Designer Brands stock rises 1.47 percent as guidance improves

Designer Brands (ISIN US2505651081) was trading at USD 6.22 on the NYSE at 1:09 p.m. ET on September 28, 2026, up 1.47 percent. The latest reported quarter delivered higher profitability and a sharply lifted full-year adjusted EPS outlook, according to Designer Brands on September 10, 2026.

Guidance lifts the earnings outlook

For the second quarter ended August 1, 2026, adjusted diluted EPS reached USD 0.34, compared with USD 0.26 consensus, while revenue declined 1.20 percent year over year to USD 730.6 million. The company raised full-year adjusted diluted EPS guidance to USD 0.47 to USD 0.52 from USD 0.28 to USD 0.38, with the new midpoint of USD 0.50 above the USD 0.39 consensus, Yahoo Finance reported on September 10, 2026.

The sales outlook also improved from a decline of 1.00 percent to growth of 1.00 percent to a range from flat to growth of 1.00 percent. That change makes earnings execution the central test for the stock because the guidance upgrade came while quarterly revenue was still below the prior-year level.

Margins rise as sales soften

Designer Brands reported gross profit of USD 365.4 million for the quarter, up from USD 322.5 million, and gross margin expanded to 50.00 percent from 43.60 percent. GAAP net income attributable to the company reached USD 17.6 million, or USD 0.31 per diluted share, while adjusted net income was USD 19.2 million.

The Brand Portfolio segment provided the clearest operating contrast: sales rose 17.90 percent, while total comparable sales declined 2.40 percent. Debt stood at USD 423.1 million at August 1, 2026, versus USD 516.3 million a year earlier, according to Designer Brands.

Analyst target remains above the quote

The average one-year analyst price target was revised to USD 6.63 on September 15, 2026, from USD 7.90, a 16.13 percent reduction, according to Nasdaq. At the USD 6.22 intraday quote, that average target stands 6.59 percent above the stock price.

Designer Brands also declared a USD 0.05 quarterly dividend for both common share classes, payable on October 7, 2026, to shareholders of record on September 24, 2026. The payment adds a defined shareholder date while the market weighs stronger margins against declining comparable sales.

Stock trades above its yearly low

Designer Brands stock was trading at USD 6.22 on September 28, 2026, with a session range of USD 5.85 to USD 6.25. The 52-week range is USD 3.11 to USD 9.17, and market capitalization is USD 315.8 million.

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