Designer Brands (NYSE:DBI) experienced a sharp premarket decline in its stock price Tuesday, tumbling 17.4%, after the footwear retailer reported first-quarter earnings that significantly missed analyst expectations and subsequently withdrew its full-year guidance due to ongoing macroeconomic uncertainty.
The company posted an adjusted loss of $0.26 per share for the first quarter, a considerably wider loss than the $0.08 per share analysts had anticipated.
Revenue for the quarter also fell short, dropping 8% year-over-year to $686.9 million, compared to a consensus estimate of $736.02 million.
Comparable sales further reflected the challenging quarter, declining by 7.8% compared to the same period last year.
Citing "macroeconomic uncertainty stemming primarily from global trade policies," Designer Brands opted to withdraw its previously issued full-year 2025 guidance.
Looking ahead, the company stated it now expects to achieve between $20 million to $30 million in cost savings over the course of 2025.