Designer Brands Inc. raised its full year guidance after reporting a 66.7 percent jump in second quarter net income to $17.6 million, or 31 cents a diluted share, from $10.5 million, or 21 cents, a year ago. Adjusted diluted EPS came in at 34 cents, beating Wall Street's expectation of 26 cents, while net sales slipped 1.2 percent to $730.6 million from $739.8 million and comparable sales fell 2.4 percent. Within the quarter, retail sales totaled $671.1 million and sales in the brand portfolio were $86.3 million, with total segment sales of $757.3 million reduced to total net sales of $730.6 million after the elimination of intersegment net sales of $26.7 million. For the six months, net income was $18.7 million, or 34 cents, against a net loss of $7.3 million, or 15 cents, in the same year-ago period, with net sales essentially flat at $1.43 billion. For its full year 2026 projections, the company now expects net sales to be flat to up 1 percent on an adjusted diluted EPS range between 47 cents to 52 cents, up from prior guidance of net sales down 1 percent to up 1 percent on an adjusted diluted EPS between 28 cents and 38 cents. Chief executive officer Doug Howe credited meaningful gross margin expansion and impressive sales growth in the brand portfolio segment, adding that a positive start to the third quarter gave the company confidence to raise guidance. Designer Brands ended the quarter operating 523 DSW stores, 118 The Shoe Co. stores, and 27 Rubino stores, bringing its total store network to 668 doors.
Designer Brands IncQ2 net income jumped 66.7% to $17.6M with adjusted EPS of 34 cents beating the 26-cent estimate, prompting a raised full-year EPS guidance range of 47-52 cents.
