Footwear retailer Designer Brands reports drop in Q3 revenue, expects 2025 sales decline

Designer Brands

09/12/2025 11:54

Overview

Designer Brands Q3 revenue fell 3.2% year-over-year

Adjusted EPS rose over 40% year-over-year

Gross margin improved by 210 basis points

Outlook

Designer Brands expects fiscal 2025 net sales to decline by 3% to 5%

Company projects fiscal 2025 adjusted operating profit of $50 mln to $55 mln

Designer Brands anticipates fiscal 2025 adjusted income tax expense of $8 mln to $10 mln

Result Drivers

CONSUMER DEMAND - Stronger consumer demand and improved in-store execution drove better comparable sales compared to Q2

GROSS PROFIT INCREASE - Co achieved meaningful increase in gross profit and managed expenses, boosting operating income

STRATEGIC INITIATIVES - Positive momentum from strategic initiatives extended into early Q4, per CEO Doug Howe

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$752.40 mln
Q3 Adjusted EPS
$0.38
Q3 EPS
$0.35
Q3 Adjusted Net Income
$19.60 mln
Q3 Net Income
$18.20 mln
Q3 Gross Profit
$339.60 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 $4.75, about 2.1% below its December 8 closing price of $4.85

Press Release: ID:nPn1w5571a

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.

(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.)