Designer Brands raises full-year guidance following strong Q2 earnings

Designer Brands Inc. reported second-quarter results that exceeded analyst expectations for adjusted earnings, leading the company to raise its full-year guidance. Adjusted diluted earnings per share (EPS) rose to 34 cents, surpassing the consensus estimate of 26 cents. While total net sales saw a slight decrease of 1.2 percent to $730.6 million, the company noted significant improvements in profitability and gross margin expansion.

A key driver of growth was the Branded Portfolio segment, specifically the running and trail footwear brand Topo Athletic. Topo Athletic sales increased 24 percent during the quarter. CEO Doug Howe stated that the brand is expected to surpass $100 million in annual sales by 2027 and noted significant expansion opportunities, as the brand is not currently sold in DSW stores.

Following these results, Designer Brands raised its full-year 2026 projections. The company now expects net sales to be flat to up 1 percent, with an adjusted diluted EPS range of 47 to 52 cents, up from the previous guidance of 28 to 38 cents.