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Aug 02
Designer Brands Q2 2025 Earnings Report
Designer Brands posted a modest profit in Q2 2025 despite declining sales and ongoing macroeconomic pressures.
Key Takeaways
Designer Brands reported Q2 revenue of $739.8M and net income of $10.8M. EPS came in at $0.22, with an adjusted EPS of $0.34. While total sales and gross profit declined, sequential improvement in comparable sales highlighted the effectiveness of operational initiatives.
Revenue decreased 4.2% year-over-year to $739.8M
Net income was $10.8M with diluted EPS of $0.22
Gross margin held relatively steady at 43.7%
Comparable sales improved sequentially despite still being down YoY
Designer Brands
Designer Brands
Designer Brands Revenue by Segment
Designer Brands Revenue by Geographic Location
Revenue by Segment
U.S. Retail Revenue
CapyFin.comCanada Retail Revenue
CapyFin.comBrand Portfolio Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comCanada Revenue
CapyFin.com Forward Guidance
Due to macroeconomic uncertainty, Designer Brands did not reinstate full-year 2025 guidance.
Positive Outlook
- Sequential improvement in comparable sales
- Strong back-to-school performance in U.S. Retail
- Inventory levels down year-over-year
- Increased cash position from prior year
- Adjusted EPS grew versus Q2 2024
Challenges Ahead
- Decline in total revenue year-over-year
- Gross profit and operating income fell
- Brand Portfolio segment sales dropped 23.8%
- Comparable sales remained negative across segments
- No forward guidance reinstated due to uncertainty
Revenue & Expenses
Visualization of income flow from segment revenue to net income