Designer Brands Inc.

DBI: 10-Q · periodic report

Designer Brands posted Q2 FY2026 net sales of $730.6 million, down 1.2% year over year, but net income attributable to the company jumped 66.7% to $17.6 million, or $0.31 per diluted share versus $0.21 a year ago. Gross margin expanded to 50.0% of sales from 43.6%, driving operating profit up 109.3% to $54.7 million despite comparable sales declining 2.4%. For the first six months the company swung from a $7.3 million loss to $18.7 million in net income, and operating cash flow rose to $48.2 million from $1.1 million, helped by $36.8 million of IEEPA tariff recoveries received from U.S. Customs and Border Protection, net of $16.1 million in interest paid to the investor that purchased the tariff refund claims. The filing also discloses immaterial restatements of prior periods after the acquired Topo brand applied incorrect duty rates, creating an estimated $8.4 million obligation in additional duties and interest owed to U.S. Customs and Border Protection. Interest expense more than doubled to $25.4 million in the quarter on the tariff financing arrangement, the effective tax rate climbed to 32.8%, and the Board declared a $0.05 quarterly dividend payable October 7, 2026; the company remains in compliance with all debt covenants with $146.2 million available on its ABL revolver.

SEC 10-Q•1mo ago

Designer Brands Inc. Reports Second Quarter of 2026 Financial Results

Designer Brands posted second quarter 2026 net sales of $730.6 million, down 1.2% year-over-year, with total comparable sales down 2.4%. Brand Portfolio segment sales grew 17.9% to $86.3 million, partially offsetting a 2.2% decline in the retail segment. Profitability improved sharply: GAAP diluted EPS rose to $0.31 from $0.21 a year ago, adjusted diluted EPS came in at $0.34 versus $0.33, and consolidated operating profit more than doubled to $54.7 million. Reported gross margin expanded to 50.0% from 43.6%, though that includes $35.5 million of IEEPA tariff-cost recoveries. Management raised full year 2026 guidance to adjusted diluted EPS of $0.47-$0.52 from $0.28-$0.38, with net sales now expected flat to up 1% instead of down 1% to up 1%, citing a positive start to the third quarter. Total debt was reduced by $93.0 million year-over-year to $423.1 million. The board declared a $0.05 per share dividend for both Class A and Class B shares, payable October 7, 2026 to shareholders of record on September 24, 2026.

•1mo ago

DBI: 10-Q · periodic report

Designer Brands reported net income attributable to the company of $1.2 million, or $0.02 per diluted share, for the quarter ended May 2, 2026, reversing a net loss of $17.8 million in the prior-year period. Net sales increased 1.4% to $696.4 million, driven primarily by growth in the Brand Portfolio segment, which offset a 1.2% decline in Retail segment comparable sales. Gross profit margin expanded significantly to 45.3% from 42.9% in the prior year, contributing to an operating profit of $18.9 million compared to an operating loss of $7.9 million last year. The margin improvement reflects better inventory management and the absence of impairment charges that impacted the prior-year quarter. The company noted liquidity remains adequate with $138.5 million available under its ABL Revolver, though it disclosed immaterial restatements regarding prior periods due to incorrect duty rates on Topo products that had a material impact on current period financials. Total debt outstanding stood at approximately $495.7 million, comprising borrowings under the Revolver, Term Loan, and FILO Term Loan.

SEC 10-Q•4mo ago

Designer Brands Inc. Reports First Quarter 2026 Financial Results

Designer Brands reported Q1 2026 net sales of $696.4 million, a 1.4% increase year-over-year, driven by double-digit growth in its Brand Portfolio segment. Gross margin expanded significantly by 240 basis points to 45.3%, reflecting structural improvements in inventory management and pricing discipline. Adjusted diluted EPS came in at $0.07, exceeding expectations. The company reaffirmed its full-year 2026 guidance of $0.28-$0.38 diluted EPS but expressed confidence in achieving the high end of the range despite macroeconomic uncertainty.

•4mo ago