Designer Brands Inc Q2 profit rises on margin expansion, lifts FY outlook
Designer Brands Inc Q2 profit rises on margin expansion, lifts FY outlook
Overview
US footwear retailer's Q2 revenue fell 1.2% yr/yr, adjusted EPS rose to $0.34
Company reported improved profitability, driven by gross margin expansion and Brand Portfolio sales growth
Designer Brands raised full-year guidance after positive Q3 start and improved retail trends
Outlook
Designer Brands raises 2026 net sales outlook to flat to up 1%
Company lifts 2026 adjusted diluted EPS guidance to $0.47-$0.52
Designer Brands cites improved retail trends and Brand Portfolio growth for higher outlook
Result Drivers
BRAND PORTFOLIO GROWTH - Co said double-digit sales growth in Brand Portfolio segment contributed to results
GROSS MARGIN EXPANSION - Co attributed improved profitability to meaningful gross margin expansion
Company press release: ID:nPnbCfG72a
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue |
| $730.60 mln |
|
Q2 Adjusted EPS |
| $0.34 |
|
Q2 EPS |
| $0.31 |
|
Q2 Adjusted Net Income |
| $19.20 mln |
|
Q2 Net Income |
| $17.60 mln |
|
Q2 Gross Profit |
| $365.40 mln |
|
Q2 Total comparable sales |
| -2.40% |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Designer Brands Inc. is $7.00, about 34.1% above its September 9 closing price of $5.22
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 19 three months ago
Reuters Recommended Reads
Sept 9 - Footwear retailer Caleres' Q2 sales beat estimates on gains across brands
Sept 10 - Shoe Station Group's Q2 sales miss estimates, lowers outlook
Sept 9 - Academy Sports and Outdoors' Q2 adj EPS beats estimates, outlook raised
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)