# Designer Brands Inc. (DBI) Informational only - not investment advice. CIK: 0001319947 SIC: 5661 Retail-Shoe Stores SIC breadcrumb: [Retail Trade](/division/G/) > [SIC Major Group 56](/major-group/56/) > [SIC 5661 Retail-Shoe Stores](/industry/5661/) Latest 10-K filed: 2026-03-30 SEC page: https://www.sec.gov/edgar/browse/?CIK=1319947 Filing source: https://www.sec.gov/Archives/edgar/data/1319947/000131994726000022/dsw-20260131.htm ## At a glance FY2026 · period end 2026-01-31 · filed 2026-03-30 · accession 0001319947-26-000022 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001319947.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 2,892,671,000 USD | 2026 | verified | | Net income | -8,374,000 USD | 2026 | verified | | Assets | 1,947,633,000 USD | 2026 | verified | | Free cash flow | 78,255,000 USD | 2026 | computed | | Net margin | -0.29% | 2026 | computed | | Operating margin | 1.65% | 2026 | computed | | Revenue YoY | -3.87% | 2026 | computed | | ROE | -2.96% | 2026 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2026 revenue ÷ FY2025 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | DBI | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | -0.3% | 4.0% | 7 | 16 | | Operating margin | 1.7% | 4.1% | 14 | 15 | | Revenue growth | -3.9% | 5.0% | 13 | 16 | | FCF margin | 2.7% | 4.7% | 27 | 16 | | ROE | -3.0% | 16.5% | 0 | 15 | | ROA | -0.4% | 4.6% | 7 | 16 | | Liabilities / equity | 5.88 | 1.51 | 100 | 15 | | Current ratio | 1.20 | 1.55 | 20 | 16 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC major-group 56 SIC Major Group 56, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 2892671000 | USD | 2026 | 2026-03-30 | | Net income | -8374000 | USD | 2026 | 2026-03-30 | | Assets | 1947633000 | USD | 2026 | 2026-03-30 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-03-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001319947.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2011 | 2012 | 2013 | 2014 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | | | | | 2,718,299,000 | 2,805,555,000 | 3,177,918,000 | 3,492,687,000 | 2,234,719,000 | 3,196,583,000 | 3,315,428,000 | 3,074,976,000 | 3,009,262,000 | 2,892,671,000 | | Net income | 17,794,000 | 174,788,000 | 146,439,000 | 151,302,000 | | | | | -488,719,000 | 154,481,000 | 162,676,000 | 29,062,000 | -10,549,000 | -8,374,000 | | Operating income | | | | | 199,977,000 | 125,058,000 | 59,005,000 | 127,299,000 | -586,314,000 | 205,221,000 | 187,390,000 | 72,401,000 | 34,933,000 | 47,764,000 | | Gross profit | | | | | 779,898,000 | 799,132,000 | 938,689,000 | 999,670,000 | 311,241,000 | 1,068,637,000 | 1,454,697,000 | 1,323,995,000 | 1,285,958,000 | 1,260,390,000 | | Diluted EPS | | | | | 1.51 | 0.84 | -0.26 | 1.27 | -6.77 | 2.00 | 2.26 | 0.46 | -0.20 | -0.17 | | Operating cash flow | | | | | 212,906,000 | 191,016,000 | 175,334,000 | 196,707,000 | -153,793,000 | 171,429,000 | 201,426,000 | 162,399,000 | 82,236,000 | 109,860,000 | | Capital expenditures | | | | | 87,580,000 | 56,282,000 | 65,355,000 | 77,820,000 | 31,114,000 | 33,030,000 | 54,974,000 | 54,997,000 | 50,891,000 | 31,605,000 | | Dividends paid | | | | | 65,073,000 | 63,823,000 | 79,795,000 | 72,565,000 | 7,160,000 | 0.00 | 13,476,000 | 12,159,000 | 10,452,000 | 9,652,000 | | Share buybacks | | | | | 50,000,000 | 9,375,000 | 47,530,000 | 141,629,000 | 0.00 | 0.00 | 147,549,000 | 102,188,000 | 68,553,000 | 0.00 | | Assets | | | | | 1,428,476,000 | 1,421,517,000 | 1,620,584,000 | 2,465,070,000 | 1,976,595,000 | 2,014,634,000 | 2,009,618,000 | 2,076,232,000 | 2,009,224,000 | 1,947,633,000 | | Liabilities | | | | | 490,988,000 | 466,266,000 | 788,207,000 | 1,744,156,000 | 1,733,578,000 | 1,602,238,000 | 1,573,562,000 | 1,713,724,000 | 1,727,449,000 | 1,659,873,000 | | Stockholders' equity | | | | | 942,236,000 | 955,251,000 | 832,377,000 | 720,914,000 | 243,017,000 | 412,396,000 | 432,901,000 | 359,220,000 | 278,491,000 | 282,486,000 | | Cash and cash equivalents | | | | | 110,657,000 | 175,932,000 | 99,369,000 | 86,564,000 | 59,581,000 | 72,691,000 | 58,766,000 | 49,173,000 | 44,752,000 | 50,871,000 | | Free cash flow | | | | | 125,326,000 | 134,734,000 | 109,979,000 | 118,887,000 | -184,907,000 | 138,399,000 | 146,452,000 | 107,402,000 | 31,345,000 | 78,255,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2011 | 2012 | 2013 | 2014 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | | | | | | | | | -21.87% | 4.83% | 4.91% | 0.95% | -0.35% | -0.29% | | Operating margin | | | | | 7.36% | 4.46% | 1.86% | 3.64% | -26.24% | 6.42% | 5.65% | 2.35% | 1.16% | 1.65% | | Return on equity | | | | | | | | | -201.10% | 37.46% | 37.58% | 8.09% | -3.79% | -2.96% | | Return on assets | | | | | | | | | -24.73% | 7.67% | 8.09% | 1.40% | -0.53% | -0.43% | | Liabilities / equity | | | | | 0.52 | 0.49 | 0.95 | 2.42 | 7.13 | 3.89 | 3.63 | 4.77 | 6.20 | 5.88 | | Current ratio | | | | | 2.40 | 2.66 | 2.06 | 1.32 | 1.04 | 1.20 | 1.24 | 1.25 | 1.24 | 1.20 | ## As-reported value updates 2 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/DBI/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-06-09. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001319947.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q2 | 2022-07-30 | | | 0.62 | reported discrete quarter | | 2022-Q3 | 2022-10-29 | | | 0.65 | reported discrete quarter | | 2023-Q1 | 2023-04-29 | | | 0.17 | reported discrete quarter | | 2023-Q2 | 2023-07-29 | 792,217,000 | 37,204,000 | 0.56 | reported discrete quarter | | 2023-Q3 | 2023-10-28 | 786,329,000 | 10,141,000 | 0.17 | reported discrete quarter | | 2023-Q4 | 2024-02-03 | 754,348,000 | -29,698,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-05-04 | 746,596,000 | 783,000 | 0.01 | reported discrete quarter | | 2024-Q2 | 2024-08-03 | 771,900,000 | 13,824,000 | 0.24 | reported discrete quarter | | 2024-Q3 | 2024-11-02 | 777,194,000 | 13,012,000 | 0.24 | reported discrete quarter | | 2024-Q4 | 2025-02-01 | 713,572,000 | -38,168,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-05-03 | 686,909,000 | -17,424,000 | -0.36 | reported discrete quarter | | 2025-Q2 | 2025-08-02 | 739,762,000 | 10,827,000 | 0.22 | reported discrete quarter | | 2025-Q3 | 2025-11-01 | 752,411,000 | 18,215,000 | 0.35 | reported discrete quarter | | 2025-Q4 | 2026-01-31 | 713,589,000 | -19,992,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-05-02 | 696,350,000 | 1,159,000 | 0.02 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from DBI's latest 10-K: [/company/DBI/business/](/company/DBI/business/). ## Risk Factors Verbatim Item 1A Risk Factors from DBI's latest 10-K: [/company/DBI/risk-factors/](/company/DBI/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1319947/000131994726000041/dsw-20260502.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-06-09 Report date: 2026-05-02 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS EXECUTIVE OVERVIEW AND TRENDS IN OUR BUSINESS As described in Note 1 to the condensed consolidated financial statements of this Form 10-Q, we have made immaterial corrections to comparative prior period amounts. Refer to Note 12 of the condensed consolidated financial statements of this Form 10-Q for quantification of the prior period restatement impacts. For the first quarter of 2026, net sales increased 1.4% with a decrease in total comparable sales of 1.1% when compared to the same period last year. Gross profit as a percentage of net sales for the first quarter of 2026 was 45.3%, an increase of 240 basis points when compared to the same period last year. EFFECTS OF MACROECONOMIC CONDITIONS AND TARIFFS Macroeconomic conditions influenced by uncertain tariff policies, inflation, elevated fuel prices, stock market indices, interest rates and employment levels, along with geopolitical unrest, continue to persist and create a challenging retail environment. Consumer spending on discretionary items, including our products, generally declines during periods of economic uncertainty, when disposable income is reduced, or when there is a reduction in consumer confidence. We believe these ongoing uncertainties have had a negative impact on our operating results and liquidity during 2026 and we may continue to experience the impact of decreased consumer demand for our products and lower direct-to-consumer traffic. We have enacted certain mitigating actions, including alignment of inventory with current demand levels and expense reductions. Although we have made progress in mitigating the impacts of certain macroeconomic conditions, our actions are not necessarily complete, and they should be viewed as part of the process in which we will continue our efforts to better align our cost structure with our operating results. We are unable to predict the severity of macroeconomic uncertainty, whether or when such circumstances may improve or worsen, including from one of our quarterly reporting periods to the next, or the full impact such circumstances could have on our business. These factors ultimately could require us to enact further mitigating operating efficiency measures that could have a material adverse effect on our business, results of operations, and liquidity. Following its January 2025 inauguration, the U.S. administration has taken action to increase tariffs assessed on most products imported into the U.S. Various modifications to the U.S. tariffs have been announced, and further changes are expected to be made in the future, including in response to litigation, which has introduced heightened uncertainty regarding the future of global trade and the impact to our cost structure. On February 20, 2026, the U.S. Supreme Court rendered a decision invalidating tariffs imposed under the IEEPA. During April 2026, the CBP launched the CAPE process, which allows entities to submit refund claims for paid IEEPA tariffs. We have submitted claims seeking refunds of previously paid IEEPA tariffs through CAPE. The timing of any refunds and the total amount ultimately received or recorded remains uncertain, and we cannot provide any assurance that we will receive the full amount expected. Further, following the U.S. Supreme Court decision, the U.S. administration imposed a new tariff surcharge of not less than 10% under Section 122 of the Trade Act of 1974 on all imports, subject to certain exceptions. The tariffs under this statute took effect on February 24, 2026, and will remain in effect for 150 days (the maximum under the statute). Tariffs have not been previously imposed under this statutory provision, and, in May 2026, the U.S. Court of International Trade invalidated these temporary tariffs, but they remain in place, subject to appeal. The U.S. administration has indicated future actions may be taken that could restore or exceed the level of the IEEPA tariffs under other statutory provisions. Any future tariffs or other trade policy actions could affect our cost structure and supply chain. All of the products manufactured through the Brand Portfolio segment come from third-party facilities outside of the U.S., with the majority of our units sourced from Asia. In addition to the merchandise sourced through our Brand Portfolio segment, our Retail segment also sources merchandise from third-party suppliers, with many of these suppliers importing a large portion of their merchandise from Asia. We are closely monitoring this situation and evaluating the actions we have taken and additional actions we may take in the future, including cost mitigation measures and price adjustments. For our Brand Portfolio segment, we have adjusted our sourcing diversification by optimizing where we source our products from in an effort to mitigate the risk, maximize flexibility, and decrease costs. However, sourcing diversification could result in product quality issues, higher product costs, and/or not being able to source the quantity desired on a timely basis and there can be no assurance that we will be able to fully mitigate the impact of such tariffs or new tariffs in Asia or elsewhere. The ultimate impact of tariffs and other trade policies on our business will depend on several factors, including future measures implemented by the U.S. government and the governments of other countries, the overall magnitude and duration of these measures, and our ability to mitigate effects, which could include higher import costs and our ability to obtain any refund. Accordingly, our financial position or results of operations may be adversely influenced by political, economic, legal, compliance, social, and business conditions in the U.S. and in other countries. 18 Table of contents Future impacts from macroeconomic conditions and tariffs are unknown at this time and could have a material adverse effect on our business, results of operations, and liquidity. Unfavorable developments may result in future write-downs or adjustments to inventories, receivables, the valuation allowance on deferred tax assets, and may also negatively impact the fair value of our reporting units, indefinite-lived tradenames, and long-lived assets, which could result in us recording impairment charges for amounts below their carrying value. FINANCIAL SUMMARY AND OTHER KEY METRICS For the three months ended May 2, 2026: •Net sales increased to $696.4 million from $686.9 million for the same period last year. •Gross profit as a percentage of net sales was 45.3% compared to 42.9% for the same period last year. •Net income attributable to Designer Brands Inc. was $1.2 million, or $0.02 per diluted share, compared to a net loss attributable to Designer Brands Inc. of $17.8 million, or $0.37 loss per diluted share, for the same period last year. Comparable Sales Performance Metric- The following table presents the percent change in comparable sales for each segment and in total: [[GREPCENT_TABLE]] [["","Three months ended"],["","May 2, 2026","","May 3, 2025"],["Change in comparable sales:"],["Retail segment","(1.2)","%","","(7.5)","%"],["Brand Portfolio segment - direct-to-consumer channel","3.0","%","","(27.0)","%"],["Total","(1.1)","%","","(7.8)","%"]] [[/GREPCENT_TABLE]] We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the Retail segment. Comparable sales in Canada exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation. Number of Stores- As of May 2, 2026 and May 3, 2025, we had the following number of stores: [[GREPCENT_TABLE]] [["","May 2, 2026","","May 3, 2025"],["DSW","518","","","520"],["The Shoe Co.","118","","","121"],["Rubino","27","","","28"],["Total number of stores","663","","","669"]] [[/GREPCENT_TABLE]] 19 Table of contents RESULTS OF OPERATIONS FIRST QUARTER OF 2026 COMPARED WITH FIRST QUARTER OF 2025 [[GREPCENT_TABLE]] [["(amounts in thousands, except per share amounts)","Three months ended"],["May 2, 2026","","May 3, 2025","","Change"],["","Amount","","% of Net Sales","","Amount","","% of Net Sales","","Amount","","%"],["Net sales","$","696,350","","","100.0","%","","$","686,909","","","100.0","%","","$","9,441","","","1.4","%"],["Cost of sales","(381,032)","","","(54.7)","","","(392,428)","","","(57.1)","","","11,396","","","(2.9)","%"],["Gross profit","315,318","","","45.3","","","294,481","","","42.9","","","20,837","","","7.1","%"],["Operating expenses","(299,209)","","","(43.0)","","","(301,862)","","","(43.9)","","","2,653","","","(0.9)","%"],["Income from equity investments","2,761","","","0.4","","","2,427","","","0.4","","","334","","","13.8","%"],["Impairment charges","\u2014","","","\u2014","","","(2,953)","","","(0.6)","","","2,953","","","NM"],["Operating profit (loss)","18,870","","","2.7","","","(7,907)","","","(1.2)","","","26,777","","","NM"],["Interest expense, net","(10,125)","","","(1.4)","","","(11,971)","","","(1.7)","","","1,846","","","(15.4)","%"],["Non-operating income (expenses), net","(5)","","","\u2014","","","8","","","\u2014","","","(13)","","","NM"],["Income (loss) before income taxes and loss from equity investment","8,740","","","1.3","","","(19,870)","","","(2.9)","","","28,610","","","NM"],["Income tax benefit (provision)","(4,805)","","","(0.8)","","","2,189","","","0.3","","","(6,994)","","","NM"],["Loss from equity investment","(481)","","","\u2014","","","\u2014","","","\u2014","","","(481)","","","NM"],["Net income (loss)","3,454","","","0.5","","","(17,681)","","","(2.6)","","","21,135","","","NM"],["Net income attributable to redeemable noncontrolling interest","(2,295)","","","(0.3)","","","(135)","","","\u2014","","","(2,160)","","","1,600.0","%"],["Net income (loss) attributable to Designer Brands Inc.","$","1,159","","","0.2","%","","$","(17,816)","","","(2.6)","%","","$","18,975","","","NM"],["Earnings (loss) per share attributable to Designer Brands Inc.:"],["Basic earnings (loss) per share","$","0.02","","","","","$","(0.37)","","","","","$","0.39","","","NM"],["Diluted earnings (loss) per share","$","0.02","","","","","$","(0.37)","","","","","$","0.39","","","NM"],["Weighted average shares used in per share calculations:"],["Basic shares","50,241","","","","","48,243","","","","","1,998","","","4.1","%"],["Diluted shares","55,920","","","","","48,243","","","","","7,677","","","15.9","%"]] [[/GREPCENT_TABLE]] NM - Not meaningful 20 Table of contents NET SALES The following table summarizes net sales by segment: [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1319947/000131994726000022/dsw-20260131.htm Complete FY 2026 MD&A: /company/DBI/mda/fy2026/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Confidence: high Filing date: 2026-03-30 Report date: 2026-01-31 ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This management's discussion and analysis of financial condition and results of operations contains forward-looking statements that involve various risks and uncertainties. See Cautionary Statement Regarding Forward-Looking Information for Purposes of the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of 1995 on page ii for a discussion of the uncertainties, risks, and assumptions associated with these statements. This discussion is best read in conjunction with our consolidated financial statements, including the notes thereto, set forth in Item 8. Financial Statements and Supplementary Data of this Form 10-K. The results of operations for the periods reflected herein are not necessarily indicative of results that may be expected for future periods, and our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including but not limited to those listed under Item 1A. Risk Factors of this Form 10-K and included elsewhere in this Form 10-K. Our two reportable segments are the Retail segment and the Brand Portfolio segment. Beginning with this 2025 Annual Report on Form 10-K, we aggregated our previously reported U.S. Retail operating segment and Canada Retail operating segment into a single reportable segment, the Retail segment, due to the similar nature of their operations and economic characteristics. This aggregation had no impact on our historical consolidated financial position, results of operations or cash flows. All prior period segment information has been recast to conform to the current reporting segment presentation. The following discussion includes a comparison of our results of operations and liquidity and capital resources for 2025 and 2024. Except where it may be useful in understanding 2025 results, we have omitted discussion of results for 2023, which may be found in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations of our Annual Report on Form 10-K for the year ended February 1, 2025, filed with the SEC on March 24, 2025. EXECUTIVE OVERVIEW AND TRENDS IN OUR BUSINESS For 2025, net sales decreased 3.9% with a decrease in total comparable sales of 4.3% over last year. Gross profit as a percentage of net sales for 2025 was 43.6%, an increase of 90 basis points when compared to last year. EFFECTS OF MACROECONOMIC CONDITIONS AND TARIFFS Macroeconomic conditions influenced by uncertain tariff policies, stock market indices, interest rates, inflation and employment levels, along with geopolitical unrest, continue to persist and create a challenging retail environment. Consumer spending on discretionary items, including our products, generally declines during periods of economic uncertainty, when disposable income is reduced, or when there is a reduction in consumer confidence. We believe these ongoing uncertainties have had a negative impact on our operating results and liquidity during 2025 and we may continue to experience the impact of decreased consumer demand for our products and lower direct-to-consumer traffic. We have enacted certain mitigating actions, including alignment of inventory with current demand levels, expense and capital expenditure reductions, and accelerating sourcing diversification efforts. Although we have made progress in mitigating the impacts of certain macroeconomic conditions, our actions are not necessarily complete, and they should be viewed as part of the process in which we will continue our efforts to better align our cost structure with our operating results. We are unable to predict the severity of macroeconomic uncertainty, whether or when such circumstances may improve or worsen, including from one of our quarterly reporting periods to the next, or the full impact such circumstances could have on our business. These factors ultimately could require us to enact further mitigating operating efficiency measures that could have a material adverse effect on our business, results of operations, and liquidity. Following its January 2025 inauguration, the U.S. administration has taken action to increase tariffs assessed on most products imported into the U.S. Various modifications to the U.S. tariffs have been announced, and further changes are expected to be made in the future, including in response to litigation, which has introduced heightened uncertainty regarding the future of global trade and the impact to our cost structure. On February 20, 2026, the U.S. Supreme Court rendered a decision invalidating tariffs imposed under the International Emergency Economic Powers Act (the "IEEPA"). The U.S. Supreme Court did not address refunds or remedies but instead remanded the matter to the U.S. Court of International Trade to address remedies. In response, the U.S. President issued an executive order rescinding the IEEPA tariffs and directing agencies to take measures to cease collection of the tariffs. Further, following the decision, the U.S. President imposed a new tariff surcharge of not less than 10% under Section 122 of the Trade Act of 1974 on all imports, subject to certain exceptions. The tariffs under this statute took effect on February 24, 2026, and will remain in effect for 150 days (the maximum under the statute). Tariffs have not been previously imposed under this statutory provision, and such tariffs may be increased. On March 4, 2026, the U.S. Court of International Trade ruled that companies that paid tariffs imposed under the IEEPA are due refunds. There remains substantial uncertainty regarding any refund processes and further uncertainty regarding future trade policy actions, and any 22 Table of contents future tariffs or other trade policy actions could affect our cost structure and supply chain. All of the products manufactured through the Brand Portfolio segment come from third-party facilities outside of the U.S., with the majority of our units sourced from Asia. In addition to the merchandise sourced through our Brand Portfolio segment, our Retail segment also sources merchandise from third-party suppliers, with many of these suppliers importing a large portion of their merchandise from Asia. We are closely monitoring this situation and evaluating the actions we have taken and additional actions we may take in the future, including cost mitigation measures and price adjustments. For our Brand Portfolio segment, we have adjusted our sourcing diversification by optimizing where we source our products from in an effort to mitigate the risk, maximize flexibility, and decrease costs. However, sourcing diversification could result in product quality issues, higher product costs, and/or not being able to source the quantity desired on a timely basis and there can be no assurance that we will be able to fully mitigate the impact of such tariffs or new tariffs in Asia or elsewhere. The ultimate impact of tariffs and other trade policies on our business will depend on several factors, including future measures implemented by the U.S. government and the governments of other countries, the overall magnitude and duration of these measures, and our ability to mitigate effects, which could include higher import costs and our ability to obtain any refund. Accordingly, our financial position or results of operations may be adversely influenced by political, economic, legal, compliance, social, and business conditions in the U.S. and in other countries. Future impacts from macroeconomic conditions and tariffs are unknown at this time and could have a material adverse effect on our business, results of operations, and liquidity. Unfavorable developments may result in future write-downs or adjustments to inventories, receivables, the valuation allowance on deferred tax assets, and may also negatively impact the fair value of our reporting units, indefinite-lived tradenames, and long-lived assets, which could result in us recording impairment charges for amounts below their carrying value. FINANCIAL SUMMARY AND OTHER KEY METRICS For 2025: •Net sales decreased to $2.9 billion from $3.0 billion last year. •Gross profit as a percentage of net sales was 43.6% compared to 42.7% in 2024. •Net loss attributable to Designer Brands Inc. was $8.4 million, or $0.17 loss per diluted share, compared to net loss attributable to Designer Brands Inc. of $10.5 million, or $0.20 loss per diluted share, last year. Comparable Sales Performance Metric- The following table presents the percent change in comparable sales for each segment and in total: [[GREPCENT_TABLE]] [["","2025","","2024"],["Change in comparable sales:"],["Retail segment","(3.9)","%","","(1.5)","%"],["Brand Portfolio segment - direct-to-consumer channel","(21.9)","%","","(9.5)","%"],["Total","(4.3)","%","","(1.7)","%"]] [[/GREPCENT_TABLE]] We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the Retail segment. Comparable sales in Canada exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. The calculation of comparable sales varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation. 23 Table of contents Number of Stores- The following table presents the number of stores by banner in our Retail segment: [[GREPCENT_TABLE]] [["","January 31, 2026","","February 1, 2025"],["DSW","519","","","520"],["The Shoe Co.","118","","","121"],["Rubino","28","","","28"],["Total number of stores","665","","","669"]] [[/GREPCENT_TABLE]] RESULTS OF OPERATIONS 2025 COMPARED WITH 2024 The following table presents our consolidated results of operations with associated percentages of net sales: [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2026 MD&A: /company/DBI/mda/fy2026/ All MD&A years: /company/DBI/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2025 MD&A](/company/DBI/mda/fy2025/): filed 2025-03-24; accession 0001319947-25-000012 (https://www.sec.gov/Archives/edgar/data/1319947/000131994725000012/dsw-20250201.htm) - [FY 2024 MD&A](/company/DBI/mda/fy2024/): filed 2024-03-25; accession 0001319947-24-000011 (https://www.sec.gov/Archives/edgar/data/1319947/000131994724000011/dsw-20240203.htm) - [FY 2023 MD&A](/company/DBI/mda/fy2023/): filed 2023-03-16; accession 0001319947-23-000014 (https://www.sec.gov/Archives/edgar/data/1319947/000131994723000014/dsw-20230128.htm) - [FY 2022 MD&A](/company/DBI/mda/fy2022/): filed 2022-03-21; accession 0001319947-22-000010 (https://www.sec.gov/Archives/edgar/data/1319947/000131994722000010/dsw-20220129.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 5661 Retail-Shoe Stores) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade - [PCE](/indicator/PCE/): Personal Consumption Expenditures - [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income - [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate - [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average - [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy - [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food - [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private - [UNRATE](/indicator/UNRATE/): Unemployment Rate - [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/DBI.md · JSON record: /company/DBI.json · verified financials: /company/DBI/financials.json / /company/DBI/financials.csv · machine TOC for the whole site: /llms.txt