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Designer Brands Inc

Designer Brands Inc. designs, produces, and retails footwear and accessories in the United States, Canada, and internationally. It operates through two segments: Retail and Brand Portfolio. The company offers dress, casual, and athletic footwear, accessories, and handbags for women, men, and kids under brands including Vince Camuto, Keds, Topo, Jessica Simpson, Lucky Brand, Le Tigre, and Hush Puppies. Products are sold through direct-to-consumer stores, e-commerce sites, banners such as DSW Designer Shoe Warehouse, The Shoe Co, and Rubino, and mobile applications. Founded in 1991, the company is based in Columbus, Ohio.

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Designer Brands Raises Full-Year Sales Guidance on Tariff Refunds and Brand Growth

Designer Brands Inc. raised its full-year sales guidance to flat-to-up 1%, citing a strong start to the third quarter and back-to-school performance exceeding internal expectations. Second quarter gross margin benefited from $20.2 million in tariff refund claims, contributing 280 basis points to the reported improvement, while the company recorded a one-time interest expense of $16.1 million related to the sale of those claims. The company achieved 150 basis points of core gross margin expansion through disciplined markdown management and elevated assortments, and brand portfolio growth of 18% was fueled by double-digit wholesale increases, including exclusive brands Topo and Jessica Simpson. Management expects the Topo brand to exceed $100 million in revenue by 2027, with growth from expanding into new specialty run distribution channels, and noted that athletic demand improved sequentially by 400 basis points in August. Total debt was reduced by over $93 million compared to the prior year, and the relaunch of the VIP rewards program this month aims to increase customer frequency and retention for the 30 million members who represent nearly 90% of total transactions.
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Designer Brands Shares Rise 5.2% After Q2 Earnings Beat and Guidance Hike

Designer Brands shares climbed 5.2% after the DSW parent posted better-than-expected second-quarter results and raised its full-year guidance. Revenue fell 1.2% to $730.6 million, missing estimates of $744.7 million, while comparable sales declined 2.4%. Profitability impressed: adjusted gross margin improved to 47.9% from 43.6%, helped by better product selection and tighter inventory control, plus $15.3 million in tariff refunds that were not included in the adjusted margin. Adjusted earnings per share rose to $0.34 from $0.33, beating estimates of $0.26, and the Brand Portfolio segment grew comps 7.1%. Management cited a strong start to the third quarter and now expects full-year revenue growth of flat to 1%, up from a prior range of -1% to +1%, with adjusted earnings per share of $0.47-$0.52 versus an earlier forecast of $0.28-$0.38.
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