Companies

Designer Brands raises full-year 2026 outlook

Sep 15, 2026 United States

The US-based company has raised its outlook for the full year of 2026, having reported improved profitability in the second quarter and strong growth in its Brand Portfolio segment, despite a slight overall sales decline

“Our second quarter results represent significant improvement in profitability year-over-year, highlighted by meaningful gross margin expansion as well as impressive sales growth in our Brand Portfolio segment (…). These efforts have contributed to improved retail trends and a positive start to the third quarter, giving us confidence in raising our full year guidance”, commented Doug Howe, Chief Executive Officer.

For the 2026 financial year, the company now expects net sales to grow by between 0% and 1%, compared to the previous guidance of a decrease of between 1% and an increase of 1%. Adjusted diluted earnings per share are forecast to be between 0.47 and 0.52 US dollars, which is an improvement on the previous guidance of between 0.28 and 0.38 US dollars.

Second-Quarter Results

In the second quarter of the 2026 financial year, which ended on the 1^st of August, Designer Brands reported net sales of 730.6 million US dollars. This was a decrease of 1.2% compared to the same period of the previous financial year, with comparable sales down by 2.4%.

Net sales from the brand portfolio totalled 86.3 million US dollars during the quarter, representing a 17.9% year-on-year increase. Meanwhile, the retail segment generated net sales of 671.1 million US dollars, representing a 2.2% year-on-year decline.

The company’s portfolio includes the footwear brands Keds, Topo Athletic and Vince Camuto. The company also operates the retail chains DSW Designer Shoe Warehouse and The Shoe Company.

In the second quarter of this fiscal year, Designer Brands saw its gross profit rise from 322.5 million US dollars in the same period a year ago to 365.4 million US dollars, with the gross margin rising from 43.6% to 50.0%. Adjusted gross profit also increased, rising from 322.5 million US dollars to 350 million US dollars, equating to an adjusted gross margin of 47.9% compared to 43.6%.

In the three months ending on the 1^st of August, reported net income attributable to the company totalled 17.6 million US dollars, or diluted earnings per share of 0.31 US dollars. This is an increase on the same period of the 2025 fiscal year, when net income totalled 10.5 million US dollars, or diluted earnings per share of 0.21 US dollars.

Meanwhile, second-quarter adjusted net income was 19.2 million US dollars, equivalent to adjusted diluted earnings per share of 0.34 US dollars, compared to 16.4 million US dollars, equivalent to adjusted diluted earnings per share of 0.33 US dollars.

Image Credits: wwd.com/footwear-news

United States Companies Designer Brands Footwear Quarter Results Results