On the one hand, sales are down MSD, but this is better than HSD in Q1. Further, there were indications of potential positive comps on stores inLong-only investment, evaluating companies from an operational, buy-and-hold perspective.Quipus Capital does not focus on market-driven dynamics and future price action. Instead, our articles focus on operational aspects, understanding the long-term earnings power of companies, the competitive dynamics of the industries where they participate, and buying companies t ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended August 2, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-32545 DESIGNER BRANDS INC. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation ...

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Designer Brands Inc. (DBI) reported an EPS of $0.34, beating the estimated $0.22, indicating effective strategies and operational improvements.Revenue reached $739.8 million, slightly above estimates, showcasing resilience and strategic execution strength.DBI's shares increased by 11.1%, reflecting investor confidence in its future prospects.Designer Brands Inc. (NYSE:DBI) is a prominent player in the global footwear and accessories market. The company designs, produces, and retails a wide range of products ...

Core Insights - Designer Brands Inc. shares increased approximately 12% in premarket trading following stronger-than-expected second-quarter results [1] - Earnings per share were reported at $0.34, significantly exceeding the consensus estimate of $0.14 [1] - Revenue for the quarter reached $739.8 million, surpassing the expected $730.6 million [1] - Comparable sales experienced a 5% decline year-over-year but showed sequential improvement [1] Operational Highlights - The second quarter results featured a 280-basis point sequential improvement in comparable sales from the first quarter, indicating the effectiveness of targeted operational initiatives [2] - CEO Doug Howe emphasized that these initiatives contributed to a strong start for the back-to-school season in the U.S. retail segment, with improved traffic trends and higher conversion rates [2] Guidance and Market Conditions - The company has decided not to reinstate full-year 2025 guidance due to uncertainties related to global trade policies and tariffs [2]

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U.S. stocks traded mostly higher this morning, with the Dow Jones index gaining around 50 points on Tuesday.The Dow traded up 0.09% to 45,555.12 while the NASDAQ rose 0.13% to 21,826.24. The S&P 500 also rose, gaining, 0.15% to 6,504.97.Check This Out: Top 2 Tech Stocks That May Keep You Up At Night This MonthLeading and Lagging SectorsEnergy shares jumped by 1.7% on Tuesday.In trading on Tuesday, materials stocks fell by 1.2%.Top HeadlineDesigner Brands Inc. DBI reported better-than-expected earnings for t ...

Financial Data and Key Metrics Changes - For Q2 2025, the company reported net sales of $739.8 million, a decline of 4.2% year over year, with comparable sales down 5% [20][24] - Adjusted operating income was $30.3 million compared to $32.5 million last year, with adjusted net income at $16.7 million versus $17.1 million last year [24][25] - The effective tax rate on adjusted results was 10.1%, down from 20.6% last year [24] Business Line Data and Key Metrics Changes - U.S. retail segment sales declined 4.8% year over year, with comparable sales down 4.9%, showing significant improvement from Q1 [20][21] - The women's dress category posted a positive 5% comparable sales, a 900 basis point improvement from Q1 [20][21] - The brand portfolio segment saw total sales down 23.8% year over year, primarily due to a decline in internal sales to DSW, while external wholesale business grew by 7% [22][23] Market Data and Key Metrics Changes - Canadian retail segment sales were up 0.4% year over year, with comparable sales down 0.6%, indicating improvement from Q1 [21] - The athletic category experienced a slight negative comp of down 2%, but showed a two-point improvement from the first quarter [21] Company Strategy and Development Direction - The company is focusing on two pillars: customer and product, aiming to drive growth through scaling private label and enhancing wholesale models [11] - A new brand repositioning campaign titled "Let Us Surprise You" was launched to reinvigorate the DSW brand identity [12][39] - The company is optimizing inventory by reducing choice count by 25% while increasing depth by 15%, aiming to improve product availability and customer satisfaction [13][51] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of the year, despite ongoing macroeconomic headwinds and uncertainties related to tariffs [18][26] - The company is withholding full-year guidance due to the unpredictable macro environment but remains focused on disciplined execution [18][26] Other Important Information - The company ended Q2 with total inventories down 5% year over year and utilized excess cash to pay down debts, reducing total debt outstanding to $516.3 million [25] - The company fulfilled over 80% more digital demand through its logistics center compared to last year, enhancing operational efficiency [15] Q&A Session Summary Question: Can you elaborate on the interquarter trends and comp sales? - Management noted sequential improvement throughout the quarter, particularly in women's dress and athletic categories, with positive trends continuing into August [28][29] Question: What are the pressures foreseen in Q3 due to tariffs? - Management indicated that the primary concern is the indirect impact of tariffs on consumer sentiment rather than direct costs, with selective price increases implemented [34][35] Question: How is the new marketing campaign expected to impact store productivity? - Management expressed excitement about the campaign's early positive feedback and emphasized the importance of in-store experiences as a core differentiator [39][40] Question: What are the expectations for brand activations in Q4? - Management highlighted strong performance from brands like Birkenstock and noted that the top eight brands accounted for 45% of total sales [45] Question: Can you elaborate on the deeper assortment strategy? - Management confirmed a focus on increasing product availability and inventory productivity, with a significant reduction in choice count and an increase in depth planned [51]

Financial Data and Key Metrics Changes - Total sales for the quarter were down 4% year over year, with a 5% decline in comparable sales, reflecting a 280 basis point improvement from the first quarter [4][19] - Adjusted operating expenses were down over $14 million compared to last year, achieving 350 basis points of leverage compared to Q1, supporting year-over-year EPS growth [5][22] - Consolidated gross margin was 43.7% in the second quarter, decreasing by 30 basis points versus the prior year but leveraging 70 basis points from the first quarter [21] Business Line Data and Key Metrics Changes - In the U.S. retail segment, sales declined 4.8% year over year, with comp sales down 4.9%, showing significant improvement from Q1 [19] - Women's dress category posted a positive 5% comp, a 900 basis point improvement from the first quarter, while athletic sales were slightly negative at down 2% [20] - Canadian retail segment sales were up 0.4% year over year, with comps down 0.6%, indicating another significant improvement from Q1 [20] Market Data and Key Metrics Changes - The largest number of signups for the VIP rewards program occurred in stores, with store traffic improving and positively impacting the program [5] - The DoorDash partnership resulted in approximately 85% of transactions being from new customers, bolstering interest in stores across local geographies [7] - The brand portfolio segment saw total sales down 24% compared to last year, primarily due to lower internal sales, but wholesale activity across external retail partners delivered year-over-year growth [9][21] Company Strategy and Development Direction - The company is focusing on two pillars: customer and product, with plans to scale private label and build a more profitable wholesale model [10] - A new brand repositioning campaign, "Let Us Surprise You," aims to enhance customer engagement and brand identity [11] - The company is committed to optimizing inventory availability, reducing choice count by 25% while increasing depth by 15% for key styles [12] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the remainder of the year, despite ongoing macroeconomic headwinds and uncertainties related to tariffs [16][24] - The company is focused on disciplined execution and navigating the near-term environment while building a business grounded in brand strength [16] - Management remains committed to their strategy and transformation, encouraged by early signs of positive momentum [17] Other Important Information - The company ended the second quarter with total inventories down 5% year over year and utilized excess cash to pay down debts, ending with total debt outstanding of $516.3 million [23] - The effective tax rate for the second quarter on adjusted results was 10.1%, compared to 20.6% last year [22] Q&A Session Summary Question: Can you elaborate on the interquarter trends and comp sales? - Management noted sequential improvement throughout the quarter, particularly in women's dress and athletic categories, with positive trends continuing into August [28][30] Question: What are the pressures foreseen in Q3 due to tariffs? - Management highlighted concerns about the indirect impact of tariffs on consumer sentiment rather than direct costs, with selective price increases implemented [34][36] Question: How is the new marketing campaign expected to impact store productivity? - The campaign has received positive feedback, and management is focused on optimizing marketing investments while tracking performance closely [40][41] Question: What are the expectations for brand activations in Q4? - Management expressed optimism about the performance of key brands, including Birkenstock and Nike, with a focus on maintaining better in-stock levels [46] Question: Can you elaborate on the deeper assortment strategy? - The strategy involves increasing product availability and depth for key styles while reducing choice count, aimed at improving inventory productivity [51]

Designer Brands (NYSE:DBI) Q2 2026 Earnings Call September 09, 2025 08:30 AM ET Company ParticipantsAshley Ferlin - Investor RelationsDoug M. Howe - CEOJared Poff - CFOConference Call ParticipantsDana Telsey - AnalystMauricio Serna - AnalystOperatorMorning and welcome to the Designer Brands Inc. Second Quarter 2025 Results Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star, then zero on your telephone keypad. Afte ...