Gross margin expansion of 240 basis points
Anticipates full year 2026 EPS trending toward the high end of guidance range
COLUMBUS, Ohio, June 9, 2026 /PRNewswire/ -- Designer Brands Inc. (NYSE:DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financial results for the first quarter ended May 2, 2026.
"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."
Howe continued, "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. We believe our strategic actions will continue to strengthen our foundation of the business and position us well for long-term profitable growth."
First Quarter Operating Results (Unless otherwise stated, all comparisons are to the first quarter of 2025)
Net sales increased 1.4% to $696.4 million.
Total comparable sales decreased by 1.1%.
Gross profit increased to $315.3 million versus $294.5 million last year, and gross margin was 45.3% compared to 42.9% last year.
Reported net income attributable to Designer Brands Inc. was $1.2 million, or diluted EPS of $0.02.
Adjusted net income was $3.8 million, or adjusted diluted EPS of $0.07.
Liquidity
Cash and cash equivalents totaled $50.1 million at the end of the first quarter of 2026, compared to $46.0 million at the end of the same period last year, with $138.5 million available for borrowings under our senior secured asset-based revolving credit facility. Debt totaled $475.3 million at the end of the first quarter of 2026 compared to $522.9 million at the end of the same period last year.
The Company ended the first quarter of 2026 with inventories of $586.6 million compared to $623.6 million at the end of the same period last year.
Store Count
(square footage in thousands)
May 2, 2026
May 3, 2025
Number of Stores
Square Footage
Number of Stores
Square Footage
DSW stores
518
10,150
520
10,237
The Shoe Co. stores
118
599
121
620
Rubino stores
27
140
28
149
Total number of stores
663
10,889
669
11,006
2026 Financial Outlook
The Company is reaffirming the following guidance for the full year 2026:
Metric
2026 Guidance
Designer Brands Change in Net Sales
Down 1% to Up 1%
Diluted Earnings per Share
$0.28 - $0.38
Webcast and Conference Call
The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial-in, 1-412-317-6061, and reference conference ID number 6930887 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com:
https://app.webinar.net/704rZBvZkGJ
For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until June 23, 2026. A replay of the teleconference will be available by dialing the following numbers:
North America: 1-855-669-9658
International: 1-412-317-0088
Passcode: 7496602
Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the website to access this information.
About Designer Brands
Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of being shoe obsessed. With a diversified, world-class portfolio of coveted brands, including Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Lucky Brand, Mix No. 6, Crown Vintage and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions delivered to the consumer through a robust direct-to-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and over 660 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in North America, Designer Brands delivers current, in-line footwear and accessories from the largest national brands in the industry and holds leading market share positions in key product categories across women's, men's, and kids'. Designer Brands also distributes its brands internationally through select wholesale and distributor relationships while also leveraging design and sourcing expertise to build private label products for national retailers. Designer Brands is committed to being a difference maker in the world and the footwear industry. By leading with our corporate values of We Belong and We Do What's Right, Designer Brands supports the global community and the health of the planet by donating more than thirteen million pairs of shoes to the global non-profit Soles4Souls since 2018. To learn more, visit www.designerbrands.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors, many of which are outside of the Company's control, that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic and financial conditions, including economic volatility and potential downturn or recession, supply chain disruptions, new or increased tariffs and other barriers to trade, tariff refunds, fluctuating interest rates, unemployment rates and inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and the frequency and severity of weather events increases; our ability to execute our business strategies, including growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, integrating previously acquired businesses and brands, and meeting consumer demands; our ability to maintain strong relationships with our suppliers, vendors, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, and payment processing services whether as a result of reliance on third-party providers or otherwise; our reliance on third parties to provide customer payment processing services; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems, including the use of artificial intelligence tools; our ability to protect our reputation and to maintain the brands we license; our reliance on our reward programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended, and our senior secured term loan credit agreement, as amended, that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with laws and regulations, as well as other legal obligations; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended January 31, 2026 or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, the Company undertakes no obligation to update or revise the forward looking statements included in this press release to reflect any future events or circumstances.
DESIGNER BRANDS INC.
SEGMENT RESULTS
(unaudited)
Net Sales
Three months ended
(dollars in thousands)
May 2, 2026
May 3, 2025
Change
Amount
% of Segment Net Sales
Amount
% of Segment Net Sales
Amount
%
Segment net sales:
Retail
$ 626,684
84.5 %
$ 627,145
86.7 %
$ (461)
(0.1) %
Brand Portfolio
114,518
15.5
95,898
13.3
18,620
19.4 %
Total segment net sales
741,202
100.0 %
723,043
100.0 %
18,159
2.5 %
Elimination of intersegment net sales
(44,852)
(36,134)
(8,718)
24.1 %
Consolidated net sales
$ 696,350
$ 686,909
$ 9,441
1.4 %
Comparable Sales
Three months ended
May 2, 2026
May 3, 2025
Change in comparable sales:
Retail segment
(1.2) %
(7.5) %
Brand Portfolio segment - direct-to-consumer channel
3.0 %
(27.0) %
Total
(1.1) %
(7.8) %
Gross Profit
Three months ended
(dollars in thousands)
May 2, 2026
May 3, 2025
Change
Amount
% of Segment Net Sales
Amount
% of Segment Net Sales
Amount
%
Basis Points
Segment gross profit:
Retail
$ 284,296
45.4 %
$ 268,200
42.8 %
$ 16,096
6.0 %
260
Brand Portfolio
38,877
33.9 %
26,026
27.1 %
12,851
49.4 %
680
Total segment gross profit
323,173
43.6 %
294,226
40.7 %
28,947
9.8 %
290
Net recognition (elimination) ofintersegment gross profit
(7,855)
255
(8,110)
Consolidated gross profit
$ 315,318
45.3 %
$ 294,481
42.9 %
$ 20,837
7.1 %
240
Intersegment Recognition and Elimination Activity
Three months ended
(in thousands)
May 2, 2026
May 3, 2025
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment
$ (44,852)
$ (36,134)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment
28,003
25,814
Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period
8,994
10,575
$ (7,855)
$ 255
Operating Profit
