Q2 2025 Designer Brands Inc Earnings Call Transcript
Key Points
- Sequential improvement in sales from Q1 to Q2, with a 280 basis point improvement in comparable sales.
- Adjusted operating expenses decreased by over $14 million year-over-year, achieving 350 basis points of leverage compared to Q1.
- Positive momentum in the women's dress category, with a 5% comp increase and a 900-basis point improvement from Q1.
- Successful launch of a partnership with DoorDash, with 85% of transactions representing new customers to DSW.
- Strong performance of top eight brands, which delivered a positive 1% comp and accounted for 45% of total sales.
- Total sales for the quarter were down 4% year-over-year, with a 5% decline in comparable sales.
- US retail comps were down 5%, with total sales also down 5%, reflecting ongoing macroeconomic pressures.
- Sales in the brand portfolio segment were down 24% compared to last year, driven by lower internal sales.
- Consolidated gross margin decreased by 30 basis points versus the prior year, primarily due to lower IMU.
- Continued withholding of full-year guidance due to persistent macro headwinds and uncertainties related to tariffs.
Good morning, and welcome to the Designer Brands second quarter 2025 results conference call. (Operator Instructions) 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 August 2, 2025 to the 13-week period ended August 3, 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's public
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