1. DBI reported Q3 EPS of $0.35, up over 40% year-over-year. 2. Gross profit increased to $339.6 million, with a gross margin of 45.1%. 3. Net sales decreased by 3.2% to $752.4 million this quarter. 4. Fiscal 2025 adjusted operating income anticipated between $50-$55 million. 5. Confident management expects positive momentum amid macroeconomic pressures.
FAQ
Why Bullish?
DBI's significant EPS growth and gross margin improvement indicate strong profitability, despite net sales decline. Similar patterns historically correlate with increased investor confidence and stock price recovery.
How important is it?
Positive earnings growth, improved margins, and shareholder returns highlight DBI's operational strength, which is crucial for stock performance.
Why Short Term?
The immediate positive sentiments from recent earnings and management outlook could drive short-term investor activity and stock price movement.
Designer Brands Inc. Reports Positive Financial Results for Third Quarter 2025
Designer Brands Inc. (NYSE: DBI), a leading global designer and retailer in the footwear and accessories market, has released its financial results for the third quarter ended November 1, 2025. The company reported a significant increase in earnings, marking a strong performance despite ongoing macroeconomic challenges.
Key Financial Highlights
- Generated diluted earnings per share ("EPS") of $0.35, with an adjusted diluted EPS of $0.38, both up more than 40% year-over-year.
- Achieved a gross margin improvement of 210 basis points compared to the same period last year.
- Fiscal 2025 adjusted operating income is projected to be between $50 million and $55 million.
Operational Performance Overview
Net sales for Designer Brands Inc. experienced a 3.2% decline, totaling $752.4 million for the quarter. Comparable sales decreased by 2.4%. However, robust gross profit increased to $339.6 million, compared to $333.8 million in the prior year, resulting in a gross margin of 45.1%.
Liquidity Position and Shareholder Returns
As of the end of the third quarter of 2025, Designer Brands maintained cash and cash equivalents of $51.4 million, up from $36.2 million year-over-year. Available borrowings under the senior secured asset-based revolving credit facility totaled $166.9 million. The company's total debt was $469.8 million, a reduction from $536.3 million during the same period last year.
To reward shareholders, Designer Brands announced a dividend of $0.05 per share for both Class A and Class B common shares, scheduled to be paid on December 19, 2025.
Store Count Update
As of November 1, 2025, Designer Brands operated a total of 672 stores across North America, with the following breakdown:
- U.S. Retail segment (DSW stores): 497 stores
- Canadian Retail segment (The Shoe Co.): 120 stores
- Canadian Retail segment (Rubino): 28 stores
- Canadian Retail segment (DSW): 27 stores
Fiscal 2025 Financial Outlook
Looking ahead, Designer Brands anticipates the following for fiscal 2025:
- Net sales are expected to decline by 3% to 5%.
- Adjusted operating profit projected between $50 million and $55 million.
- Adjusted income tax expense estimated at $8 million to $10 million.
Conference Call Invitation
Designer Brands will host a conference call today at 8:30 AM Eastern Time to discuss these results. Analysts and investors can participate by calling 1-888-317-6003 or 1-412-317-6061 internationally, with the conference ID number 7491258. The call will also be available via live webcast on the company’s investor website.
About Designer Brands Inc.
Designer Brands Inc. is a prominent leader in the global footwear and accessories market. The company boasts a diverse portfolio of well-known brands, including Topo Athletic, Keds, Vince Camuto, and more. With a commitment to innovation and sustainable practices, Designer Brands aims to lead the industry in providing fashionable footwear and accessories.