Designer Brands Inc. (DBI) Q2 2025 Financial Results Summary

# Designer Brands Inc. (DBI) Q2 2025 Financial Results Summary

COLUMBUS, Ohio, September 9, 2025 – Designer Brands Inc., one of the world’s largest designers, producers, and retailers of footwear and accessories, announced its financial results for the second quarter ended August 2, 2025. Below is a summary of the key highlights from the report:

## Financial Highlights

– **Net Sales**: Decreased by **4.2%** to **$739.8 million** from **$771.9 million** in Q2 2024.
– **Total Comparable Sales**: Decreased by **5.0%** compared to the same quarter in the previous year.
– **Gross Profit**: Decreased to **$322.9 million**, down **4.9%**, with a gross margin of **43.7%**, compared to **44.0%** in Q2 2024.
– **Income**:
– Reported net income attributable to Designer Brands Inc. was **$10.8 million**, translating to a diluted EPS of **$0.22**.
– Adjusted net income was **$16.7 million**, or adjusted diluted EPS of **$0.34**, indicating an increase from **$0.29** in Q2 2024.

## Operational Insights

– **Comparable Sales**: Sequential improvement noted with a **280-basis point increase** in comparable sales from Q1 2025.
– **Consumer Sentiment**: Slight increase noted amidst ongoing macroeconomic volatility.

## Key Segment Results

– **U.S. Retail Segment**:
– Net sales decreased by **4.8%** to **$610.9 million**.
– Comparable sales down **4.9%** vs. a **1.1%** decrease in Q2 2024.
– **Canada Retail Segment**:
– Net sales increased slightly by **0.4%** to **$75.1 million**.
– Comparable sales decreased by **0.6%** vs. **3.1%** decline in Q2 2024.
– **Brand Portfolio Segment**:
– Net sales decreased by **23.8%** to **$73.2 million**.
– Comparable sales decreased by **29.2%** vs. **7.0%** last year.

## Liquidity and Capital Structure

– **Cash and Cash Equivalents**: Increased to **$44.9 million** from **$38.8 million** in Q2 2024.
– **Debt**: Totaled **$516.3 million**, up from **$465.7 million** a year earlier.
– **Inventories**: Reduced to **$610.9 million** from **$642.8 million** in the prior year.

## Store Count

– **Total Number of Stores**: Decreased from **676 stores** in 2024 to **668**, across the U.S. and Canada.

## Dividend and Share Repurchase

– No quarterly dividend was declared for this quarter.
– There were no announcements regarding share repurchases.

## Financial Outlook

– Designer Brands has opted not to reinstate full-year 2025 guidance due to continued macroeconomic uncertainties primarily stemming from global trade policies.

## Summary

– The second quarter performance reflected a challenging retail environment with significant year-on-year decreases in key metrics, although some sequential recovery was noted.
– The response to operational initiatives and upcoming marketing investments is anticipated to continue supporting transformation efforts amidst uncertainty in consumer spending.

For further detailed information, investors can refer to the full financial statements and related disclosures on Designer Brands’ investor relations website.