Q3 2025 Designer Brands Inc Earnings Call Transcript
Key Points
- Designer Brands Inc (DBI) reported a sequential improvement in key metrics, with a 260 basis point improvement in comparable sales from the second quarter.
- Gross profit dollars exceeded last year by $5.8 million, with a 210 basis point improvement in gross margin.
- The company achieved an adjusted EPS of $0.38, up from $0.27 last year, indicating improved profitability.
- DBI paid down $47 million of debt in the quarter, strengthening its balance sheet.
- The 'Let Us Surprise You' brand campaign generated strong awareness with $2 billion earned media impressions, contributing to positive sales momentum.
- Total sales for the quarter were down 3% year-over-year, with comparable sales down 2.4%.
- The Canadian business saw a decline in total sales by 8%, with comp sales down 6.6%, attributed to unseasonably warm weather.
- The Brand Portfolio segment experienced a 9% decline in total sales due to temporary sourcing-related delivery delays.
- Adjusted operating expenses increased by $2.5 million compared to last year, reflecting a 160 basis point deleverage on lower sales.
- The company expects total net sales for the year to be down in the range of 3% to 5%, indicating ongoing challenges in achieving growth.
Good day, and welcome to the Designer Brands, Inc. third quarter 2025 earnings conference call. (Operator Instructions)
Please note this event is being recorded. I would now like to turn the conference over to Ashley Firlan, Investor relations. Please go ahead.
Good morning. Earlier today, the company issued a press release comparing results of operations for the 13-week period ended November 1, 2025, to the 13-week period ended November 2, 2024. Please note that the financial results that we will be referencing during the remainder of today's call excludes certain adjustments recorded under GAAP unless specified otherwise. For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.
Additionally, please note that remarks made about the future expectations, plans and prospects of the company constitute forward-looking statements. Results may differ materially due to the various factors listed in today's press release and the company
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