Designer Brands (NYSE:DBI), the parent company of DSW and a global leader in brand development and footwear retail, today reported its financial results for the fourth quarter and full fiscal year ended January 31, 2026.
Net sales for the fourth quarter were $713.6 million, remaining essentially flat compared to the prior-year period.
However, the company achieved a substantial improvement in consolidated gross margin, which rose 280 basis points to 42.4%.
For the full fiscal year 2025, net sales reached $2.893 billion, a 3.9% decrease from the previous year, while full-year gross margins improved to 43.6%.
On a reported basis, Designer Brands recorded a fourth-quarter net loss of $20 million and a full-year net loss of $8.4 million.
After adjusting for one-time items and restructuring costs, the company reported an adjusted full-year net income of $8.3 million.
The discrepancy between reported and adjusted figures reflects the company's ongoing efforts to streamline its store fleet and integrate its high-margin brand portfolio.
The company ended the fiscal year with $50.9 million in cash and cash equivalents, against total debt of $435 million.
In a show of commitment to shareholder returns, the Board of Directors declared a quarterly dividend of $0.05 per share, payable on April 10, 2026, to shareholders of record as of March 27, 2026.
Looking ahead to fiscal 2026, Designer Brands issued guidance projecting net sales to range from a 1% decrease to a 1% increase.