Designer Brands Inc. (NYSE:DBI) shares traded lower in the premarket session on Tuesday after reporting second-quarter adjusted earnings per share of 34 cents, beating the analyst consensus estimate of 23 cents.
Quarterly sales of $739.762 million (+4.2% year over year) beat the Street view of $737.845 million. Total comparable sales decreased by 5%.
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“Our second quarter results were highlighted by a 280-basis point sequential improvement in comparable sales from the first quarter, underscoring the impact of our targeted operational initiatives,” stated CEO Doug Howe.
Gross profit fell to $322.9 million from $339.5 million a year earlier. Gross margin slipped to 43.7% compared with 44.0% in the prior year.
Operating profit in the quarter under review decreased to $26.583 million, down from $28.589 million a year ago.
Howe noted that although consumer sentiment has improved somewhat, uncertainty persists due to tariff hikes and cautious discretionary spending, but stressed the company’s focus on disciplined execution and long-term sustainability.
“We anticipate our ongoing efforts to strengthen our brand, drive awareness through investments in marketing, and optimize our omni-channel model will continue to support our transformation,” the CEO said.
Cash and equivalents totaled $44.9 million at the end of the second quarter of 2025, compared to $38.8 million at the end of the same period last year.
The company ended the second quarter with inventories of $610.9 million compared to $642.8 million at the end of the same period last year.
Outlook
Designer Brands said it will not reinstate full-year 2025 guidance.
The company cited macroeconomic uncertainty, mainly from global trade policies, as the reason.
Price Action: DBI shares are trading higher by 5.16% to $4.380 at last check on Tuesday.
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