Footwear retailer Designer Brands Q2 net sales fall 4.2%, not to reinstate annual forecast

Designer Brands

09/09/2025 12:00

Overview

Designer Brands Q2 2025 net sales decreased 4.2% to $739.8 mln

Adjusted diluted EPS for Q2 was $0.34, showing growth over last year

Company did not provide full-year 2025 guidance due to macroeconomic uncertainties

Outlook

Company declines to reinstate full-year 2025 guidance due to macroeconomic uncertainty

Designer Brands cites global trade policies as reason for guidance withdrawal

Company focuses on brand strengthening and omni-channel optimization amidst uncertainty

Ongoing macroeconomic volatility, including tariff increases and discretionary spending caution, impacts outlook

Result Drivers

OPERATIONAL INITIATIVES - Sequential comparable sales improved by 280 basis points from Q1 2025, driven by targeted operational strategies, per CEO Doug Howe

BACK-TO-SCHOOL BOOST - Strong start to the back-to-school season in the U.S. Retail segment contributed to performance improvements

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$739.80 mln
Q2 Adjusted EPS
$0.34
Q2 EPS
$0.22
Q2 Adjusted Net Income
$16.70 mln
Q2 Net Income
$10.80 mln
Q2 Gross Profit
$322.90 mln


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 $4.00, about 4.2% below its September 8 closing price of $4.17

Press Release: ID:nPn2fdf7fa

(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.)