Designer Brands Inc (NYSE:DBI) reported second-quarter adjusted earnings that topped analyst estimates and raised its full-year profit guidance, sending shares up 5.4%.
The footwear and accessories retailer posted adjusted earnings per share of $0.34 for the quarter, beating the average analyst estimate of $0.26.
Revenue came in at $730.6 million, down 1.2% from a year earlier and below the $745 million analysts had expected.
Adjusted net income rose to $19.2 million, ahead of the $15.5 million analysts had forecast, while operating profit reached $54.7 million, boosted by tariff recoveries. Adjusted gross margin expanded 430 basis points year-over-year to 47.9%, and gross margin including tariff recoveries stood at 50.0%.
By segment, retail net revenue fell 2.2% to $671.1 million, while brand portfolio revenue climbed 17.9% to $86.3 million. Comparable sales declined 2.4% for the quarter.
The company raised its full-year adjusted earnings per share guidance to a range of $0.47 to $0.52, up from prior expectations and above the $0.39 analysts had projected. Designer Brands now expects full-year revenue growth to be flat to up 1%.
