by Brand Portfolio segment

$           (34,214)

$           (30,449)

   Cost of sales:

    Elimination of cost of sales recognized by Brand Portfolio segment

24,322

19,048

    Recognition of intersegment gross profit for inventory previously purchased that
    was subsequently sold to external customers during the current period

8,902

9,717

$              (990)

$            (1,684)

Twelve months ended

(in thousands)

January 31, 2026

February 1, 2025

Intersegment recognition and elimination activity:

  Elimination of net sales recognized by Brand Portfolio segment

$         (126,999)

$         (138,743)

  Cost of sales:

   Elimination of cost of sales recognized by Brand Portfolio segment

92,850

95,138

   Recognition of intersegment gross profit for inventory previously purchased that
   was subsequently sold to external customers during the current period

39,043

33,521

$             4,894

$           (10,084)

Operating Profit (Loss)

Three months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Basis
Points

Segment operating profit
(loss):

Retail

$    29,912

4.6 %

$    24,463

3.7 %

$      5,449

22.3 %

90

Brand Portfolio

3,667

4.0 %

(4,425)

(5.1) %

8,092

NM

NM

Total segment operating profit

33,579

4.5 %

20,038

2.7 %

13,541

67.6 %

180

Corporate/Eliminations

(47,799)

(45,892)

(1,907)

4.2 %

Consolidated operating loss

$   (14,220)

(2.0) %

$   (25,854)

(3.6) %

$    11,634

(45.0) %

160

NM - Not meaningful

Twelve months ended

(dollars in thousands)

January 31, 2026

February 1, 2025

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Basis
Points

Segment operating profit:

Retail

$   211,552

8.0 %

$   249,442

9.1 %

$   (37,890)

(15.2) %

(110)

Brand Portfolio

10,908

3.0 %

3,225

0.8 %

7,683

238.2 %

220

Total segment operating profit

222,460

7.4 %

252,667

8.0 %

(30,207)

(12.0) %

(60)

Corporate/Eliminations

(174,696)

(217,734)

43,038

(19.8) %

Consolidated operating profit

$    47,764

1.7 %

$    34,933

1.2 %

$    12,831

36.7 %

50

Recast of Retail Segment

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

Three months ended

(dollars in thousands)

May 3, 2025

May 4, 2024

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Comparable
Sales

Segment net sales:

Retail

$     627,145

86.7 %

$     676,879

86.7 %

$     (49,734)

(7.3) %

(7.5) %

Brand Portfolio

95,898

13.3

104,130

13.3

(8,232)

(7.9) %

(27.0) %

Total segment net sales

723,043

100.0 %

781,009

100.0 %

(57,966)

(7.4) %

(7.8) %

Elimination of intersegment
net sales

(36,134)

(34,413)

(1,721)

5.0 %

Consolidated net sales

$     686,909

$     746,596

$     (59,687)

(8.0) %

Segment gross profit:

Basis Point
Change

Retail

$     268,200

42.8 %

$     300,782

44.4 %

$     (32,582)

(10.8) %

(160)

Brand Portfolio

26,671

27.8 %

33,477

32.1 %

(6,806)

(20.3) %

(430)

Total segment gross profit

294,871

40.8 %

334,259

42.8 %

(39,388)

(11.8) %

(200)

Net recognition (elimination)
of intersegment gross profit

255

(4,248)

4,503

Consolidated gross profit

$     295,126

43.0 %

$     330,011

44.2 %

$     (34,885)

(10.6) %

(120)

Segment operating expenses:

Retail

$     228,227

36.4 %

$     233,413

34.5 %

$      (5,186)

(2.2) %

190

Brand Portfolio

26,507

27.6 %

34,385

33.0 %

(7,878)

(22.9) %

(540)

Total segment operating
expenses

254,734

35.2 %

267,798

34.3 %

(13,064)

(4.9) %

90

Corporate

47,128

55,695

(8,567)

(15.4) %

Consolidated operating
expenses

$     301,862

43.9 %

$     323,493

43.3 %

$     (21,631)

(6.7) %

60

Segment operating profit:

Retail

$      39,973

6.4 %

$      67,369

10.0 %

$     (27,396)

(40.7) %

(360)

Brand Portfolio

2,591

2.7 %

1,956

1.9 %

635

32.5 %

80

Total segment operating
profit

42,564

5.9 %

69,325

8.9 %

(26,761)

(38.6) %

(300)

Corporate/Eliminations

(49,826)

(59,943)

10,117

(16.9) %

Consolidated operating profit
(loss)

$      (7,262)

(1.1) %

$       9,382

1.3 %

$     (16,644)

NM

NM

Three months ended

(dollars in thousands)

August 2, 2025

August 3, 2024

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Comparable
Sales

Segment net sales:

Retail

$     686,003

90.4 %

$     716,491

88.2 %

$     (30,488)

(4.3) %

(4.5) %

Brand Portfolio

73,157

9.6

95,993

11.8

(22,836)

(23.8) %

(29.2) %

Total segment net sales

759,160

100.0 %

812,484

100.0 %

(53,324)

(6.6) %

(5.0) %

Elimination of intersegment
net sales

(19,398)

(40,584)

21,186

(52.2) %

Consolidated net sales

$     739,762

$     771,900

$     (32,138)

(4.2) %

Segment gross profit:

Basis Point
Change

Retail

$     299,472

43.7 %

$     318,003

44.4 %

$     (18,531)

(5.8) %

(70)

Brand Portfolio

18,508

25.3 %

26,635

27.7 %

(8,127)

(30.5) %

(240)

Total segment gross profit

317,980

41.9 %

344,638

42.4 %

(26,658)

(7.7) %

(50)

Net recognition (elimination)
of intersegment gross profit

4,953

(5,089)

10,042

Consolidated gross profit

$     322,933

43.7 %

$     339,549

44.0 %

$     (16,616)

(4.9) %

(30)

Segment operating expenses:

Retail

$     230,763

33.6 %

$     231,378

32.3 %

$        (615)

(0.3) %

130

Brand Portfolio

24,692

33.8 %

31,259

32.6 %

(6,567)

(21.0) %

120

Total segment operating
expenses

255,455

33.6 %

262,637

32.3 %

(7,182)

(2.7) %

130

Corporate

42,007

50,894

(8,887)

(17.5) %

Consolidated operating expenses

$     297,462

40.2 %

$     313,531

40.6 %

$     (16,069)

(5.1) %

(40)

Segment operating profit (loss):

Retail

$      68,709

10.0 %

$      86,625

12.1 %

$     (17,916)

(20.7) %

(210)

Brand Portfolio

(3,606)

(4.9) %

(2,053)

(2.1) %

(1,553)

75.6 %

(280)

Total segment operating profit

65,103

8.6 %

84,572

10.4 %

(19,469)

(23.0) %

(180)

Corporate/Eliminations

(38,520)

(55,983)

17,463

(31.2) %

Consolidated operating profit

$      26,583

3.6 %

$      28,589

3.7 %

$      (2,006)

(7.0) %

(10)

Six months ended

(dollars in thousands)

August 2, 2025

August 3, 2024

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Comparable
Sales

Segment net sales:

Retail

$  1,313,148

88.6 %

$  1,393,370

87.5 %

$     (80,222)

(5.8) %

(6.0) %

Brand Portfolio

169,055

11.4

200,123

12.5

(31,068)

(15.5) %

(28.1) %

Total segment net sales

1,482,203

100.0 %

1,593,493

100.0 %

(111,290)

(7.0) %

(6.4) %

Elimination of intersegment
net sales

(55,532)

(74,997)

19,465

(26.0) %

Consolidated net sales

$  1,426,671

$  1,518,496

$     (91,825)

(6.0) %

Segment gross profit:

Basis Point
Change

Retail

$     567,672

43.2 %

$     618,785

44.4 %

$     (51,113)

(8.3) %

(120)

Brand Portfolio

45,179

26.7 %

60,112

30.0 %

(14,933)

(24.8) %

(330)

Total segment gross profit

612,851

41.3 %

678,897

42.6 %

(66,046)

(9.7) %

(130)

Net recognition (elimination)
of intersegment gross profit

5,208

(9,337)

14,545

Consolidated gross profit

$     618,059

43.3 %

$     669,560

44.1 %

$     (51,501)

(7.7) %

(80)

Segment operating expenses:

Retail

$     458,990

35.0 %

$     464,791

33.4 %

$      (5,801)

(1.2) %

160

Brand Portfolio

51,199

30.3 %

65,644

32.8 %

(14,445)

(22.0) %

(250)

Total segment operating
expenses

510,189

34.4 %

530,435

33.3 %

(20,246)

(3.8) %

110

Corporate

89,135

106,589

(17,454)

(16.4) %

Consolidated operating
expenses

$     599,324

42.0 %

$     637,024

42.0 %

$     (37,700)

(5.9) %

—

Segment operating profit (loss):

Retail

$     108,682

8.3 %

$     153,994

11.1 %

$     (45,312)

(29.4) %

(280)

Brand Portfolio

(1,015)

(0.6) %

(97)

— %

(918)

946.4 %

(60)

Total segment operating profit

107,667

7.3 %

153,897

9.7 %

(46,230)

(30.0) %

(240)

Corporate/Eliminations

(88,346)

(115,926)

27,580

(23.8) %

Consolidated operating profit

$      19,321

1.4 %

$      37,971

2.5 %

$     (18,650)

(49.1) %

(110)

Three months ended

(dollars in thousands)

November 1, 2025

November 2, 2024

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Comparable
Sales

Segment net sales:

Retail

$     687,741

87.1 %

$     698,999

86.2 %

$     (11,258)

(1.6) %

(2.1) %

Brand Portfolio

101,923

12.9

111,492

13.8

(9,569)

(8.6) %

(21.5) %

Total segment net sales

789,664

100.0 %

810,491

100.0 %

(20,827)

(2.6) %

(2.4) %

Elimination of intersegment
net sales

(37,253)

(33,297)

(3,956)

11.9 %

Consolidated net sales

$     752,411

$     777,194

$     (24,783)

(3.2) %

Segment gross profit:

Basis Point
Change

Retail

$     309,975

45.1 %

$     301,565

43.1 %

$       8,410

2.8 %

200

Brand Portfolio

28,968

28.4 %

31,313

28.1 %

(2,345)

(7.5) %

30

Total segment gross profit

338,943

42.9 %

332,878

41.1 %

6,065

1.8 %

180

Net recognition of
intersegment gross profit

676

937

(261)

Consolidated gross profit

$     339,619

45.1 %

$     333,815

43.0 %

$       5,804

1.7 %

210

Segment operating expenses:

Retail

$     237,017

34.5 %

$     230,580

33.0 %

$       6,437

2.8 %

150

Brand Portfolio

23,812

23.4 %

27,150

24.4 %

(3,338)

(12.3) %

(100)

Total segment operating
expenses

260,829

33.0 %

257,730

31.8 %

3,099

1.2 %

120

Corporate

39,227

39,097

130

0.3 %

Consolidated operating
expenses

$     300,056

39.9 %

$     296,827

38.2 %

$       3,229

1.1 %

170

Segment operating profit:

Retail

$      72,958

10.6 %

$      70,985

10.2 %

$       1,973

2.8 %

40

Brand Portfolio

8,256

8.1 %

7,747

6.9 %

509

6.6 %

120

Total segment operating profit

81,214

10.3 %

78,732

9.7 %

2,482

3.2 %

60

Corporate/Eliminations

(38,551)

(55,916)

17,365

(31.1) %

Consolidated operating profit

$      42,663

5.7 %

$      22,816

2.9 %

$      19,847

87.0 %

280

Nine months ended

(dollars in thousands)

November 1, 2025

November 2, 2024

Change

Amount

% of
Segment
Net Sales

Amount

% of
Segment
Net Sales

Amount

%

Comparable
Sales

Segment net sales:

Retail

$  2,000,889

88.1 %

$  2,092,369

87.0 %

$     (91,480)

(4.4) %

(4.7) %

Brand Portfolio

270,978

11.9

311,615

13.0

(40,637)

(13.0) %

(25.9) %

Total segment net sales

2,271,867

100.0 %

2,403,984

100.0 %

(132,117)

(5.5) %

(5.1) %

Elimination of intersegment
net sales

(92,785)

(108,294)

15,509

(14.3) %

Consolidated net sales

$  2,179,082

$  2,295,690

$   (116,608)

(5.1) %

Segment gross profit:

Basis Point
Change

Retail

$     877,647

43.9 %

$     920,350

44.0 %

$     (42,703)

(4.6) %

(10)

Brand Portfolio

74,147

27.4 %

91,425

29.3 %

(17,278)

(18.9) %

(190)

Total segment gross profit

951,794

41.9 %

1,011,775

42.1 %

(59,981)

(5.9) %

(20)

Net recognition (elimination)
of intersegment gross profit

5,884

(8,400)

14,284

Consolidated gross profit

$     957,678

43.9 %

$  1,003,375

43.7 %

$     (45,697)

(4.6) %

20

Segment operating expenses:

Retail

$     696,007

34.8 %

$     695,371

33.2 %

$          636

0.1 %

160

Brand Portfolio

75,011

27.7 %

92,794

29.8 %

(17,783)

(19.2) %

(210)

Total segment operating
expenses

771,018

33.9 %

788,165

32.8 %

(17,147)

(2.2) %

110

Corporate

128,362

145,686

(17,324)

(11.9) %

Consolidated operating
expenses

$     899,380

41.3 %

$     933,851

40.7 %

$     (34,471)

(3.7) %

60

Segment operating profit:

Retail

$     181,640

9.1 %

$     224,979

10.8 %

$     (43,339)

(19.3) %

(170)

Brand Portfolio

7,241

2.7 %

7,650

2.5 %

(409)

(5.3) %

20

Total segment operating
profit

188,881

8.3 %

232,629

9.7 %

(43,748)

(18.8) %

(140)

Corporate/Eliminations

(126,897)

(171,842)

44,945

(26.2) %

Consolidated operating profit

$      61,984

2.8 %

$      60,787

2.6 %

$       1,197

2.0 %

20

NM - Not meaningful

DESIGNER BRANDS INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited and in thousands, except per share amounts)

Three months ended

Twelve months ended

January 31,
2026

February 1,
2025

January 31,
2026

February 1,
2025

Net sales

$     713,589

$     713,572

$   2,892,671

$   3,009,262

Cost of sales

(410,877)

(430,989)

(1,632,281)

(1,723,304)

Gross profit

302,712

282,583

1,260,390

1,285,958

Operating expenses

(319,853)

(311,983)

(1,219,233)

(1,245,834)

Income from equity investments

2,921

4,126

11,026

13,145

Impairment charges

—

(580)

(4,419)

(18,336)

Operating profit (loss)

(14,220)

(25,854)

47,764

34,933

Interest expense, net

(10,383)

(11,130)

(45,338)

(45,291)

Non-operating income (expenses), net

(88)

140

(192)

(372)

Income (loss) before income taxes

(24,691)

(36,844)

2,234

(10,730)

Income tax benefit (provision)

6,504

(1,312)

(6,958)

755

Loss from equity investment

(847)

—

(847)

—

Net loss

(19,034)

(38,156)

(5,571)

(9,975)

Net income attributable to redeemable noncontrolling interest

(958)

(12)

(2,803)

(574)

Net loss attributable to Designer Brands Inc.

$     (19,992)

$     (38,168)

$       (8,374)

$     (10,549)

Diluted loss per share attributable to Designer Brands Inc.

$        (0.40)

$        (0.80)

$        (0.17)

$        (0.20)

Weighted average diluted shares

49,633

47,919

49,136

53,657

DESIGNER BRANDS INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

January 31, 2026

February 1, 2025

ASSETS

Current assets:

Cash and cash equivalents

$            50,871

$            44,752

Receivables, net

59,444

50,371

Inventories

563,547

599,751

Prepaid expenses and other current assets

34,286

39,950

Total current assets

708,148

734,824

Property and equipment, net

213,291

208,199

Operating lease assets

675,648

701,621

Goodwill

130,837

130,386

Intangible assets, net

81,242

84,639

Deferred tax assets

35,882

43,324

Equity investments

56,260

56,761

Other assets

46,325

49,470

Total assets

$        1,947,633

$        2,009,224

LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND
SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

$          236,195

$          271,524

Accrued expenses

170,014

152,153

Current maturities of long-term debt

6,750

6,750

Current operating lease liabilities

175,515

159,924

Total current liabilities

588,474

590,351

Long-term debt

428,206

484,285

Non-current operating lease liabilities

596,587

635,076

Other non-current liabilities

46,606

17,737

Total liabilities

1,659,873

1,727,449

Redeemable noncontrolling interest

5,274

3,284

Total shareholders' equity

282,486

278,491

Total liabilities, redeemable noncontrolling interest, and shareholders' equity

$        1,947,633

$        2,009,224

DESIGNER BRANDS INC.

NON-GAAP RECONCILIATION

(unaudited and in thousands, except per share amounts)

Three months ended

Twelve months ended

January 31, 2026

February 1, 2025

January 31, 2026

February 1, 2025

Operating expenses

$    (319,853)

$    (311,983)

$  (1,219,233)

$  (1,245,834)

Non-GAAP adjustments:

Restructuring and integration costs

3,180

1,729

13,063

11,843

Acquisition-related costs

—

—

—

2,154

Total non-GAAP adjustments

3,180

1,729

13,063

13,997

Adjusted operating expenses

$    (316,673)

$    (310,254)

$  (1,206,170)

$  (1,231,837)

Operating profit (loss)

$     (14,220)

$     (25,854)

$       47,764

$       34,933

Non-GAAP adjustments:

Restructuring and integration costs

3,180

1,729

13,063

11,843

Acquisition-related costs

—

—

—

2,154

Impairment charges

—

580

4,419

18,336

Total non-GAAP adjustments

3,180

2,309

17,482

32,333

Adjusted operating profit (loss)

$     (11,040)

$     (23,545)

$       65,246

$       67,266

Net loss attributable to Designer Brands Inc.

$     (19,992)

$     (38,168)

$       (8,374)

$     (10,549)

Non-GAAP adjustments:

Restructuring and integration costs

3,180

1,729

13,063

11,843

Acquisition-related costs

—

—

—

2,154

Impairment charges

—

580

4,419

18,336

Foreign currency transaction losses (gains)

88

(141)

192

371

Total non-GAAP adjustments before tax effect

3,268

2,168

17,674

32,704

Tax effect on above non-GAAP adjustments

(1,083)

13,567

(5,199)

(8,458)

Valuation allowance change on deferred tax assets

1,280

1,116

1,354

768

Total non-GAAP adjustments, after tax

3,465

16,851

13,829

25,014

Net income attributable to redeemable noncontrolling
interest

958

12

2,803

574

Adjusted net income (loss)

$     (15,569)

$     (21,305)

$        8,258

$       15,039

Diluted loss per share

$        (0.40)

$        (0.80)

$        (0.17)

$        (0.20)

Adjusted diluted earnings (loss) per share

$        (0.31)

$        (0.44)

$         0.16

$         0.27

Non-GAAP Measures

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

Comparable Sales Performance Metric

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

CONTACT: Stacy Turnof, [email protected]

SOURCE Designer Brands Inc.

Designer Brands Inc. (DBI) Q4 2026 Earnings Call Transcript

, /PRNewswire/ -- Designer Brands Inc. (NYSE: DBI), one of the world's largest designers, producers and retailers of footwear and accessories, announced the Company will issue its first quarter 2026 earnings on June 9, 2026. Management will host a conference call to discuss the results at 8:30 am E.T. A press release detailing the Company's results will be issued prior to the call.

Investors and analysts interested in participating in the call are invited to dial 888-317-6003, or the international dial in, 412-317-6061, and reference conference ID number 6930887 approximately ten minutes prior to the start of the call. The conference call will be broadcast live over the internet and can be accessed through the following link: Designer Brands Inc 1Q26 Earnings Call

For those unable to listen to the live webcast, an archived version will be available at the same location until June 23, 2026. A replay of the teleconference will be available by dialing the following numbers: 

Replay:

North American callers: 1-855-669-9658 

International callers: 1-412-317-0088 

Passcode: 7496602

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 an approximately 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.

SOURCE Designer Brands Inc.

Designer Brands (DBI - Free Report) came out with quarterly earnings of $0.07 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to a loss of $0.26 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +250.00%. A quarter ago, it was expected that this footwear and accessories retailer would post a loss of $0.48 per share when it actually produced a loss of $0.31, delivering a surprise of +35.42%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Designer Brands, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $696.35 million for the quarter ended April 2026, surpassing the Zacks Consensus Estimate by 0.19%. This compares to year-ago revenues of $686.91 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Designer Brands shares have added about 19.5% since the beginning of the year versus the S&P 500's gain of 8.2%.

What's Next for Designer Brands?While Designer Brands has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Designer Brands was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.30 on $744 million in revenues for the coming quarter and $0.35 on $2.91 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Retail - Apparel and Shoes is currently in the top 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Stitch Fix (SFIX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended April 2026. The results are expected to be released on June 10.

This online clothing styling service is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents no change from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 1.3% higher over the last 30 days to the current level.

Stitch Fix's revenues are expected to be $333.07 million, up 2.5% from the year-ago quarter.

Designer Brands Inc. reported a mixed Q1 report. Revenues were still weak as comparable sales declined by -1.1%. Industry trends and macroeconomic pressure weigh on DBI. DBI posted strong gross margin gains and brand portfolio growth, but earnings momentum is guided to reverse in upcoming quarters.

Key Takeaways DBI posted Q1 adjusted EPS of 7 cents, beating estimates and improving from a year-ago loss.DBI sales rose 1.4% to $696.4M, while comparable sales declined 1.1% y/y.DBI reaffirmed its FY26 guidance and sees EPS of 28-38 cents despite macro uncertainty. Designer Brands Inc. (DBI - Free Report) reported first-quarter fiscal 2026 results, wherein the top and bottom lines surpassed the Zacks Consensus Estimate. Revenues increased year over year, while earnings improved significantly from the prior-year quarter. However, Designer Brands' shares fell 21% yesterday as investors focused on the company's still-soft underlying demand trends.

The company highlighted a strong start to fiscal 2026, driven by double-digit sales growth in its Brand Portfolio segment and encouraging stabilization in its Retail segment. Management also emphasized meaningful profitability improvements, supported by inventory management, pricing discipline, sourcing efficiencies and enhanced channel profitability. Management expressed confidence in achieving the high end of its fiscal 2026 earnings guidance despite ongoing macroeconomic uncertainty.

More on Designer Brands’ Q1 ResultsDBI posted adjusted earnings of 7 cents per share, which beat the Zacks Consensus Estimate of adjusted earnings of 2 cents. Notably, the company reported an adjusted loss of 27 cents in the year-ago quarter.

Net sales were $696.4 million, up 1.4% year over year. The top line marginally surpassed the Zacks Consensus Estimate of $695 million. Comparable sales (comps) decreased 1.1% year over year.

Insight Into DBI’s Margins & ExpensesGross profit amounted to $315.3 million, up 7.1% from $294.5 million in the year-ago quarter. Also, the gross margin increased 240 basis points to 45.3% from 42.9% in the prior-year period. The margin expansion reflected structural improvements across inventory management, pricing discipline, sourcing initiatives and channel profitability.

Operating profit came in at $18.9 million against an operating loss of $7.9 million in the year-ago quarter. Adjusted operating profit improved to $19.4 million from an adjusted operating loss of $1.1 million last year.

Update on Designer Brands’ Segmental PerformanceRetail: Segment sales were $626.7 million, missing the Zacks Consensus Estimate of $627 million and falling 0.1% year over year. Comparable sales decreased 1.2% compared with a decline of 7.5% in the year-ago quarter.

Segment gross profit increased 6% year over year to $284.3 million, with the gross margin expanding 260 basis points to 45.4%. Segment operating profit rose 28.3% to $51.3 million, while the operating margin expanded 180 basis points to 8.2%.

Brand Portfolio: Segment sales increased 19.4% year over year to $114.5 million, surpassing the Zacks Consensus Estimate of $105 million. Direct-to-consumer comparable sales in the segment rose 3% against a decline of 27% in the prior-year quarter.

Segment gross profit jumped 49.4% year over year to $38.9 million. The gross margin expanded 680 basis points to 33.9%. Segment operating profit jumped to $15.4 million from $1.9 million in the prior-year quarter, with the operating margin increasing 1,150 basis points to 13.5%.

DBI’s Financial Snapshot: Cash & Debt OverviewAs of May 2, 2026, the company reported cash and cash equivalents of $50.1 million compared with $46 million at the end of the same period in fiscal 2025. It also had $138.5 million available for borrowings under its senior secured asset-based revolving credit facility.

Debt stood at $475.3 million at the close of the fiscal first quarter, down from $522.9 million at the end of the same period last year. The company reported inventories of $586.6 million at quarter-end compared with $623.6 million in the year-ago period.

Update on DBI's StoresAs of May 2, 2026, Designer Brands operated 663 stores across North America compared with 669 in the year-ago period. The company's retail footprint included 518 DSW stores, 118 The Shoe Co. locations and 27 Rubino stores.

Designer Brands’ FY26 GuidanceFor fiscal 2026, the company reaffirmed its outlook and expects net sales between down 1% and up 1%. Earnings per share are projected to be 28-38 cents.

DBI Stock Past 3-Month Performance

Image Source: Zacks Investment Research

Shares of this Zacks Rank #3 (Hold) company have gained 20.7% in the past three months compared with the industry's 1.5% growth.

Key PicksWe have highlighted three better-ranked stocks, namely, Genesco Inc. (GCO - Free Report) , Levi Strauss & Co. (LEVI - Free Report) and Fossil Group, Inc. (FOSL - Free Report) .

Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores. The company has a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings implies growth of 55.2% from the year-ago actual. GCO delivered a trailing four-quarter average earnings surprise of 3.8%.

Levi Strauss designs and markets jeans, casual wear and related accessories for men, women and children. It currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for Levi Strauss’ current fiscal-year earnings and sales suggests growth of 11.9% and 5.2%, respectively, from the year-ago actuals. LEVI delivered a trailing four-quarter average earnings surprise of 21.4%.

Fossil Group is involved in designing, marketing and distributing consumer fashion accessories. The company has a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Fossil Group’s current financial-year earnings and sales indicates growth of 87.6% and a decline of 4.9%, respectively, from the year-ago actuals. FOSL delivered a negative trailing four-quarter average earnings surprise of 381.8%.