In the fourth quarter, Designer Brands posted revenue of $713.59 million, which was a marginal increase from $713.57 million a year ago. This revenue figure was below analyst expectations of $718.91 million.
The firm reported a loss of $0.31 per share, an improvement from the prior year’s loss of $0.44 per share. This result exceeded the analysts’ estimate of a $0.50 loss per share.
Gross profit for the fourth quarter increased to $302.7 million from $282.6 million last year, with a gross margin of 42.4 percent compared to 39.6 percent a year earlier.
For the full year, net sales decreased by 3.9 percent to $2.9 billion, while adjusted diluted earnings per share was $0.16. Gross profit decreased to $1.26 billion from $1.29 billion last year, with a gross margin of 43.6 percent compared to 42.7 percent last year.
Looking ahead to fiscal year 2026, the company anticipates earnings to be between $0.28 and $0.38 per share, which is below the consensus estimate of $0.42 per share.
Doug Howe, Chief Executive Officer, stated, “We ended the year with fourth quarter net sales flat year-over-year and impressive gross margin expansion, driving full year adjusted operating income that significantly surpassed the high end of our guidance.”
