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A retired couple with a $2 million dividend-focused portfolio yielding roughly 6%, or $120,000 per year, watched their income stream fall by $14,400 during a difficult market period as covered-call funds, mortgage REITs, and business development companies trimmed distributions. Their annual income dropped to $105,600. They did not sell a share. Understanding why they were able to absorb that setback without changing their lifestyle begins with the math of dividend income and ends with the discipline that separates a paycheck portfolio from a panic sale.

The Three Yield Tiers Behind a $2 Million Income Stream Every income portfolio lives somewhere on a spectrum. The same $2 million produces wildly different paychecks depending on where you sit, and each tier comes with a different risk of the kind of cut described above.

Conservative tier, 3% to 4% yield. Dividend growth blue chips and broad dividend ETFs sit here. $2 million at 3.5% yields about $57,000 a year. To pull $120,000 from this tier, you need closer to $3.4 million in capital. Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) pays a 2.3% yield and just raised its quarterly dividend to $1.34, marking the most recent step in a 64-year increase streak. P&G (NYSE:PG) paid through 2008, 2009, and 2020 without flinching, raising the quarterly dividend to $1.0885 in 2026. The Schwab U.S. Dividend Equity ETF (NYSEARCA:SCHD) charges 6 basis points and spreads the bet across names like Bristol-Myers Squibb, Merck, ConocoPhillips, Lockheed Martin, and Chevron.

Moderate tier, 5% to 7% yield. Covered-call equity income funds, preferred shares, equity REITs, and high-dividend equity funds live here. $2 million at 6% generates $120,000, matching the couple in our scenario. The tradeoff is that option premium income compresses when volatility spikes, and covered-call structures cap upside in strong years.

Aggressive tier, 8% to 14% yield. Business development companies, mortgage REITs, and leveraged income funds anchor this tier. $2 million at 10% pays $200,000. Ares Capital (NASDAQ:ARCC) yields 10.1% on its $1.92 annual dividend, with Q1 2026 core EPS of $0.47 covering the $0.48 quarterly payout only narrowly. AGNC Investment (NASDAQ:AGNC) yields 14.1% on a $1.44 annual distribution, but tangible book value slipped to $8.38 per share in Q1 2026.

Why $14,400 Did Not Trigger a Sale Income cuts during stressful market periods tend to follow a familiar pattern. Covered-call funds often reduce distributions as option premiums shrink, while mortgage REITs can make deeper cuts when financing conditions deteriorate. Business development companies may also trim payouts as credit losses and portfolio defaults increase. During 2020, AGNC reduced its monthly distribution from $0.16 to $0.12 per share. Ares Capital trimmed its quarterly dividend from $0.42 to $0.40 before eventually rebuilding it to $0.48 by 2023.

The lower-yield, dividend-growth portion of the portfolio often provides a counterbalance. Johnson & Johnson maintained its dividend through the 2008 financial crisis, the 2009 recession, and the 2020 pandemic disruption. Procter & Gamble continued raising its payout throughout those periods. That stability helps absorb the damage. A 12% reduction on a $120,000 income stream is painful, but the businesses generating the income are still operating, and distribution cuts during non-systemic market stress have historically proven temporary more often than permanent.

The Compounding Math Most Income Investors Underweight A temporary income cut matters less when the underlying portfolio contains businesses capable of growing their payouts over time. A 3.5% yield growing at 8% annually roughly doubles its income stream in nine years. By contrast, a 14% yield that remains flat produces the same income year after year, while a 14% yield accompanied by declining book value may eventually produce less. For retirees living on portfolio income, the distinction is critical. The conservative-tier investor is purchasing future income growth. The aggressive-tier investor is purchasing higher current income and accepting a greater risk of future cuts.

Three Moves Before the Next Stress Year Audit your real spending. A couple replacing $120,000 in gross salary may actually need $85,000 in net spending after payroll tax, retirement contributions, and commuting costs. Lower the target, lower the capital required at every yield tier. Hold a one-to-two-year cash bucket. The reason the couple did not sell is they did not have to. A cash reserve bridges distribution cuts without forced sales, which is the mechanical version of discipline. Cap the aggressive tier at 25% to 30% of the portfolio. Concentrating in mortgage REITs or leveraged covered-call funds above that threshold is what turns a $14,400 cut into a $40,000 cut. Within five years of retirement, model the tax bill of each tier in your actual bracket, because qualified dividends, ordinary REIT distributions, and BDC payouts are taxed very differently.

, /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%.

With the DOJ expected to approve the $110 billion Hollywood megamerger, political concerns over turmoil at Paramount's CBS may push Democratic AGs to act, experts say.

David and Larry Ellison have bought Paramount and are now waiting for regulators to sign off on their plan to buy Warner Bros. Discovery. Eric Charbonneau/Getty Images for The Hollywood Reporter Lots of people have objected to Paramount's planned purchase of Warner Bros. Discovery.

Some of those people are antisemitic, says Paramount's top lawyer.

In an interview with the Los Angeles Times, Makan Delrahim, Paramount's chief legal officer, said that some opposition to the Paramount/WBD deal is coming from people with "antisemitic views."

"Let's be honest," he told the Times. "There's a lot of fear-mongering, particularly from people in Washington, D.C. They are running a political campaign. Some of these people are trying to inflict harm on this transaction, really because of their own antisemitic views. Regulators and law enforcement officials will see right through that."

What does Delrahim mean by that?

Paramount declined to comment. I've also asked Delrahim to expand on his remarks. In the absence of an explanation, the only plausible answer I can think of is that Paramount owners Larry and David Ellison are active supporters of Israel, and Delrahim is suggesting that some people who are critical of the Ellisons' pro-Israel stance are also antisemitic.

This isn't the first time the issue of Israel has come up since the Ellisons bought Paramount: Last fall, Paramount denounced a campaign, signed by some high-profile actors and filmmakers, not to work with some Israeli film organizations. Paramount said the campaign amounted to "silencing individual creative artists based on their nationality."

Paramount's statement generated a response from a group of anonymous Paramount employees, who said the company was siding with "systems of apartheid, occupation, and … a genocide in Gaza and of the Palestinian people."

Debates over the Israeli-Palestinian conflict — and whether criticizing Israel's actions in that conflict equates to antisemitism — are long-standing and highly charged. Which is why it's so striking to see Delrahim, who is meant to shepherd the Paramount/WBD through a thicket of regulators around the world, seemingly connect it to his proposed deal.

Maybe there's some 4-D chess I'm missing here. But it looks like Delrahim — who has spent a lot of time working in Washington, most recently as head of antitrust enforcement at the Department of Justice during Donald Trump's first term — may be making his would-be deal that much harder to get over the line.

Let's say you're a regulator who questions the wisdom of that combination —perhaps you're worried about what it means for the theatrical movie business, or what it might mean for journalism if CBS and CNN are combined. But now Paramount's lawyer is suggesting that your concerns are really a cover for your theoretical antisemitism.

That may not matter when it comes to the Trump administration, which is widely expected to sign off on the transaction. But it's hard to see how this is helpful anywhere else.

Read next

Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor. 

Politics

It has been about a month since the last earnings report for Warner Bros. Discovery (WBD - Free Report) . Shares have lost about 0.4% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Warner Bros. Discovery due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Warner Bros. Discovery Q1 Loss Wider Than Expected, Revenues Fall Y/YWarner Bros. Discovery reported a first-quarter 2026 loss of $1.17 per share, missing the Zacks Consensus Estimate of a loss of 10 cents. The company had reported a loss of 18 cents per share in the year-ago quarter. The quarter's reported GAAP loss was substantially inflated by a $2.8 billion termination fee paid to Netflix in connection with the pending merger with Paramount Skydance Corporation, as well as $1.3 billion in pre-tax acquisition-related amortization and restructuring charges.

Revenues decreased 1% year over year to $8.89 billion, missing the Zacks Consensus Estimate by 0.41%.

Distribution revenues were down 1% ex-forex to $4.91 billion, as underlying growth in global streaming subscribers was offset by continued domestic linear pay TV subscriber declines and the impact of the HBO Max domestic distribution deal renewal with a former related party. Advertising revenues decreased 8% ex-forex year over year to $1.85 billion, as ad-lite streaming subscriber growth was more than offset by the absence of the NBA and continued domestic linear audience declines; the absence of the NBA negatively impacted the year-over-year growth rate by 7% ex-forex. Content revenues were relatively unchanged year over year at $1.89 billion, as higher intercompany content revenues at the Studios segment were offset by higher intercompany eliminations.

WBD ended the first quarter of 2026 with more than 140 million global streaming subscribers, meaningfully exceeding its own guidance threshold and up 14% year over year. Beginning with first-quarter 2026, WBD no longer reports granular subscriber metrics or ARPU on a quarterly basis.

WBD's Q1 2026 DetailsThe Streaming segment reported revenues of $2.89 billion, up 7% ex-forex year over year. Distribution revenues rose 7% ex-forex, driven by continued subscriber growth in existing markets and the global expansion of HBO Max through new distribution deals, partially offset by the domestic distribution deal renewal with a former related party. Advertising revenues increased 19% ex-forex, primarily reflecting growth in global ad-lite subscribers, despite a 5% ex-forex headwind from the absence of the NBA. Streaming Adjusted EBITDA increased 17% ex-forex to $438 million from $339 million in the year-ago quarter, driven by robust topline growth that more than offset higher marketing and content investment tied to HBO Max's international launches.

The Studios segment reported revenues of $3.13 billion, up 31% ex-forex year over year. Content revenues rose 33% ex-forex, with TV revenues increasing 58% ex-forex, primarily driven by higher intercompany content licensing to support HBO Max's international rollout and higher third-party licensing, while theatrical revenues advanced 21% ex-forex on a similar dynamic. Games revenues decreased 30% ex-forex on lower library revenues. Studios Adjusted EBITDA increased 156% ex-forex to $775 million from $259 million in the prior-year quarter, reflecting the step-change benefit of accelerated intercompany content licensing. On a full-year 2026 basis, Studios Adjusted EBITDA is expected to be roughly in line with 2025.

The Global Linear Networks segment reported revenues of $4.38 billion, down 9% ex-forex year over year. Distribution revenues declined 8% ex-forex, primarily driven by a 10% decrease in domestic linear pay TV subscribers, partially offset by a 2% increase in domestic affiliate rates. Advertising revenues fell 12% ex-forex, with the absence of the NBA accounting for 7% of that decline alongside 8% domestic audience declines; underlying advertising trends nevertheless improved 200 basis points sequentially. Global Linear Networks Adjusted EBITDA decreased 10% ex-forex to $1.63 billion from $1.79 billion in the year-ago quarter, though cost discipline helped partially cushion the impact as operating expenses declined 9% ex-forex.

Total Adjusted EBITDA for the first quarter of 2026 was $2.20 billion, roughly flat ex-forex year over year, as gains in the Streaming and Studios segments were offset by the decline in the Global Linear Networks segment.

WBD's Balance Sheet & Cash FlowWarner Bros. Discovery ended the first quarter of 2026 with cash and cash equivalents of $3.26 billion, compared with $4.57 billion as of Dec. 31, 2025. As of March 31, 2026, the company's $4 billion revolving credit facility remained undrawn. WBD had $3.85 billion drawn on its revolving receivables program, a $150 million increase versus the fourth quarter of 2025. Gross debt stood at $33.4 billion with net leverage of 3.4x compared with 3.3x at the end of the fourth quarter of 2025.

First-quarter 2026 operating activities used $208 million in cash, compared with cash provided of $553 million in the prior-year quarter. Free cash flow decreased to negative $476 million from $302 million a year ago, primarily driven by higher net content investment across the Streaming and Studios segments, higher tax payments and working capital timing, partially offset by lower cash interest payments. Free cash flow was unfavorably impacted by approximately $100 million of separation and transaction-related items. WBD repaid $123 million of Senior Notes during the quarter.

Q2 & 2026 Guidance by WBDWBD remains on track to surpass 150 million global streaming subscribers by the end of 2026.

For the second quarter, the absence of the NBA is expected to represent a 20% ex-forex headwind to advertising revenues in the Global Linear Networks segment, partially offset by a net 400 basis point benefit from the NCAA March Madness Final Four and Championship broadcast.

The previously disclosed domestic distribution deal renewal, which has weighed on distribution revenue growth, is expected to be lapped by the end of May 2026.

For Studios, the second quarter will face a difficult comparison against A Minecraft Movie, Sinners and Final Destination: Bloodlines from the prior-year period.

The pending acquisition of WBD by Paramount Skydance Corporation received shareholder approval on April 23, 2026 and is expected to close during the third quarter of 2026. WBD expects to incur additional transaction-related cash costs through the close of the transaction.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

The consensus estimate has shifted -88.1% due to these changes.

VGM ScoresCurrently, Warner Bros. Discovery has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Warner Bros. Discovery has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerWarner Bros. Discovery is part of the Zacks Broadcast Radio and Television industry. Over the past month, Sirius XM (SIRI - Free Report) , a stock from the same industry, has gained 3.9%. The company reported its results for the quarter ended March 2026 more than a month ago.

Sirius XM reported revenues of $2.09 billion in the last reported quarter, representing a year-over-year change of +1.1%. EPS of $0.72 for the same period compares with $0.59 a year ago.

For the current quarter, Sirius XM is expected to post earnings of $0.78 per share, indicating a change of +36.8% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Sirius XM. Also, the stock has a VGM Score of A.

CBS News boss Bari Weiss is likely to gain editorial oversight of CNN if and when Paramount Skydance’s acquisition of Warner Bros. Discovery is approved, according to a report.

Paramount executives are said to have held preliminary discussions with several candidates who would come in and run the business-side operations next to Weiss while she continues to oversee editorial.

The company is considering several big names, including current CNN CEO Mark Thompson, NBCUniversal News Group chairman Cesar Conde and former NBC News chief Noah Oppenheim, Axios reported.

CBS News editor-in-chief Bari Weiss could see her influence expand significantly once the Paramount Skydance-Warner Bros. Discovery merger is approved, according to a report. Los Angeles Times via Getty Images Ben Sherwood, currently CEO of Daily Beast, and former CBS News president David Rhodes are also under consideration, according to the report.

The search implies that once the merger goes through, Weiss will also be put in charge of CNN’s editorial operations, Axios said.

A CNN spokesperson declined to comment. The Post has sought comment from Oppenheim, Sherwood and NBC News.

A spokesperson for Rhodes declined to comment.

All five candidates have extensive experience running large news organizations, a contrast with Weiss, whose background is in print and digital journalism rather than television news management.

Under the current org chart, Tom Cibrowski is president of CBS News. He reports to Paramount television chief George Cheeks, while Weiss reports directly to Paramount Skydance CEO David Ellison.

Last month, Puck News reported that Paramount executives began informal discussions about scaling back Weiss’ role and bringing in a more experienced hand to manage the business side of both CBS News and CNN.

CNN chief executive Mark Thompson is among the media executives reportedly under consideration for a senior role in a combined CBS News-CNN operation. Getty Images for Warner Bros. Discovery According to Puck, the executive would be brought in to allow Weiss to focus on scaling the company’s digital operations.

A Paramount spokesperson denied the report.

According to Axios, Ellison couldn’t be more pleased with Weiss’ performance thus far.

“The Paramount brass loves Bari Weiss,” a source told the news site.

“She has the full confidence of David Ellison, who believes Bari has done a fantastic job as editor-in-chief.”

The source told Axios that “Bari has been involved with identifying people she would partner with on the business side.”

Paramount Skydance CEO David Ellison is reportedly exploring a new leadership structure that could place CNN and CBS News under a unified news operation. Chris Pizzello/Invision/AP The prospect of Weiss overseeing editorial operations across both CBS News and CNN would represent a remarkable expansion of her influence less than a year after she was brought in to run CBS News.

Weiss, 42, was installed as CBS News editor-in-chief after Ellison’s media company, Skydance, merged with Paramount last year.

Since taking over the helm of the Tiffany Network’s news division, however, Weiss has made changes that have ruffled feathers — nowhere more visibly than at “60 Minutes,” the long-running television newsmagazine.

Last month, Weiss fired the show’s executive producer, Tanya Simon, and two correspondents, Sharyn Alfonsi and Cecilia Vega.

She then installed Nick Bilton, a tech reporter whose bylines appeared in Vanity Fair and the New York Times, as the show’s new executive producer.

NBCUniversal News chair Cesar Conde’s name has surfaced as Paramount weighs candidates to help oversee a combined television news division. Getty Images for TIME Last week, Scott Pelley, the veteran “60 Minutes” correspondent, was fired after he angrily confronted Bilton over the firings.

The show’s three remaining correspondents — Lesley Stahl, Jon Wertheim and Bill Whitaker — announced that they would remain with the program, though they were critical of management’s handling of the firings.

The Post has sought comment from CBS News and Paramount.

Paramount Skydance’s proposed acquisition of Warner Bros. Discovery has not yet closed, though both companies have said they expect the roughly $110 billion deal to be completed in the third quarter of 2026, pending regulatory approvals and any legal challenges.

Warner Bros. Discovery shareholders have already approved the transaction, but the merger still faces scrutiny from antitrust regulators and California Attorney General Rob Bonta, who has said his office is reviewing the deal.

The Department of Justice has approved Paramount‘s $111 billion purchase of Warner Bros Discovery.

A very early birthday present to CEO David Ellison, the anticipated sign-off by the Para-friendly Trump administration has been confirmed to Deadline by multiple sources. There appear to be no significant concessions by Paramount to the DOJ to get the deal done, we hear.

The big hurdle cleared by Para Friday comes as state attorneys general in California, New York and almost a dozen other states are contemplating an antitrust suit to put the brakes on such a mega-studio.

With news of the approval leaking out fast on Friday, Paramount themselves had no comment on the matter. Earlier today, the company and the UFC (who have a $7.7 billion deal of their own with Paramount) got a gift when a federal judge killed an 11th hour lawsuit to stop the Octagon matches set for Trump’s 80th birthday at the White House on June 14.

A Los Angeles billboard for UFC at the White House Dominic Patten/Deadline Among opponents to the merger, Sen. Elizabeth Warren has been in the forefront, and Friday she was quick to react to DOJ green light. “This is terrible news for every American who doesn’t want Trump-aligned billionaires to control what they watch and how much they pay,” the New England senator said. “The Paramount-Warner Bros. deal has reeked of corruption and influence-peddling. This fight isn’t over. State AGs must block this merger.”

Out West, Golden State AG Rob Bonta’s office has long stuck to its line that the “Paramount acquisition of Warner Brothers remains an active investigation, and we do not have any updates to share at this time.” To that, the CA DOJ did not respond to Deadline’s request for comment today.

Overseas, the much debated deal is hitting some roadblocks with UK regulators.

Earlier this week, the Competition and Markets Authority declared that it had opened a “merger inquiry” into the deal. With an August 7 deadline of sorts, the CMA intends to examine if Paramount-WBD meld could present a “realistic prospect of a substantial lessening of competition.” If the Brits believe that such a prospect is real, then a second phase in their probe will kick off — a Phase 2 that could last up to five months and gummy up the works for the merger.

After a months-long death match with Netflix, a bid-raising Paramount succeeded in efforts to acquire Warner Bros. Discovery in late February as streamer co-CEO Ted Sarandos was literally at the White House for meetings. Soon after, Team Ellison said it expected to close the matter in the third quarter, which would have been a remarkably quick turnaround of a deal this size.

A turnaround that looks to be well on track now, at least in America.

Additionally, even as Australia signed off just recently on the deal, more antitrust work is ongoing in the European Union, where a Phase 1 investigation is underway with a deadline of July 7. Experts have predicted a Phase 2 investigation is likely.

Separately, the European Commission is examining the deal under Foreign ⁠Subsidies Regulations and will decide by July 14 whether to ​clear it or open a full investigation. Saudi Arabia’s Public Investment Fund, Qatar Investment Authority and Abu Dhabi’s L’imad Holding are providing $24 billion in equity funding, joining the Ellisons, RedBird Capital and LionTree as investors. Paramount says the Middle Eastern sovereign wealth funds will be purely passive investors.

Back here in the USA, where the Ellisons’ closeness to “good friend” Donald Trump has cast a shadow on the merits of the widely disruptive merger, Democratic lawmakers have asked Treasury Secretary Scott Bessent, in his role as Chair of the Committee on Foreign Investment in the United States (CFIUS), to review potential national security risks of foreign ownership. One issue some have raised is a Congressionally mandated 25% cap on foreign ownership of American broadcast stations.

The Justice Department’s approval was expected, which is why many opponents of the transaction had set their sights on state attorneys general. Still, the DOJ’s decision to sign off on the merger could have an impact on a state legal challenge, as judges may question why the transaction is problematic at the state level but not for federal authorities.

Democrats have charged that the DOJ has been politicized, including on antitrust matters. They have pointed to the Ellisons’ ties to the administration, and to corporate lobbying from officials close to the White House on another merger and antitrust lawsuit.

Politico was first to report on the DOJ approval of the Paramount-WBD merger.

Ted Johnson contributed to this report.

ArrowMark Colorado Holdings LLC increased its stake in shares of Geo Group Inc (The) (NYSE: GEO) by 103.7% in the undefined quarter, according to its most recent 13F filing with the SEC. The firm owned 784,200 shares of the real estate investment trust's stock after buying an additional 399,200 shares during the period.

ROAD TOWN, British Virgin Islands, April 10, 2026 (GLOBE NEWSWIRE) -- Aura Minerals Inc. (NASDAQ: AUGO and B3: AURA33) (“Aura” or the “Company”) is pleased to announce Q1 2026 preliminary production results from the Company’s six operating mines: Aranzazu, Apoena, Minosa, Almas, Borborema and MSG (“Mineração Serra Grande”). Total production in Q1 2026, at current prices, reached 82,137 gold equivalent ounces (“GEO”)1, another high record quarter production, above the previous quarter and also 37% higher when compared to Q1 2025. At constant prices2, Aura’s quarterly production increased by 1% compared to Q4 2025 and 41% above Q1 2025. On track with the Company’s Guidance. During the quarter, Aura sold 81,364 GEO, a slight increase compared to the previous quarter.

Rodrigo Barbosa, CEO and President commented: “We delivered another record production quarter in Q1 2026, reaching 82.1 thousand GEO. Despite dedicating efforts to essential underground infrastructure upgrades at MSG and lower production in Apoena and Borborema due to mine sequencing. For the second semester, we expect higher production at Aranzazu, Apoena, MSG and Borborema, while Almas and Minosa remain stable — very much in line with our annual guidance. Looking to the coming years, we continue advancing the Borborema expansion, the Almas underground development, the updated Feasibility Study for Matupá with its recently published additional ounces, and early works at Era Dorada — all supporting our next phase of growth toward over 600,000 GEO annually.”

Q1 2026 Highlights:

At Aranzazu, production reached 15,694 GEO, representing a 17% decrease compared to the previous quarter, resulting partially from metal prices since higher gold prices negatively impact the conversion to GEO. When compared to Q1 2025, production decreased by 23% also due to the sharp increase in gold and silver prices between the periods which also impacted GEO conversion. This result is in line with the Company’s mine plan and according to mine sequencing; production is expected to increase towards the last quarters of the year. At constant prices3, Aranzazu production was 15% lower when compared to Q4 2025 and 16% lower compared to Q1 2025, due to lower grades of copper (from 1.45% to 1.15%), silver (from 21g/ton to 17g/ton) and gold (from 0.8g/ton to 0.7g/ton), due to mine sequencing and according to the Company’s plan. During the quarter, Aranzazu sold 16,218 GEO, 9% lower than last quarter. Sales exceeded production due to the timing of revenue recognition of the final 2025 shipment.At Minosa, production totaled 17,399 GEO in Q1 2026, 2% lower than Q4 2025 and in line with Q1 2025, mainly as a result of lower gold extraction during the period, but consistent with Aura’s expectations. In terms of sales, Minosa sold 17,456 GEO, 3% above Q4 2025 and same level of Q1 2025, mainly due to the shipping schedule of gold from December 2025.At Almas, production reached 15,838 GEO, representing a 21% increase compared to Q1 2025 and remaining in line with Q4 2025 levels. This performance was driven by higher ore throughput and improved mine performance, reflecting the benefits of the plant expansion, which more than offset lower grades during the period as result of mine sequencing. In the quarter, Almas sold 14,048 GEO, lower than production as the last shipment of the quarter is in transit to the refinery.At Apoena, production was 7,525 GEO, 20% lower than Q1 2025 and 16% than Q4 2025, primarily driven by lower ore throughput and recovery rates, in line with the Company’s mine plan. According to mine sequencing, production is expected to increase towards the last quarters of the year. In Q1 2026, Apoena sold 7,525 GEO, consistent with its mine sequencing and lower grades during the fist half of the year.At Borborema, production totaled 17,101 GEO, representing a 9% increase compared to the previous quarter, reflecting continued progress along the ramp-up curve and higher milling throughput. In the quarter, Borborema sold 16,609 GEO, a 5% increase compared to the previous quarter.At MSG, production totaled 8,580 GEO, with sales of 9,508 GEO. As part of the ongoing turnaround at the mine, Aura dedicated Q1 to critical underground infrastructure upgrades — a fundamental step that will continue throughout the year and enable more consistent development and higher production levels in the coming years. Production Results

Preliminary GEO45 production volume for the three months ended March 31, 2026, when compared to the previous quarter and the same period of the previous year is presented below by operating mine:

 Q1 2026Q1 2025Q4 2025% change
vs. Q1 2025% change
vs. Q4 2025Ounces produced (GEO)     Aranzazu15,69420,45618,878-23%-17%Minosa17,39917,65417,818-1%-2%Almas15,83813,10115,87221%0%Apoena7,5258,8768,961-15%-16%Borborema17,101-15,777n.a. 8%MSG18,580-4,761  Total GEO produced - Current Prices82,13760,08782,06737%0%      Total GEO produced - Constant Prices82,13758,36081,64541%1%      Total GEO produced - Guidance Prices81,55458,02181,32041%0% 1 December 2025 only

The table below shows production by each type of metal at Aranzazu.

 Q1 2026Q1 2025Q4 2025% change
vs. Q1 2025% change
vs. Q4 2025      Gold Production (oz)5,2686,3746,158-17%-14%Silver Production (oz)102,510130,899126,712-22%-19%Copper Production (klbs)6,9858,4618,474-17%-18%Molybdenum Production (Klbs)63086n.a. -26%Total GEO produced - Current Prices15,69420,45618,878-23%-17%      Total GEO produced - Constant Prices15,69418,72918,456-16%-15%
The chart below displays the consolidated quarterly GEO production measured at current and constant prices since Q1 2023, as well as the last twelve months at the end of each reporting period:

Qualified Person

The scientific and technical information contained in this press release has been reviewed and approved by Farshid Ghazanfari, P.Geo., Geology and Mineral Resources Manager, an employee of Aura and a “qualified person” within the meaning of NI 43-101 and SK-1300.

About Aura 360° Mining

Aura is focused on mining in complete terms – thinking holistically about how its business impacts and benefits every one of our stakeholders: our company, our shareholders, our employees, and the countries and communities we serve. We call this 360° Mining. 
Aura is a company focused on the development and operation of gold and base metal projects in the Americas. The Company's six operating assets include the Minosa gold mine in Honduras; the Almas, Apoena, Borborema and MSG gold mines in Brazil; and the Aranzazu copper, gold, and silver mine in Mexico. Additionally, the Company owns Era Dorada, a gold project in Guatemala; Tolda Fria, a gold project in Colombia; and three projects in Brazil: Matupá, which is under development; São Francisco, which is in care and maintenance; and the Carajás copper project in the Carajás region, in the exploration phase.

The information contained in this press release is preliminary in nature and is provided for informational purposes only. It is based on current estimates, assumptions, and expectations, which remain subject to ongoing review, verification, and possible revision. Final Q1 2026 Production Results may differ from those set forth herein, and no assurance is given as to the accuracy or completeness of the information at this stage. Readers are cautioned not to place undue reliance on this preliminary results.

Forward-Looking Information

This press release contains “forward-looking information” and “forward-looking statements”, as defined in applicable securities laws (collectively, “forward-looking statements”) which may include, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as “plans,” “expects,” “is expected,” “budget,” “scheduled,” “estimates,” “forecasts,” “intends,” “anticipates,” or “believes” or variations (including negative variations) of such words and phrases, or state that certain actions, events or results “may,” “could,” “would,” “might” or “will” be taken, occur or be achieved.

Known and unknown risks, uncertainties and other factors, many of which are beyond the Company’s ability to predict or control, could cause actual results to differ materially from those contained in the forward-looking statements. Specific reference is made to the most recent Annual Information Form on file with certain Canadian provincial securities regulatory authorities and to the Company’s Form F-1 filed with the U.S. Securities and Exchange Commission (“SEC”) for a discussion of some of the factors underlying forward-looking statements, which include, without limitation, volatility in the prices of gold, copper and certain other commodities, changes in debt and equity markets, the uncertainties involved in interpreting geological data, increases in costs, environmental compliance and changes in environmental legislation and regulation, interest rate and exchange rate fluctuations, general economic conditions and other risks involved in the mineral exploration and development industry as described in filings with Canadian securities regulators and the SEC. Readers are cautioned that the foregoing list of factors is not exhaustive of the factors that may affect the forward-looking statements.

All forward-looking statements herein are qualified by this cautionary statement. Accordingly, readers should not place undue reliance on forward-looking statements. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law. If the Company does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements.

1 Gold equivalent ounces, or GEO, is calculated by converting the production of silver, copper and molybdenum into gold using a ratio of the prices of these metals to that of gold. The prices used to determine the GEO are based on the weighted average price of silver, copper and molybdenum realized from sales at the Aranzazu Mine during the relevant period.
2 Applies the metal sale prices in Aranzazu realized during Q1 2026: Copper price = US$5.80/lb; Gold Price = US$4,850/oz; Silver Price = US$83.12/oz and Molybdenum Price = US$25.65/oz.
3 Constant Price" is a method of converting our copper, silver and molybdenum production or sales volume into GEO based on fixed metal prices. This approach eliminates the impact of metal price fluctuations, when comparing production or sales figures across different periods. Using constant prices allows for a consistent and meaningful comparison of gold equivalent production or sales over time. It ensures that differences in GEO production or sales between two periods reflect changes in actual physical metal production or metal sales and not changes due to fluctuations in commodity prices among the periods. GEO at constant price for previous period, to be compared to GEO for current period, is copper production or sales volume previous period multiplied by copper prices current period plus silver production or sales volume for previous period multiplied by silver prices from current period plus molybdenum production or sales volume for previous period multiplied by molybdenum prices from current period divided by gold price for current period.

1 The total may not add due to rounding.
2 Applies the metal sale prices in Aranzazu realized at each relevant quarter.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d7a62d65-627a-4aaf-b0a3-f75c01bbf933

On April 16, 2026, The GEO Group Inc GEO shares rose 3.2% to a current price of $18.16. Over the past month, the stock has experienced a significant rally, gaining 18.1%. However, it remains within a 52-week range of $12.51 to $32.09, reflecting substantial volatility in its price performance.

GF Value™ verdict: Current price of $18.16 is 23.2% above the GF Value™ estimate of $14.74, indicating overvaluation.GF Score™ is 64/100, which is considered above average, suggesting moderate potential for long-term returns.Most notable signal: Insiders have sold $0.1M worth of stock in the last three months, with no buying activity reported. Is GEO Overvalued or Undervalued? According to the GF Value™ analysis, The GEO Group Inc GEO is currently overvalued, with a market price of $18.16, significantly higher than its estimated intrinsic value of $14.74. This discrepancy results in a 23.2% margin of overvaluation, as the market price exceeds the fair value estimate. The GF Valuation label classifies GEO as "Modestly Overvalued," suggesting that while there may be some growth potential, the current price does not reflect a favorable entry point for value-focused investors.

Given that the stock is trading above its intrinsic value, there are risks associated with investing at this level. The margin of safety is limited, and any negative developments in the company’s fundamentals or broader market conditions could lead to a correction in the stock price. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates, and it indicates that investors may want to approach GEO more cautiously.

How Does GEO's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 10.0x 14.1x Forward P/E 15.4x N/A The current P/E ratio of 10.0x is notably below its 5-year median P/E of 14.1x, indicating that the stock is trading at a discount relative to its historical valuation metrics. This P/E analysis supports the GF Value™ verdict that GEO is overvalued, as even though the stock is cheaper than it has been historically, the current market price is still above the estimated intrinsic value, suggesting limited upside potential.

What Does GEO's GF Score™ Tell Us? Metric Rating GF Score™ 64 Financial Strength 5/10 Profitability 7/10 Growth 3/10 Valuation 6/10 Momentum 1/10 The GF Score™ of 64/100 suggests that GEO has an above-average potential for long-term returns. The strongest area is profitability, with a score of 7/10, indicating that the company has been effective at generating profits. However, the growth rank of 3/10 and momentum rank of 1/10 are concerning, as they indicate weaker performance in terms of growth prospects and recent price trends. Overall, while there are areas of strength, the weaker growth and momentum metrics may deter some investors.

What Are Insiders Doing with GEO Stock? In the past three months, insiders at The GEO Group Inc have sold $0.1M worth of shares, with no reported buying activity. This pattern of insider selling can be interpreted as a lack of confidence in the stock's future performance from those closest to the company. While insider selling does not necessarily indicate a negative outlook, it can raise questions about the company’s short-term prospects and may signal that insiders believe the current price is favorable for selling.

What This Means for Investors Based on the GF Value™ assessment, The GEO Group Inc GEO is currently overvalued at a price of $18.16 compared to its estimated fair value of $14.74. With limited margin for safety and concerning insider activity, potential investors may want to exercise caution before entering this position.

For the complete analysis, visit the The GEO Group Inc GEO stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is GEO's GF Score™?

GEO's GF Score™ is 64/100, indicating above-average potential for long-term returns based on various financial metrics.

Is GEO overvalued or undervalued?

GEO is currently overvalued, with a market price of $18.16 that exceeds its GF Value™ estimate of $14.74 by 23.2%.

What is GEO's P/E ratio?

GEO's P/E ratio is 10.0x, which is 29% below its 5-year median of 14.1x, suggesting that it is trading at a discount relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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Earnings Release Scheduled for Wednesday, May 6, 2026 Before the Market OpensConference Call Scheduled for Wednesday, May 6, 2026 at 11:00 AM (Eastern Time) BOCA RATON, Fla.--(BUSINESS WIRE)--The GEO Group, Inc. (NYSE:GEO) ("GEO") will release its first quarter 2026 financial results on Wednesday, May 6, 2026 before the market opens. GEO has scheduled a conference call and simultaneous webcast for 11:00 AM (Eastern Time) on Wednesday, May 6, 2026.

To participate in the teleconference, please contact one of the following numbers 5 minutes prior to the scheduled start time:

1-877-250-1553 (U.S.)
1-412-542-4145 (International)

In addition, a live audio webcast of the conference call may be accessed on the Webcasts section of GEO's investor relations home page at investors.geogroup.com. A webcast replay will remain available on the website for one year.

A telephonic replay will also be available through May 13, 2026. The replay numbers are 1-855-669-9658 (U.S.) and 1-412-317-0088 (International). The passcode for the telephonic replay is 8366763. If you have any questions, please contact GEO at 1-866-301-4436.

More News From The GEO Group, Inc.

Back to Newsroom

Key Takeaways Aura Minerals is set to report Q1'26 earnings on May 6; 443.2% year-over-year growth is expected. AUGO reported a record 82,137 GEO output, up 37% year over year on strong mine performance. Aura Minerals saw growth from Borborema and Almas, despite site-specific production fluctuations. Aura Minerals Inc. (AUGO - Free Report) is expected to post year-over-year growth in earnings when it reports first-quarter 2026 results on May 6, after market close.

The consensus mark for earnings has moved up over the past seven days to $2.01 per share for the quarter. The figure indicates solid 443.2% year-over-year growth.

Image Source: Zacks Investment Research

AUGO’s Earnings Surprise HistoryAUGO’s earnings performance has been negative in the recent quarters. Earnings missed the Zacks Consensus Estimate in two trailing quarters, delivering an average negative surprise of 28%.

Aura Minerals Inc. Price, Consensus and EPS SurpriseWhat the Zacks Model Unveils for AUGOOur proven model does not conclusively predict an earnings beat for AUGO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, but that is not the case here.

Earnings ESP: The Earnings ESP for AUGO is 0.00%. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

Zacks Rank: AUGO currently has a Zacks Rank of 4 (Sell).

You can see the complete list of today’s Zacks #1 Rank stocks here.

Factors Likely to Have Shaped AUGO's Q1 PerformanceAura Minerals entered the first quarter of 2026 with strong operational momentum, and this was clearly reflected in its production performance. The company reported record preliminary output of about 82,137 gold-equivalent ounces (GEO) for the first quarter, representing a 37% year-over-year increase and roughly stable performance sequentially compared with the fourth quarter of 2025. 

The production growth was aided by multiple operating mines and ongoing ramp-ups. Operations across Aranzazu, Minosa, Almas, Apoena, Borborema and MSG collectively supported output, with newer or expanding assets like Borborema and Almas playing an important role in lifting volumes. 

Certain mine-specific factors shaped the quarterly production mix. Output at some sites, such as Aranzazu and Apoena, was affected by mine sequencing and lower grades, while MSG saw temporary impacts from underground infrastructure upgrades. These operational adjustments are typical in mining cycles and suggest that while total production remained strong, the internal mix of volumes and costs may have fluctuated during the quarter. 

Aura’s ongoing expansion and development pipeline continued to underpin performance. Projects such as Borborema expansion and Almas underground development supported capacity growth. The company’s disciplined focus on ramp-ups, infrastructure upgrades and portfolio optimization appears to have been a major driver of first-quarter output strength. 

The broader mining industry in the first quarter of 2026 benefited from relatively supportive commodity demand and continued investor interest in precious metals as a hedge against economic uncertainty. Currency movements in Latin American operating regions and inflationary pressures could have affected operating costs and profitability. 

AUGO Stock’s Price Performance & ValuationShares of AUGO are up 249.6% in the past year compared with the industry’s 51.3% growth.

AUGO has outpaced miners like Denison Mines Corp. (DNN - Free Report) , Materion Corporation (MTRN - Free Report) and Nexa Resources S.A. (NEXA - Free Report) , which have gained 166%, 136.6% and 189.7%, respectively, in the past year.

Image Source: Zacks Investment Research

AUGO is trading at a forward 12-momths price/earnings ratio of 6.96X at a discount to industry's 15.01X.

Image Source: Zacks Investment Research

Investment Thesis for AUGO StockAura Minerals’ investment case is anchored in strong execution and visible production growth, as reflected in its record first-quarter 2026 output of more than 82,000 GEOs. The performance underscores the strength of its diversified portfolio, with contributions from multiple mines and continued ramp-ups at newer assets like Borborema and Almas. While grade variability and mine sequencing created some short-term fluctuations in the production mix, these are cyclical rather than structural concerns. Ongoing expansion projects provide clear capacity for further growth. Favorable gold prices and macro uncertainty positioned Aura to sustain momentum.

Final Thoughts: Sell AUGO SharesAura Minerals entered 2026 with strong momentum from its record fourth-quarter 2025 performance, supported by higher production and favorable gold prices. This strength extended into the first quarter of 2026, with production reaching roughly 82,137 gold equivalent ounces. However, the largely flat sequential performance signals that near-term upside may be limited after the recent operational surge. With much of the production growth already realized, the risks from potential cost pressures, commodity price volatility and execution challenges, the risk-reward balance appears less favorable at current levels. Investors may consider selling AUGO shares, as sustaining this pace of performance could prove challenging in the coming quarters.

Geo Group (GEO - Free Report) came out with quarterly earnings of $0.29 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.14 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +50.03%. A quarter ago, it was expected that this private prison operator would post earnings of $0.25 per share when it actually produced earnings of $0.25, delivering no surprise.

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

Geo Group, which belongs to the Zacks Government Services industry, posted revenues of $705.21 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.12%. This compares to year-ago revenues of $604.65 million. The company has topped consensus revenue estimates four 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.

Geo Group shares have added about 13.9% since the beginning of the year versus the S&P 500's gain of 6%.

What's Next for Geo Group?While Geo Group 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 Geo Group 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 $0.28 on $729.55 million in revenues for the coming quarter and $1.18 on $2.96 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, Government Services is currently in the top 40% 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.

Maximus (MMS - Free Report) , another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This government health services provider is expected to post quarterly earnings of $2.03 per share in its upcoming report, which represents a year-over-year change of +1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Maximus' revenues are expected to be $1.34 billion, down 1.3% from the year-ago quarter.

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Geodrill Limited (GEO:CA) Shareholder/Analyst Call Prepared Remarks Transcript

LONG BEACH, Calif., May 21, 2026 (GLOBE NEWSWIRE) -- Rocket Lab Corporation (Nasdaq: RKLB) a leading launch and space systems company, today announced it has been awarded a $90 million contract by the U.S. Space Force's Space Systems Command (SSC) to design, manufacture, integrate, and operate two geostationary (GEO) satellites hosting the Heimdall space domain awareness (SDA) payload.

The award represents Rocket Lab's first satellite production program for geostationary orbit and extends the Company's vertically integrated mission model into a new orbital regime. Rocket Lab will serve as prime contractor and end-to-end mission provider, responsible for spacecraft design and manufacture, integration of the in-house Heimdall optical payload produced by Rocket Lab Optical Systems, launch integration onto a government-furnished launch vehicle, and on-orbit operations for up to five years following commissioning.

The two satellites will be built on Rocket Lab's Lightning bus, adapted for the thermal, radiation, propulsion, and station-keeping demands of GEO. Lightning is currently in production across multiple national security programs, including SDA's Tranche 2 Transport Layer-Beta (T2TL-Beta) and Tranche 3 Tracking Layer (TRKT3), as well as commercial constellations. The GEO configuration extends that production heritage while preserving the manufacturing efficiencies and supply chain advantages of Rocket Lab's vertically integrated approach.

The contract builds on the success of a Space Systems Command program that began with the prototype development of two Heimdall space-based payloads originally awarded to GEOST, which Rocket Lab acquired in 2025 and integrated as Rocket Lab Optical Systems. The prototype phase developed two Heimdall payloads as small, low-cost electro-optical sensors designed to be hosted on satellites in geosynchronous orbit, augmenting the Space Force's ability to maintain custody of objects in the GEO belt. The new $90 million award transitions the program from payload prototyping to operational space vehicle delivery.

Rocket Lab will perform spacecraft assembly, integration, and test at its Long Beach, California Spacecraft Production Complex, with payload delivery from Rocket Lab Optical Systems and mission operations conducted from Rocket Lab facilities following launch.

+ Rocket Lab Media Contact
Morgan Connaughton
[email protected]

+ About Rocket Lab
Rocket Lab is a leading space company that provides launch services, spacecraft, payloads and satellite components serving commercial, government, and national security markets. Rocket Lab’s Electron rocket is the world’s most frequently launched orbital small rocket; its HASTE rocket provides hypersonic test launch capability for the U.S. government and allied nations; and its Neutron launch vehicle in development will unlock medium launch for constellation deployment, national security and exploration missions. Rocket Lab’s spacecraft and satellite components have enabled more than 1,700 missions spanning commercial, defense and national security missions including GPS, constellations, and exploration missions to the Moon, Mars, and Venus. Rocket Lab is a publicly listed company on the Nasdaq stock exchange (RKLB). Learn more at www.rocketlabcorp.com.

+ Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our launch and space systems operations, launch schedule and window, safe and repeatable access to space, Neutron development, operational expansion and business strategy, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “potential,” “continue,” “anticipate,” “intend,” “expect,” “strategy,” “future,” “could,” “would,” “project,” “plan,” “target,” and similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to the factors, risks and uncertainties included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as such factors may be updated from time to time in our other filings with the Securities and Exchange Commission (the “SEC”), accessible on the SEC’s website at www.sec.gov and the Investor Relations section of our website at https://investors.rocketlabcorp.com which could cause our actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change.

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bdfd4074-557e-4b11-a124-5bcc0d33f28b

Rocket Lab's Lightning Spacecraft Production Line Rocket Lab has been awarded a $90 million contract by the U.S. Space Force's Space Systems Command (...

Gold equivalent production of 12,842 Gold Equivalent Ounces (“GEO”) at AISC of $1,348/oz Au during Q1 2026Record Adjusted EBITDA of $28.7 million for Q1 2026, benefiting from unhedged gold positionStrong Cash Position of $31.4 million at quarter endFull year production guidance of 50,000-60,000 GEO maintained Exploration programs progressing as plannedContinued progress at both the Lagoa Salgada and Mont Sorcier projectsRecent Acquisition of Falcon properties positions MDN for the longer termManagement to host conference call on May 28th, 11:00 AM EDT TORONTO, May 27, 2026 (GLOBE NEWSWIRE) -- Cerrado Gold Inc. [TSX.V:CERT][OTCQX:CRDOF; FRA:BAI0] (“Cerrado” or the “Company”) announces its operational and financial results for the first quarter 2026 (“Q1/26”), including its Minera Don Nicolas (“MDN”) gold mine in Santa Cruz Province, Argentina, its Lagoa Salgada Polymetallic Project in Portugal, and its Mont Sorcier High Purity DRI Iron Project in Quebec.

Production results for MDN were previously released on April 20, 2026. The Company’s financial results are reported and available on SEDAR+ (www.sedarplus.com) and the Company’s website (www.cerradogold.com).

Q1/26 MDN Operating Highlights:

Q1 Production of 12,842 vs 11,163 GEO in Q1 2025Heap leach production of 8,787 GEO continues to increase as water availability improvesUnderground development work continued at an accelerated pace, with record development meters during the periodAccess to new underground ore zones expected in Q2 2026, delivering higher-grade ore to the CIL plant, improving head feed grade, and increasing productionCIL plant continues to process a blend of stockpile material and additional ore from underground development, resulting in total production of 4,055 GEO in Q1 through the CIL plant
Operational results for Q1 2026 showed production remained consistent relative to the previous quarter. Production rates increased at the heap leach versus the previous quarter; however, irrigation issues continued to have an impact on production. Water availability continues to improve as we move into the wetter months and remains supported by ongoing purchases and additional water from expanded borehole water production. As more water for irrigation becomes available, the gold inventory on the pad that has not been fully irrigated will be recovered over time. Average recovery rates remained lower than planned due to the mix of primary ore placed on the leach pads as per the mine sequence, as well as reduced irrigation. This was offset by steady production from the CIL plant, maintaining overall production rates. Unit costs per ounce of gold produced declined to $1,348/oz Au, a significant reduction relative to the prior quarters due to the increase in silver credits, which more than offset water and other related costs due to ongoing inflationary pressures in Argentina.

The focus on underground development continued during the quarter, which reduced the ore available for immediate processing, but the increased development will allow access to more material amounts of ore during the coming quarters and is expected to lift production and improve head grades to the plant during Q2 and Q3. During 2026, underground ore operations are expected to follow a cycle of development and then ore extraction, as the underground workings follow the ore zone deeper under the current pit.  

The Company continues to advance its exploration program at MDN, focused on near-mine targets with the potential to materially extend resources and extend mine life. This includes supporting medium-term operational sustainability through high-grade underground feed to the CIL plant, as well as increasing resources available for heap leach processing.

At Lagoa Salgada, the Company continued work on progressing an Optimized Feasibility Study, while pursuing permitting and project financing. As described further in the MD&A, the Company continues to work through permitting issues related to its Environmental Impact Assessment (“EIA”) submissions through various government officials and through the courts in Portugal. The Company has secured an interim injunction, which temporarily suspends the effects of the unfavourable opinion pertaining to the EIA. While these processes continue, during 2026, the Company plans to continue to advance the Optimized Feasibility study and the RECAPE engineering phase to bring the project to a construction ready decision once the permitting issue is resolved. As such, the Company currently believes commencement of construction could occur in H2/2027, subject to permits being issued and financing secured.

In Canada, at the Company’s Mont Sorcier High grade, 67%, Iron project, work continued on delivering a Bankable Feasibility study. The Company expects to release the results of a Bankable Feasibility study by the end of Q2 2026, and it now anticipates submitting the Environmental and Social Impact Assessment in early Q1 2027. As a result, permits are now expected no earlier than around year end 2028, suggesting construction could commence around the end of Q1/2029 due to the winter season. We note that recent comments by policymakers indicate a desire to accelerate the permitting process; however, no clear timeline for how this will impact Mont Sorcier is available at this time.

The Mont Sorcier project is being designed as an 8 Mtpa concentrate operation, compared with 5 Mtpa in the PEA, to reflect strong demand for high-grade 67% iron concentrates with low silica and alumina suitable for the direct reduction iron (DRI) or pellet feed markets, the fastest growing segments of the iron ore market for which premium prices are expected. Development is expected to occur in two phases, with Phase 1 producing 4 Mtpa and a second 4 Mtpa expansion targeted approximately three years after start-up.

Mark Brennan, CEO and Chairman commented, "Results for the first quarter highlighted steady production and record strong cash flows for the quarter. We expect this to be sustained going forward, given the previous operational upgrades, sustained high gold prices, and our unhedged position. The strong cash flow generated from operations continues to build our cash balance, while we continue to strategically deploy capital for exploration and development of our project pipeline. Advances at the Lagoa Salgada Polymetallic Project and at the High-grade Mont Sorcier DRI Iron Project continue to strengthen our belief that there is significant value to be unlocked in these projects as the respective Feasibility Studies are completed in the near term.

Q1 Financial Performance

Table 1. Q1 2026 Operational and Financial Performance 

          Three months ended MarchKey Operating Information Unit20262025 Operating Data     Heap Leach Operations     Ore Mined ktonnes785.15658.67 Waste Mined ktonnes983.931,024.25 Total Mined ktonnes1,769.081,682.93 Strip Ratio waste/ore1.251.56 Mining rate ktpd19.6618.70       Ore placed on pad ktonnes801.37693.00 Head Grade Au g/t0.850.80 Head Grade Ag g/t12.2215.95 Recovery Au %33%39% Recovery Ag %26%8%       Gold Ounces Produced oz7,2576,897 Silver Ounces Produced oz82,51329,666 Gold Equivalent Ounces Produced oz8,7877,228       High Grade CIL Operations     Ore Mined ktonnes16.4211.39 Waste Mined ktonnes22.2859.54 Total Mined ktonnes38.7070.93 Strip Ratio waste/ore1.365.23 Mining rate ktpd0.430.79       Ore Milled ktonnes101.7791.52 Head Grade Au g/t1.341.51 Head Grade Ag g/t8.386.44 Recovery Au %89%92% Recovery Ag %52%54%       Mill Throughput tpd1,1311,017 Gold Ounces Produced oz3,7403,821 Silver Ounces Produced oz17,03310,298 Gold Equivalent Ounces Produced oz4,0553,936             Consolidated Gold Production     Gold Ounces Produced oz10,99710,718 Silver Ounces Produced oz99,54639,965 Gold Equivalent Ounces Produced oz12,84211,163 Gold Ounces Sold oz10,68610,992 Silver Ounces Sold oz93,94842,623 Gold Equivalent Ounces Sold oz12,41511,468       Average realized price and Average realized margin     Metal Sales $ 000's53,01928,816 Cost of Sales $ 000's29,04626,552 Gross Margin from Mining Operations $ 000's23,9732,264       Average realized price per gold ounce sold(1)$/oz4,2352,520 Total cash costs per gold ounce sold(1)$/oz1,2771,902 Average realized margin per gold ounce sold(1)$/oz2,959618       Total Direct Operating Costs(1)$ 000's12,20519,709 Royalties and production taxes(1)$ 000's1,4381,196 Total Cash Costs(1)$ 000's$13,643$20,905       Total direct operating costs per gold ounce sold(1)$/oz1,1421,793 Royalties and production taxes per gold ounce sold(1)$/oz135109 Total cash costs per gold ounce sold(1)$/oz$1,277$1,902       AISC - Minera Don Nicolas(1)$/oz$1,348$1,932(1)This is a non-IFRS performance measure, see non-IFRS Performance Measures                       Three months ended MarchCorporate Financial Highlights Unit20262025       Financial Data     Total revenue $ 000's53,01928,816 Mine operating expenses $ 000's29,04626,552 Income (loss) from mining operations $ 000's23,9732,264 Net income (loss) from operations $ 000's12,881(4,152) Adjusted EBITDA(1)$ 000's28,7394,818 Operating cash flow before movements in working capital(1)$ 000's20,3735,426 Operating cash flow $ 000's17,2157,439 Cash and cash equivalents $ 000's31,42220,127 Working capital (deficiency) $ 000's(37,570)(13,019) Capital Expenditures $ 000's16,9083,018(1)This is a non-IFRS performance measure, see non-IFRS Performance Measures         The Company produced 12,842 gold equivalent ounces (“GEO”) during the three months ended March 31, 2026, as compared to 11,163 GEO for the three months ended March 31, 2025. In the period ended March 31, 2026, heap leach production was 22% higher compared to the prior year due to 6% higher gold head grade, significantly higher silver recoveries, and 108,370 additional tonnes placed on the pad. MDN’s focus moved from depleted resources at Calandrais Norte towards heap leach operations in 2025 and 2026.

The Company generated revenue of $53.0 million for the three months ended March 31, 2026, from the sale of 10,686 ounces of gold and 93,948 ounces of silver at an average realized price per gold ounce sold of $4,235 and an average realized price per silver ounce sold of $83. For the three months ended March 31, 2025, the Company generated revenue of $28.8 million from the sale of 10,992 ounces of gold and 42,623 ounces of silver. Revenue is higher for the three months ended March 31, 2026, as compared to the three months ended March 31, 2025, due primarily to higher average realized gold and silver prices.

Cost of sales for the three months ended March 31, 2026, were $29.0 million as compared to $26.6 million for the three months ended March 31, 2025. The Company incurred $0.9 million lower production costs for the three months ended March 31, 2026, consistent with the prior year. The Company incurred a $0.2 million increase in sales expenses and a $3.1 million increase in depreciation expenses compared to 2025.

Total cash costs (including royalties) per ounce of gold sold were $1,277 per ounce in the three months ended March 31, 2026, as compared to $1,902 per ounce for the three months ended March 31, 2025, a $625 per ounce or 33% decrease (refer to reconciliation of Non-IFRS performance metrics). The decrease is primarily a result of an increase in silver by-product credits, due to a 178% increase in silver ounces produced as compared to 2025.

Net income from operations for the three months ended March 31, 2026, was $12.9 million as compared to a net loss of $4.2 million for the three months ended March 31, 2025. The increase in net income is primarily a result of a $24.2 million increase in revenue, a decrease in the loss on remeasurement of MDN stream obligation of $3.4 million, and a decrease in the loss on remeasurement of Ascendant secured note and stream obligation of $1.2 million offset by a $3.8 million increase in income taxes as well as a $2.9 million increase in foreign exchange loss.

The Company incurred general and administrative expenses of $5.1 million for the three months ended March 31, 2025, compared with the $2.1 million of general and administrative expenses incurred during the three months ended March 31, 2025. An increase is primarily a result of an increase in share-based compensation of $2.1 million compared to 2025.

Other loss of $1.5 million during the three months ended March 31, 2026, includes finance expense of $0.8 million and foreign exchange loss of $2.9 million, offset by gain on fair value remeasurement of Ascendant secured note and stream obligation of $1.2 million and finance income of $0.3 million

Outlook

Looking towards the remainder of 2026 and beyond, Cerrado anticipates Heap Leach operations to continue to benefit from the recent improvements in crushing infrastructure to grow and improve production rates. At the CIL plant, the focus remains on increasing the rate of underground high grade ore, supporting increased production rates from the plant, and supplementing the lower grade stockpiles. Combined, these are expected to support higher production rates in the second half of the year and generate strong cash flows, given the current gold price environment and our now unhedged position.

The Company maintains its 2026 annual production guidance to 50,000 – 60,000 GEO. Management continues to expect overall costs to decline as production continues to ramp up in the coming quarters.

Exploration and resource growth remain a key focus at MDN to extend the mine life. During Q1/26, all four new drill rigs commenced operation. The underground drilling is expected to commence shortly, with the rig scheduled to arrive in late June. Furthermore, the Company is working to certify the lab at site, which will help shorten assay times. The focus at MDN is currently on growing the known resources at MDN beyond those outlined in the most recent Mineral Resource Estimate (“MRE”). The Company expects to be in a position to provide a summary of results in the near term once complete assays have been received.

Subsequent to the end of the quarter, on May 26, 2026, the Company announced the acquisition of the Falcon properties located adjacent to the Las Calandrias heap leach operations at Minera Don Nicolas (see press release dated May 26, 2026). An internal target for exploration outlined during the due diligence process indicates a potential of 150–200koz/Au, with projected grades ranging from 0.8 to 1.1 g/t. At this time, the potential quantity and grade are conceptual in nature; there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the target being delineated as a mineral. The Company plans to commence a 5,000 metre definition and exploration drill program immediately to support this assessment. The Falcon properties consist of approximately 20,026 ha of land adjacent to MDN’s gold mine property, most notably near the Calandrias heap leach operations.

Conference Call Registration and Webcast Details

Cerrado Management will host a conference call and Webcast on May 28, 2026, at 11:00 AM EDT to discuss the Q1 2026 Financial and Operational results. The presentation for the call can be found on the investor page on Cerrado Gold’s website at www.cerradogold.com on the morning of May 28, 2026.

Webcast details:

For those who wish to participate via webcast, please navigate to the link below to join:

Announcement of IR Services Contract with Atrium Research

The Company also announces it has engaged the services of Atrium Research Corporation ("Atrium"), a leading company-sponsored research firm. Atrium will publish various research reports on Cerrado based on publicly available information, industry data, and discussions with management. Atrium will also host two recorded interviews with Cerrado’s management team to present the investment case in an interview format. In exchange for its research services, Atrium will receive cash compensation in the amount of $12,600 per quarter for the services listed above. The services will be provided for 18 months beginning on June 1st, 2026. At the end of the Term, the agreement will be deemed to remain in place and be extended on a quarter-to-quarter basis at $12,600 per quarter, unless otherwise agreed to by the parties or the agreement is terminated by either party. This engagement is subject to TSXV approval.

Atrium and the Company are arm's-length parties, and neither Atrium nor its insiders holds any shares or options to purchase shares in the issued and outstanding capital of the Company.

Review of Technical Information
The scientific and technical information in this press release has been reviewed and approved by Andrew Croal P.Eng, Chief Technical Officer for Cerrado Gold, who is a Qualified Person as defined in National Instrument 43-101.

About Cerrado

Cerrado Gold is a Toronto-based gold production, development, and exploration company. The Company is the 100% owner of the producing Minera Don Nicolás and Las Calandrias mine in Santa Cruz province, Argentina. In Portugal, the Company holds an 80% interest in the highly prospective Lagoa Salgada VMS project through its position in Redcorp - Empreendimentos Mineiros, Lda. In Canada, Cerrado Gold is developing its 100% owned Mont Sorcier Iron project located outside of Chibougamau, Quebec.

In Argentina, Cerrado is maximizing asset value at its Minera Don Nicolas operation through continued operational optimization and is growing production through its operations at the Las Calandrias heap leach project. An extensive campaign of exploration is ongoing to further unlock potential resources in our highly prospective land package in the heart of the Deseado Masiff.

In Portugal, Cerrado focused on the exploration and development of the highly prospective Lagoa Salgada VMS project located on the prolific Iberian Pyrite Belt in Portugal. The Lagoa Salgada project is a high-grade polymetallic project, demonstrating a typical mineralization endowment of zinc, copper, lead, tin, silver, and gold. Extensive exploration upside potential lies both near the deposit and at prospective step-out targets across the large 7,209-hectare property concession. Located just 80km from Lisbon and surrounded by exceptional infrastructure, Lagoa Salgada offers a low-cost entry to a significant exploration and development opportunity, already showing its mineable scale and cashflow generation potential.

In Canada, Cerrado is developing its 100% owned Mont Sorcier high-purity, high-grade, Direct Reduced Iron project, located on the traditional Cree territory of Eeyou Istchee James Bay in the municipality of Chibougamau. The Mont Sorcier high purity, high grade DRI Iron project, which has the potential to produce a premium iron concentrate over a long mine life at low operating costs and low capital intensity. Furthermore, its high grade and high purity product facilitates the migration of steel producers from blast furnaces to electric arc furnaces, contributing to the decarbonization of the industry and the achievement of sustainable development goals.

For more information about Cerrado please visit our website at: www.cerradogold.com.

Mark Brennan                        
CEO and Chairman        

Mike McAllister
Vice President, Investor Relations
Tel: +1-647-805-5662
[email protected]                                

Disclaimer

NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

This press release contains statements that constitute “forward-looking information” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that discusses predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements.

Forward-looking statements contained in this press release include, without limitation, statements regarding the business and operations of Cerrado, future production guidance, expectations regarding exploration success and resource expansion and the potential of the recently acquired Falcon property, anticipated continued improvements in operating results, working capital position and deleveraging of the balance sheet, future production and grade estimates, future cashflows, expectations regarding the CIL plant processing lower grade stockpiles and higher grade underground material, the potential for improvement at MDN’s heap leach operation, expectations regarding improvements in operating costs at MDN including reduction in AISC, the expectation of additional capacity being added at the heap leach operation, the potential of underground operation at MDN and the potential for the underground operation to provide a platform for major exploration activities at lower cost, the timing of additional drill rigs to be added to MDN for exploration and the timing of release of assay results related thereto, the anticipated timing of completing the feasibility study at the Mont Sorcier project and Lagoa Salgada project, the potential for a construction decision at Lagoa Salgada and the expected timing and likelihood of receiving approval of the environmental impact assessment at Lagoa Salgada. In making the forward- looking statements contained in this press release, Cerrado has made certain assumptions. Although Cerrado believes that the expectations reflected in forward-looking statements are reasonable, it can give no assurance that the expectations of any forward-looking statements will prove to be correct. Known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this press release. Except as required by law, Cerrado disclaims any intention and assumes no obligation to update or revise any forward-looking statements to reflect actual results, whether as a result of new information, future events, changes in assumptions, changes in factors affecting such forward-looking statements or otherwise.

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