Designer Brands Q1 2025 Earnings Report
Key Takeaways
Designer Brands faced headwinds in Q1 2025, reporting an 8% decline in revenue and a net loss of $17.4 million as consumer sentiment weakened. The company withdrew its full-year guidance amid macroeconomic uncertainty and emphasized cost-saving measures.
Net sales declined to $686.9 million, down from $746.6 million the prior year.
Net loss was $17.4 million, with adjusted net loss of $12.5 million.
Comparable sales declined 7.8% overall, led by a 27% drop in Brand Portfolio DTC.
Full-year 2025 guidance was withdrawn due to market volatility and tariff concerns.
Designer Brands
Designer Brands
Designer Brands Revenue by Segment
Designer Brands Revenue by Geographic Location
Forward Guidance
Designer Brands withdrew its FY2025 guidance due to persistent macroeconomic volatility, global trade policy uncertainty, and weakening consumer discretionary spending.
Positive Outlook
- Identified $20–$30 million in planned cost savings for FY2025
- Focus on margin preservation and cost control
- Inventory levels remained stable year-over-year
- Cash position slightly improved from the prior year
- Continued commitment to customer-focused initiatives
Challenges Ahead
- Withdrawal of full-year guidance due to market instability
- Decline in comparable sales across all segments
- Gross margin deterioration from 44.2% to 43.0%
- Net loss of $17.4 million vs net income last year
- Consumer sentiment and discretionary spend remain weak
Revenue & Expenses
Visualization of income flow from segment revenue to net income