Designer Brands Q3 shows sequential improvement amidst sales dip

Designer Brands Inc., a global designer, producer, and retailer of footwear and accessories, announced its financial results for the third quarter ended November 1, 2025, highlighting meaningful sequential improvement in its business transformation. While net sales saw a 3.2 percent decrease to 752.4 million dollars, and total comparable sales declined by 2.4 percent compared to the prior year, the company demonstrated stronger underlying performance.

Gross profit rose to 339.6 million dollars from 333.8 million dollars, boosting the gross margin to 45.1 percent from 43 percent in the third quarter of 2024. The company reported net income of 18.2 million dollars, or diluted EPS of 35 cents, and adjusted net income of 19.6 million dollars, or adjusted diluted EPS of 38 cents.

CEO Doug Howe stated the performance was "another meaningful step forward in our transformation," attributing the improved comparable sales and increased operating income to "stronger consumer demand and improved in-store execution." He also noted a meaningful increase in gross profit and diligent expense management. Encouraged by positive momentum extending into the early fourth quarter, Howe expressed confidence in navigating persistent macroeconomic pressures while continuing to execute long-term strategies.

Looking ahead, Designer Brands forecasts a full-year 2025 net sales decrease between 3 percent and 5 percent and expects adjusted operating profit to range from 50 million dollars to 55 million dollars. The company also declared a dividend of 5 cents per share.