Designer Brands Inc. Reports Second Quarter of 2026 Financial Results

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 second quarter ended August 1, 2026.

Second Quarter of 2026 Operating Results (Unless otherwise stated, all comparisons are to the second quarter of 2025)

Net sales decreased 1.2% to $730.6 million. Total comparable sales decreased by 2.4%. Reported gross profit was $365.4 million compared to $322.5 million last year, and gross margin was 50.0% compared to 43.6% last year. Adjusted gross profit was $350.0 million compared to $322.5 million last year, and adjusted gross margin was 47.9% compared to 43.6% last year. Reported net income attributable to Designer Brands Inc. was $17.6 million, or diluted earnings per share ("EPS") of $0.31. Adjusted net income was $19.2 million, or adjusted diluted EPS of $0.34.

Liquidity

Cash and cash equivalents totaled $51.6 million at the end of the second quarter of 2026, compared to $44.9 million at the end of the same period last year, with $146.2 million available for borrowings under our senior secured asset-based revolving credit facility. Debt totaled $423.1 million at the end of the second quarter of 2026 compared to $516.3 million at the end of the same period last year, a reduction of approximately $93.0 million. The Company ended the second quarter of 2026 with inventories of $594.7 million compared to $610.9 million at the end of the same period last year.

Return to Shareholders

A dividend of $0.05 per share for both Class A and Class B common shares will be paid on October 7, 2026 to shareholders of record at the close of business on September 24, 2026.

Store Count (square footage in thousands)

August 1, 2026 August 2, 2025 Number of Stores Square Footage Number of Stores Square Footage DSW stores 523 10,225 519 10,197 The Shoe Co. stores 118 598 121 618 Rubino stores 27 141 28 147 Total number of stores 668 10,964 668 10,962

During the six months ended August 1, 2026, the Company opened 7 new stores, closed 4 stores, and remodeled 3 stores.

2026 Financial Outlook

Following a strong start to the third quarter, the Company is raising its guidance for the full year 2026:

Metric Previous Guidance Revised Guidance Designer Brands Change in Net Sales Down 1% to Up 1% Flat to Up 1% Adjusted Diluted Earnings per Share $0.28 - $0.38 $0.47 - $0.52

To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures. Forward-looking adjusted diluted earnings per share excludes potential charges or gains that may be recorded during the fiscal year, including, among other things, tariff recoveries recorded to cost of sales and interest on tariff recoveries recorded to non-operating income used to pay interest expense to an unrelated financial investor (the "Investor"); interest expense on the financing transaction with the Investor a...