Designer Brands Q2 sales decline 4.2 percent

Designer Brands Inc., a footwear and accessories retailer, has released its financial results for the second quarter, which ended on August 2, 2025. Despite these operational gains, the company's financial results show a mixed picture when compared to the second quarter of 2024. Net sales saw a 4.2 percent decrease to 739.8 million dollars, and total comparable sales fell by 5 percent.

Gross profit was also down at 322.9 million dollars versus the previous year, resulting in a slight decline in gross margin from 44 percent to 43.7 percent. The company reported a net income of 10.8 million dollars, or 22 cents in diluted earnings per share (EPS), while adjusted net income was 16.7 million dollars, or 34 cents in adjusted diluted EPS.

The company's CEO, Doug Howe, highlighted a significant improvement in comparable sales, which saw a 280-basis point sequential increase from the first quarter. This improvement was supported by targeted operational initiatives, particularly a strong start to the back-to-school season in the U.S. retail segment.

The company's physical footprint has seen a slight decrease, with the total store count at 668, down from 676 stores in the second quarter of 2024. This change is primarily due to the closure of DSW stores in the U.S. and both The Shoe Co. and Rubino stores in Canada.

Due to ongoing macroeconomic volatility, including recent tariff increases and cautious consumer spending, Designer Brands has decided not to provide a full-year 2025 financial outlook.