Designer Brands Inc. (NYSE:DBI ) Q2 2025 Earnings Call September 9, 2025 8:30 AM EDT Company Participants Douglas Howe - CEO & Director Jared Poff - Executive VP, CFO & Chief Administrative Officer Conference Call Participants Mauricio Serna Vega - UBS Investment Bank, Research Division Dana Telsey - Telsey Advisory Group LLC Presentation Operator Good morning, and welcome to the Designer Brands Second Quarter 2025 Results Conference Call. [Operator Instructions] Please note this event is being recorded.
Designer Brands Inc.'s Q1 '25 results show worsening trends in traffic, comps and margins. The company has entered operating loss territory. The company is a very weak situation, entering into a challenging context for US retail, coming from the tariff impact. DBI is leveraged and cannot cover interest with the accrual operating income at this point.
Designer Brands Inc. faces a systemic demand collapse, with declining sales, eroding margins, and mounting debt signaling a failing retail model. Consumer behavior has fundamentally shifted, with nearly 80% skipping shoe purchases and 60% only buying on sale, destroying DBI's pricing power. Cost-cutting and operational improvements offer minor relief, but are overwhelmed by macro headwinds, tariff pressures, and a deteriorating cash flow profile.
| - Industry | - Sector | Douglas M. Howe CEO | NYSE Exchange | 250565108 CUSIP |
| US Country | 14,000 Employees | 5 Dec 2025 Last Dividend | 4 Nov 2013 Last Split | 10 Jun 1991 IPO Date |
Designer Brands Inc., established in 1991 and headquartered in Columbus, Ohio, is a prominent player in the footwear and accessory retail industry, primarily serving the United States and Canada. The company's operations are segmented into three categories: U.S. Retail, Canada Retail, and Brand Portfolio. Designer Brands Inc. is renowned for its commitment to design, production, and retailing, offering a wide array of products for women, men, and kids. Through its diverse operations, the company stands as a comprehensive source for fashion-forward consumers seeking quality and style.
Designer Brands Inc. offers an extensive range of products under multiple well-known brands, emphasizing its role in the fashion industry through various channels, including direct-to-consumer stores, a mobile app, and e-commerce platforms. Below are key offerings: