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Designer Brands Returns to Profitability Amid Sales Growth

A sharp reversal from last year’s losses, Designer Brands reported a $1.16 million profit for the fiscal first quarter ending May 2. This recovery, fueled by a 1.4% uptick in net sales to $696.4 million, has pushed the footwear retailer to target the high end of its full-year earnings guidance.

Designer Brands Returns to Profitability Amid Sales Growth

Adjusted earnings reached 7 cents a share, a notable shift from the 37-cent loss reported during the same period in 2023. While overall comparable sales slipped 1.1%, the company saw a 3% boost in its brand portfolio direct-to-consumer channel, which partially countered a 1.2% decline in the retail segment.

Chief Executive Doug Howe attributed these gains to structural refinements in inventory management, pricing, and sourcing. Despite macroeconomic volatility, the retailer remains confident in hitting the upper bound of its fiscal 2026 earnings forecast, which previously projected per-share profits between 28 and 38 cents.

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