DSW parent company off to ‘slow start;’ pulls guidance
Designer Brands Inc. swung to a loss in its first-quarter and reported top- and bottom-line results that missed Wall Street estimates, citing an “unpredictable macro environment and deteriorating consumer sentiment.”
The footwear giant and parent company of DSW also withdraw its full-year guidance, which had called for net sales growth in the low single digits, with earnings per share between $0.30 and $0.50.
“Given the persistent instability and pressure on consumer discretionary spend, we've made the decision to withdraw our 2025 guidance for the time being,” CEO Doug Howe said in the earnings release. “Moving forward, our efforts remain focused on disciplined execution of the initiatives within our control to build a business rooted in the strength of our brand, centered on the customer, and positioned for long-term value creation."
Regarding tariffs, Howe told analysts on the company’s earnings call that the company’s biggest concern is the indirect impact that the levies are having on “the uncertainty and the volatility on customer sentiment.”
Designer Brands reported a net loss of $17.4 million, or a loss of $0.36 per share, for the quarter ended May 3. The adjusted net loss was $12.5 million, or $0.26 a share, much bigger than the loss of $0.06 a share analysts had expected.
Total sales fell 8% to $686.9 million, missing estimates. The company’s U.S. retail division’s net sales declined 7.7% to $573.2 million. Total same-store sales were down 7.8%.
"We experienced a soft start to 2025 amid an unpredictable macro environment and deteriorating consumer sentiment," Howe stated in the release. "We have shifted our near-term focus to amplifying value in our retail channels, preserving margins, controlling costs, and mitigating the impact of tariffs as part of our response to this volatility."
As of May 3, the company operated a total of 669 stores, including 494 DSW stores in the United States.
