Companies

Designer Brands reiterates full-year outlook

Jun 10, 2026 United States

The parent company of the DSW retail chain has reported a solid start to the year, with signs of stabilisation in the retail segment and increased profitability. Consequently, it has reaffirmed its full-year outlook

“Our strong start to the year was underscored by double-digit sales growth in our Brand Portfolio segment and encouraging stabilization in our Retail segment”, said Doug Howe, Chief Executive Officer. “In addition to top-line strength, we delivered meaningful profitability gains, with gross margin expanding 240 basis points, reflecting the structural improvements we have made across inventory management, pricing discipline, sourcing, and channel profitability”, he added.

First-Quarter Results

In the first quarter of the 2026 fiscal year, which ended on the 2^ndof May, Designer Brands recorded net sales of 696.4 million US dollars, a 1.4% increase compared to the same period the previous year. During this period, comparable sales decreased by 1.1%.

Net sales from the company’s brand portfolio totalled 114.5 million US dollars in the first quarter, reflecting a 19.4% year-on-year increase. Meanwhile, net sales from the retail segment amounted to 626.7 million US dollars, reflecting a 0.1% year-on-year decrease.

In the first quarter, the company’s gross profit was 315.3 million US dollars, up from 294.5 million US dollars in the first quarter of the 2025 financial year. The gross margin also improved, rising from 42.9% to 45.3%.

Designer Brands reported a first-quarter net income attributable to the company of 1.16 million US dollars, equivalent to diluted earnings per share of 0.02 US dollars. This is an improvement on the loss of 17.8 million US dollars, equivalent to diluted loss per share of 0.37 US dollars, reported in the same period last year. Adjusted net income was 3.8 million US dollars or adjusted diluted earnings per share of 0.07 US dollars.

By the end of the first quarter of 2026, the total value of cash and cash equivalents had increased to 50.1 million US dollars, up from 46.0 million US dollars a year earlier. Meanwhile, debt and inventories had fallen to 475.3 million and 586.6 million US dollars, respectively.

Full-Year Outlook

“Following our encouraging start to the year, we believe in our ability to achieve the high end of our fiscal 2026 EPS guidance range, even amidst ongoing uncertainty in the macroeconomic environment”, Howe reiterated.

As such, Designer Brands expects its net sales to increase or decrease by between 1% and 1% and anticipates diluted earnings per share of between 0.28 and 0.38 US dollars.

Image Credit: retaildive.com

United States Companies Designer Brands Footwear Quarter Results Results