Designer Brands Shares Rise on Better-Than-Expected Earnings Despite Revenue Decline
Shares of Designer Brands (NYSE: DBI) rose by 5.2% following its second-quarter earnings report, which showed better-than-expected profitability despite a revenue decline in a tough footwear market. The company reported $730.6 million in revenue for the quarter, below estimates but with notable improvements in adjusted gross margin from 43.6% to 47.9%. This was driven by improved product selection and inventory control, along with $15.3 million in tariff refunds. Adjusted earnings per share came in at $0.34, surpassing expectations of $0.26. Designer Brands also raised its full-year guidance for revenue growth to flat-to-+1% from -1%-to-+1%, and adjusted EPS is now expected between $0.47-$0.52 versus a prior range of $0.28-$0.38.
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