Q4 2025 Designer Brands Inc Earnings Call Transcript
Key Points
- Designer Brands Inc (DBI) delivered full-year adjusted operating income of $65 million, significantly above the guidance range of $50 million to $55 million.
- The company achieved a gross margin improvement of 280 basis points year-over-year in the fourth quarter.
- DBI's DSW brand generated 79 billion total impressions in 2025, up 10% year-over-year, indicating strong brand engagement.
- The company successfully reduced its total adjusted operating expenses by approximately $26 million for fiscal 2025 compared to 2024.
- DBI ended the fourth quarter with total inventories down 6% versus the prior year, reflecting effective inventory management.
- Total company sales declined 3.9% for the full year, with comparable sales down 4.3%.
- Fourth quarter adjusted net loss was $15.6 million or $0.31 per diluted share, compared to a loss of $21.3 million or $0.44 per diluted share in the prior year.
- The macro environment remains dynamic, with potential inflationary pressures due to conflict in the Middle East and evolving tariff dynamics.
- Full-year adjusted net income decreased to $8.3 million or $0.16 per diluted share from $15 million or $0.27 per diluted share in fiscal 2024.
- The company anticipates flat to slightly declining sales in the Retail segment for 2026, with growth primarily driven by the Brand Portfolio segment.
Good day and welcome to the Designer Brands, Inc. 4Q25 Earnings Conference Call.
(Operator Instructions)
Please note today's event is being recorded. I would now like to turn the conference over to Matthew Crummy, SVP of Strategy and FP&A. Please go ahead.
Good morning. Earlier today, the company issued a press release comparing results of operations for the 13 week and 52-week periods ended January 31, 2026, to the 13 week and 52 week periods ended February 1, 2025.
Please note that the financial results that we will be referencing during the remainder of today's call exclude 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 the remarks made about the future expectations, plans and prospects of the company constitute forward-looking statements.
Results may differ materially due to the
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