Designer Brands' Q4 earnings exceeded expectations, stock price up 6%

Columbus, Ohio — On Thursday, Designer Brands Inc. (NYSE: DBI) reported fourth-quarter earnings that exceeded analyst expectations, despite issuing cautious guidance for the upcoming year.

The footwear retailer’s stock rose 5.95% in pre-market trading.

The company reported an adjusted loss of $0.31 per share for the quarter ending January 31, 2026, better than the market consensus of a $0.51 loss per share. Revenue reached $713.6 million, flat compared to the same period last year, and slightly above analysts’ expectations of $709.45 million.

Comparable sales declined 1.9% this quarter, marking the third consecutive quarter of sales improvement.

Gross margin expanded significantly, increasing 280 basis points year-over-year to 42.4%, up from 39.6% last year. The company attributed the strong profit margin performance to strict execution and strategic initiatives. Full-year adjusted operating income greatly exceeded the upper end of guidance.

CEO Doug Howe stated, “Our performance in the fourth quarter and fiscal year 2025 reflects disciplined execution. We strengthened our business and achieved continuous improvement in key financial metrics throughout the year.”

For fiscal year 2026, Designer Brands issued an earnings per share guidance of $0.28 to $0.38. The midpoint of $0.33 is below the analyst consensus of $0.42. The company expects full-year net sales to decline 1% to grow 1%.

At the end of the quarter, the company held $50.9 million in cash and cash equivalents, with total debt of $435.0 million, down from $491.0 million a year earlier. Inventory decreased from $599.8 million last year to $563.5 million. The company announced a dividend of $0.05 per share, payable on April 10, 2026.

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