Designer Brands stock plunges as Q1 results miss estimates, guidance withdrawn

Published 10/06/2025, 11:54
© Reuters

Investing.com -- Designer Brands Inc. saw its stock tumble 17.4% premarket on Tuesday after reporting first-quarter earnings that fell short of analyst expectations and withdrawing its full-year guidance amid macroeconomic uncertainty.

The footwear retailer posted an adjusted loss of $0.26 per share for Q1, significantly wider than the $0.08 loss per share analysts had forecast. Revenue dropped 8% YoY to $686.9 million, missing the consensus estimate of $736.02 million. Comparable sales declined 7.8% compared to the same quarter last year.

CEO Doug Howe cited a "soft start to 2025 amid an unpredictable macro environment and deteriorating consumer sentiment" as reasons for the disappointing results. He noted the company is shifting focus to "amplifying value in our retail channels, preserving margins, controlling costs, and mitigating the impact of tariffs" in response to market volatility.

Designer Brands (NYSE:DBI) withdrew its previously issued full-year 2025 guidance, citing "macroeconomic uncertainty stemming primarily from global trade policies." The company now expects to deliver between $20 million to $30 million in cost savings over the course of 2025.

"Given the persistent instability and pressure on consumer discretionary spend, we’ve made the decision to withdraw our 2025 guidance for the time being," Howe stated.

 

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