Designer Brands Inc. (NYSE: DBI) reported fourth-quarter results that exceeded analyst expectations, though its outlook for the upcoming year was more cautious. Shares rose more than 2% intra-day Thursday following the announcement.
The footwear retailer reported an adjusted loss of $0.31 per share for the quarter ended January 31, 2026, beating the consensus estimate of a $0.51 loss. Revenue totaled $713.6 million, flat year over year but slightly above the $709.45 million analyst estimate.
Comparable sales declined 1.9% during the quarter, marking the third consecutive quarter of improving top-line trends.
Gross margin expanded significantly, rising 280 basis points to 42.4% from 39.6% in the prior-year period. The company attributed the margin improvement to disciplined execution and strategic initiatives. Full-year adjusted operating income came in well above the high end of guidance.
For fiscal 2026, Designer Brands expects earnings per share in the range of $0.28 to $0.38, with a midpoint of $0.33 below the analyst consensus of $0.42. The company forecasts net sales to range between a 1% decline and a 1% increase for the year.
