Companies

Designer Brands posts weak first quarter, withdraws full year outlook

Jun 12, 2025 United States

The Ohio-based company has posted weak results in the first quarter. Due to ongoing instability and pressure on consumer discretionary spending, it has also withdrawn its full year outlook

“We experienced a soft start to 2025 amid an unpredictable macro environment and deteriorating consumer sentiment. We have shifted our near-term focus to amplifying value in our retail channels, preserving margins, controlling costs, and mitigating the impact of tariffs as part of our response to this volatility. Thanks to our team's focus and discipline, we expect to deliver between 20 million to 30 million US dollars in cost savings over the course of 2025”, commented Doug Howe, Chief Executive Officer.

First Quarter Results

In the first quarter of fiscal 2025, which ended on the 3^rd of May, the company’s net sales totalled 686.9 million US dollars, a decrease of 8.0% as compared to the same period of last year. During the period, total comparable sales decreased by 7.8% year-over-year.

On a comparable basis to the first quarter of 2024, the US retail segment recorded a 7.7% net sales decline to 573.2 million US dollars, while the Canadian retail segment recorded a 2.9% net sales decline to 53.9 million US dollars. Meanwhile, the brand portfolio saw a 7.9% decline in net sales to 95.9 million US dollars.

Designer Brands reported a decrease in gross profit to 295.1 million US dollars from 330.0 million US dollars in the first quarter of last year, with the gross margin narrowing from 44.2% to 43.0%.

In the first quarter of the current fiscal year, the company reported a net loss of 17.4 million US dollars, equivalent to a diluted loss of 0.36 US dollars per share. This contrasts with a net income of 783 thousand US dollars, equivalent to 0.01 US dollars per diluted share, in the same period a year ago.

At the end of the period, Designer Brands’ debt increased from 476.1 million to 522.9 million US dollars, while inventory levels remained fairly stable at 623.6 million US dollars compared to 620.5 million US dollars.

Full Year Outlook

“Given the persistent instability and pressure on consumer discretionary spend, we’ve made the decision to withdraw our 2025 guidance for the time being”, announced Howe. Moving forward, the company will focus on the disciplined execution of initiatives within our control and on building a business that is “rooted in the strength of our brand, centered on the customer, and positioned for long-term value creation”.

Image Credits: designerbrands.com

United States Companies Designer Brands Footwear Quarter Results Results