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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
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  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The 5 Most Interesting Analyst Questions From Designer Brands’s Q2 Earnings Call

DBI Cover Image

Designer Brands’ second quarter saw a positive market reaction as the company delivered results that met Wall Street’s revenue expectations and significantly surpassed non-GAAP profit forecasts. Management pointed to sequential improvement versus earlier quarters, citing disciplined cost management and targeted operational initiatives. CEO Doug Howe credited improved store traffic, higher conversion rates, and a focus on core product categories—especially women’s dress shoes and top-performing brands—as key factors. Howe highlighted, “Our strong assortment and improved in-stock levels resonated with customers,” noting that the VIP rewards program, which drives most transactions, benefited from in-store signups.

Is now the time to buy DBI? Find out in our full research report (it’s free).

Designer Brands (DBI) Q2 CY2025 Highlights:

  • Revenue: $739.8 million vs analyst estimates of $737.9 million (4.2% year-on-year decline, in line)
  • Adjusted EPS: $0.34 vs analyst estimates of $0.22 (52.2% beat)
  • Adjusted EBITDA: $45.13 million vs analyst estimates of $46 million (6.1% margin, 1.9% miss)
  • Operating Margin: 3.6%, in line with the same quarter last year
  • Locations: 668 at quarter end, down from 676 in the same quarter last year
  • Same-Store Sales fell 5% year on year (-1.4% in the same quarter last year)
  • Market Capitalization: $218.5 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Designer Brands’s Q2 Earnings Call

  • Mauricio Serna (UBS) asked about improvement trends through the quarter and August momentum. CEO Doug Howe noted ongoing sequential improvement, especially in women’s dress and athletic categories, and positive store comps into August.

  • Serna (UBS) followed up on profitability strategy amid digital pullback. CFO Jared Poff explained the deliberate reduction of unprofitable digital sales to focus on higher-margin store sales, resulting in improved profitability trends.

  • Serna (UBS) inquired about the impact of tariffs on Q3 costs. Howe and Poff clarified that the main concern is indirect effects on consumer sentiment, as most sourcing is domestic or through brand partners, with selective price increases mitigating direct cost impacts.

  • Dana Telsey (Telsey Group) questioned the early results of the “Let Us Surprise You” brand campaign and store productivity. Howe indicated positive anecdotal feedback, with store differentiation and customer engagement as primary goals, though it is too early for quantitative results.

  • Telsey (Telsey Group) also asked about brand activation performance. Howe highlighted the success of top eight brand activations like Birkenstock, which contributed to increased brand penetration and improved in-stock levels.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will closely watch (1) the traction of the new DSW brand campaign and immersive store formats, (2) sustained improvement in store traffic and conversion rates, and (3) the company’s ability to manage costs and navigate tariff-related pressures. Progress in digital profitability and further expansion of brand partnerships will also be important markers for execution.

Designer Brands currently trades at $4.37, up from $4.17 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free).

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