Companies

Designer Brands posts sequential improvements

Dec 12, 2025 United States

The US-based footwear has posted sequential improvements across key financial metrics in the third quarter, with stronger sales, higher gross profit and increased operating income

“Our third quarter performance represents another meaningful step forward in our transformation, as we demonstrated continued sequential improvement across multiple financial and operating metrics. Stronger consumer demand and improved in-store execution drove improved comparable sales in the third quarter compared to the second quarter. Our team also delivered a meaningful increase in gross profit and diligently managed expenses, which helped drive an increase in operating income over last year”, commented Doug Howe, Chief Executive Officer of Designer Brands.

Third Quarter Results

In the third quarter of the 2025 financial year (which ended on the 1^st of November), the company’s net sales declined by 3.2%, as compared to the same period last year, reaching 752.4 million US dollars. Total comparable basis decreased by 2.4% during this period. Although negative, this performance shows an improvement on the respective declines of 4.2% and 5.0% in the previous quarter.

The US retail segment contributed 610.5 million US dollars, a year-on-year decrease of 0.8%, while the Canadian retail segment contributed 77.3 million US dollars, a year-on-year decrease of 7.5%. Meanwhile, the brand portfolio segment contributed 101.9 million US dollars, a year-on-year decrease of 8.6%.

Designer Brands reported a gross profit of 339.6 million US dollars in the third quarter, which is slightly up from 338.8 million US dollars in the same quarter last year. The gross margin increased to 45.1% from 43.0%.

In the third quarter, the company’s adjusted operating profit increased to 46.4 million US dollars, up from 43.6 million a year earlier. Designer Brands also reported a net income of 18.2 million US dollars attributable to the company, up from 13.0 million US dollars in the third quarter of 2024, equivalent to 0.35 US dollars per diluted share (up from 0.24 US dollars).

Full Year Outlook

The US company expects net sales for the full year to decrease by between 3% and 5%, with an adjusted operating profit of between 50.0 and 55.0 million US dollars.

“I’m encouraged that this positive momentum has extended into the early part of the fourth quarter, reinforcing the progress of our strategic initiatives and positioning us well as we close out the year. While macroeconomic pressures persist, we are confident in our ability to navigate the near-term environment and continue making progress on our long-term strategies”, concluded Howe.

Image Credits: designerbrands.com

United States Companies Designer Brands Footwear Quarter Results Results