Designer Brands Q2 Earnings Expectations and Analyst Ratings

Designer Brands is set to release Q2 earnings before the opening bell on September 9. Analysts expect earnings of 22 cents per share, up from 29 cents in the previous year, and revenue of $737.85 million, down from $771.9 million. The company withdrew its FY25 guidance due to macroeconomic uncertainty. UBS analyst Jay Sole raised the price target from $3 to $4, while Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating with a price target of $4.

Designer Brands Inc. (DBI) is set to release its second quarter 2025 financial results before the opening bell on September 9. The company, one of the world’s largest footwear and accessories designers and retailers, is expected to report earnings of 22 cents per share, up from 29 cents in the previous year, according to analysts [2]. Revenue is projected to reach $737.85 million, down from $771.9 million a year earlier [2].

The company has faced a challenging 2025, with the first quarter reporting net sales of $686.9 million, a 8% year-over-year decline, and a 7.8% drop in comparable sales [1]. Gross profit fell from $330.0 million to $295.1 million, with margin contracting to 43.0% from 44.2% [1]. DBI posted a net loss of $17.4 million (diluted loss of $0.36/share), and an adjusted net loss of $12.5 million, or $0.26/share [1]. These results led to a sharp drop in the stock price.

CEO Doug Howe cited a volatile macroeconomic backdrop, weakening consumer sentiment, and heightened promotional pressure as reasons for the poor performance [1]. The company withdrew its full-year guidance due to continued economic and consumer uncertainty [1]. DBI has shifted its focus to amplifying value in its retail channels, preserving margins, controlling costs, and mitigating the impact of tariffs [1].

Analysts have revised their forecasts ahead of the earnings call. UBS analyst Jay Sole maintained a Neutral rating and raised the price target from $3 to $4 on September 4, 2025 [2]. Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating with a price target of $4 on September 3, 2025 [2].

Investors and analysts will closely watch the earnings call for signs of cost discipline, inventory management, and portfolio brand performance. Execution in consumer channels, progress on margin protection, and plans for the coveted fall/holiday season will be top-of-mind [1].

References:
[1] https://footwearmagazine.com/designer-brands-q2-2025-earnings-september-9/
[2] https://www.benzinga.com/analyst-stock-ratings/price-target/25/09/47531225/designer-brands-likely-to-report-lower-q2-earnings-these-most-accurate-analysts-revise-forecasts-ahead-of-earnings-call