# EDGAR Filing Document

**Accession Number:** 0001319947
**File Stem:** 0001319947-26-000017
**Filing Date:** 2026-3
**Character Count:** 46512
**Document Hash:** 0e26b2339c901245d2519012ea82b161
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001319947-26-000017.hdr.sgml**: 20260326

**ACCESSION NUMBER**: 0001319947-26-000017

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 12

**CONFORMED PERIOD OF REPORT**: 20260326

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260326

**DATE AS OF CHANGE**: 20260326

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Designer Brands Inc.
- **CENTRAL INDEX KEY:** 0001319947
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-SHOE STORES [5661]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 310746639
- **STATE OF INCORPORATION:** OH
- **FISCAL YEAR END:** 0131

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-32545
- **FILM NUMBER:** 26794284

**BUSINESS ADDRESS:**
- **STREET 1:** 810 DSW DRIVE
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43219
- **BUSINESS PHONE:** (614) 237-7100

**MAIL ADDRESS:**
- **STREET 1:** 810 DSW DRIVE
- **CITY:** COLUMBUS
- **STATE:** OH
- **ZIP:** 43219

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** DSW Inc.
- **DATE OF NAME CHANGE:** 20050307

?xml version='1.0' encoding='ASCII'? dbi-20260326

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934**

**Date of Report (Date of earliest event reported): March 26, 2026** 

**Designer Brands Inc.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Ohio** | **001-32545** | **31-0746639** |
| (State or other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |

---

---

| | |
|:---|:---|
| **810 DSW Drive, Columbus, Ohio** | **43219** |
| (Address of Principal Executive Offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(614) 237-7100**

---

| |
|:---|
| **N/A** |
| (Former name or former address if changed since last report.) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| **Class A Common Shares, without par value** | **DBI** | **New York Stock Exchange** |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange

Act.&nbsp;&nbsp;&nbsp;&nbsp;☐

------

**Item 2.02 Results of Operations and Financial Condition.** 

On March 26, 2026, Designer Brands Inc. (the "Company") issued a press release announcing its consolidated financial results for the quarter and fiscal year ended January 31, 2026. A copy of the press release is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02, including Exhibit 99.1, is being furnished and shall not be deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of such section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

**Item 9.01 Financial Statements and Exhibits.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Exhibits.

---

| | |
|:---|:---|
| **Exhibit Number** | **Description** |
| <u>[99.1](q420258xkex991pressrelease.htm)</u> | <u>[Press Release of Designer Brands Inc., dated March 26, 2026.](q420258xkex991pressrelease.htm)</u> |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

------

**Signature** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | | |
|:---|:---|:---|:---|
| | | By: | **Designer Brands Inc.**<br>/s/ Lisa M. Yerrace |
| | | | Lisa M. Yerrace |
| | | | Senior Vice President, General Counsel and Corporate Secretary |
| Date: | March 26, 2026 |  |  |

---

## Exhibit 99.1

**Exhibit 99.1**

**Designer Brands Inc. Reports Fourth Quarter and Fiscal Year 2025 Financial Results**

*Third consecutive quarter of improved top line rate of change in comparable sales and net sales*

*Fourth quarter consolidated gross margin increased 280 basis points year-over-year*

*Full year adjusted operating income significantly above high end of guidance*

*2026 guidance reflects meaningful growth in profitability*

COLUMBUS, Ohio, March 26, 2026 - Designer Brands Inc. (NYSE: DBI) (the "Company," "we," "us," "our," and "Designer Brands"), one of the world's largest designers, producers, and retailers of footwear and accessories, today announced financial results for the three months and year ended January 31, 2026.

"Our fourth quarter and fiscal 2025 results reflect disciplined execution as we strengthened the business and delivered sequential improvement across key financial metrics throughout the year," said Doug Howe, Chief Executive Officer. "We ended the year with fourth quarter net sales flat year-over-year and impressive gross margin expansion, driving full year adjusted operating income that significantly surpassed the high end of our guidance. As we enter fiscal 2026, we remain focused on our strategic priorities, executing the initiatives within our control, and building on the momentum we've established. We believe this focus will drive continued improvement in both sales and profitability over the long-term."

**<u>Fourth Quarter Operating Results</u>** *(Unless otherwise stated, all comparisons are to the fourth quarter of 2024)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net sales were $713.6 million, flat to last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total comparable sales decreased by 1.9%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Gross profit increased to $302.7 million versus $282.6 million last year, and gross margin was 42.4% compared to 39.6% last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Reported net loss attributable to Designer Brands Inc. was $20.0 million, or loss per diluted share of $0.40.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net loss was $15.6 million, or $0.31 loss per diluted share.

------

**<u>Full Year Operating Results</u>** *(Unless otherwise stated, all comparisons are to full year 2024)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Net sales decreased 3.9% to $2.9 billion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total comparable sales decreased by 4.3%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Gross profit decreased to $1.26 billion versus $1.29 billion last year, and gross margin was 43.6% compared to 42.7% last year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Reported net loss attributable to Designer Brands Inc. was $8.4 million, or loss per diluted share of $0.17.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted net income was $8.3 million, or adjusted diluted earnings per share of $0.16.

**<u>Liquidity</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Cash and cash equivalents totaled $50.9 million at the end of 2025, compared to $44.8 million at the end of 2024, with $101.1 million available for borrowings under our senior secured asset-based revolving credit facility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Debt totaled $435.0 million at the end of 2025, compared to $491.0 million at the end of 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***•*** Inventories totaled $563.5 million at the end of 2025, compared to $599.8 million at the end of 2024.

**<u>Return to Shareholders</u>**

A dividend of $0.05 per share of Class A and Class B common shares will be paid on April 10, 2026 to shareholders of record at the close of business on March 26, 2026.

**<u>Store Count</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| *(square footage in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 |
|  | **Number of Stores** | **Square Footage** | Number of Stores | Square Footage |
| DSW stores | **519** | **10177** | 520 | 10252 |
| The Shoe Co. stores | **118** | **598** | 121 | 623 |
| Rubino stores | **28** | **147** | 28 | 149 |
| Total number of stores | **665** | **10922** | 669 | 11024 |

---

------

**<u>2026 Financial Outlook</u>**

The Company has announced the following guidance for the full year 2026:

---

| | |
|:---|:---|
| **Metric** | **2026 Guidance** |
| Designer Brands Change in Net Sales | Down 1% to Up 1% |
| Effective tax rate | 40% |
| Diluted Earnings per Share | $0.28 - $0.38 |
| Weighted average diluted shares | 58 million |

---

**<u>Webcast and Conference Call</u>**

The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial in, 1-412-317-6061, and reference conference ID number 7219648 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com:

https://app.webinar.net/3zpg2dvElJL

For those unable to listen to the live webcast, an archived version will be available at the same location until April 9, 2026. A replay of the teleconference will be available by dialing the following numbers:

North America: 1-855-669-9658

International: 1-412-317-0088

Passcode: 3859679

Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the site to access this information.

**<u>About Designer Brands</u>**

Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of being shoe obsessed. With a diversified, world-class portfolio of coveted brands, including Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Lucky Brand, Mix No. 6, Crown Vintage and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions delivered to the consumer through a robust direct-to-

------

**<u>Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995</u>**

Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors, many of which are outside of the Company's control, that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic and financial conditions, including economic volatility and potential downturn or recession, supply chain disruptions, new or increased tariffs and other barriers to trade, fluctuating interest rates, unemployment rates and inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and

------

the frequency and severity of weather events increases; our ability to execute on our business strategies, including growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, integrating previously acquired businesses and brands, and meeting consumer demands;&nbsp;&nbsp;&nbsp;&nbsp; our ability to maintain strong relationships with our suppliers, vendors, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, and payment processing services whether as a result of reliance on third-party providers or otherwise; our reliance on third parties to provide customer payment processing services; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems, including the use of artificial intelligence tools; our ability to protect our reputation and to maintain the brands we license; our reliance on our reward programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended, and our senior secured term loan credit agreement, as amended, that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with laws and regulations, as well as other legal obligations; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's latest Annual Report on Form 10-K or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, the Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances.

------

**DESIGNER BRANDS INC.** 

**SEGMENT RESULTS**

(unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** | **Net Sales** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | | |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % |
| Segment net sales: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $**655920** | **87.7%** | $656755 | 88.3% | $(835) | (0.1)% |
| &nbsp;&nbsp;Brand Portfolio | **91883** | **12.3** | 87266 | 11.7 | 4617 | 5.3% |
| &nbsp;&nbsp;Total segment net sales | **747803** | **100.0%** | 744021 | 100.0% | 3782 | 0.5% |
| Elimination of intersegment net sales | **(34214)** |  | (30449) |  | (3765) | 12.4% |
| Consolidated net sales | $**713589** |  | $713572 |  | $17 | —% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | | |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % |
| Segment net sales: |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $**2656809** | **88.0%** | $2749124 | 87.3% | $(92315) | (3.4)% |
| &nbsp;&nbsp;Brand Portfolio | **362861** | **12.0** | 398881 | 12.7 | (36020) | (9.0)% |
| &nbsp;&nbsp;Total segment net sales | **3019670** | **100.0%** | 3148005 | 100.0% | (128335) | (4.1)% |
| Elimination of intersegment net sales | **(126999)** |  | (138743) |  | 11744 | (8.5)% |
| Consolidated net sales | $**2892671** |  | $3009262 |  | $(116591) | (3.9)% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Comparable Sales** | **Comparable Sales** | **Comparable Sales** | **Comparable Sales** | **Comparable Sales** |
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
|  | **January 31, 2026** | February 1, 2025 | **January 31, 2026** | February 1, 2025 |
| Change in comparable sales: |  |  |  |  |
| &nbsp;&nbsp;Retail segment | **(1.7)%** | 1.0% | **(3.9)%** | (1.5)% |
| &nbsp;&nbsp;Brand Portfolio segment - direct-to-consumer channel | **(11.4)%** | (17.1)% | **(21.9)%** | (9.5)% |
| &nbsp;&nbsp;Total | **(1.9)%** | 0.5% | **(4.3)%** | (1.7)% |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** | **Gross Profit** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | | | |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment gross profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $**275058** | **41.9%** | $265878 | 40.5% | $9180 | 3.5% | 140 |
| &nbsp;&nbsp;Brand Portfolio | **28644** | **31.2%** | 18389 | 21.1% | 10255 | 55.8% | 1010 |
| &nbsp;&nbsp;Total segment gross profit | **303702** | **40.6%** | 284267 | 38.2% | 19435 | 6.8% | 240 |
| Net elimination of intersegment gross profit | **(990)** |  | (1684) |  | 694 |  |  |
| Consolidated gross profit | $**302712** | **42.4%** | $282583 | 39.6% | $20129 | 7.1% | 280 |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | | | |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment gross profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $**1152705** | **43.4%** | $1186228 | 43.1% | $(33523) | (2.8)% | 30 |
| &nbsp;&nbsp;Brand Portfolio | **102791** | **28.3%** | 109814 | 27.5% | (7023) | (6.4)% | 80 |
| &nbsp;&nbsp;Total segment gross profit | **1255496** | **41.6%** | 1296042 | 41.2% | (40546) | (3.1)% | 40 |
| Net recognition (elimination) of intersegment gross profit | **4894** |  | (10084) |  | 14978 |  |  |
| Consolidated gross profit | $**1260390** | **43.6%** | $1285958 | 42.7% | $(25568) | (2.0)% | 90 |

---

---

| | | |
|:---|:---|:---|
| **Intersegment Recognition and Elimination Activity** | **Intersegment Recognition and Elimination Activity** | **Intersegment Recognition and Elimination Activity** |
| | **Three months ended** | **Three months ended** |
| *(in thousands)* | **January 31, 2026** | February 1, 2025 |
| Intersegment recognition and elimination activity: |  |  |
| &nbsp;&nbsp;Elimination of net sales recognized by Brand Portfolio segment | $**(34214)** | $(30449) |
| &nbsp;&nbsp;Cost of sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Elimination of cost of sales recognized by Brand Portfolio segment | **24322** | 19048 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period | **8902** | 9717 |
|  | $**(990)** | $(1684) |

---

------

---

| | | |
|:---|:---|:---|
| | **Twelve months ended** | **Twelve months ended** |
| *(in thousands)* | **January 31, 2026** | February 1, 2025 |
| Intersegment recognition and elimination activity: |  |  |
| &nbsp;&nbsp;Elimination of net sales recognized by Brand Portfolio segment | $**(126999)** | $(138743) |
| &nbsp;&nbsp;Cost of sales: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Elimination of cost of sales recognized by Brand Portfolio segment | **92850** | 95138 |
| &nbsp;&nbsp;&nbsp;&nbsp;Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period | **39043** | 33521 |
|  | $**4894** | $(10084) |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** | **Operating Profit (Loss)** |
| | **Three months ended** | **Three months ended** | **Three months ended** | **Three months ended** | | | |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment operating profit (loss): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $**29912** | **4.6%** | $24463 | 3.7% | $5449 | 22.3% | 90 |
| &nbsp;&nbsp;&nbsp;Brand Portfolio | **3667** | **4.0%** | (4425) | (5.1)% | 8092 | NM | NM |
| Total segment operating profit | **33579** | **4.5%** | 20038 | 2.7% | 13541 | 67.6% | 180 |
| Corporate/Eliminations | **(47799)** |  | (45892) |  | (1907) | 4.2% |  |
| Consolidated operating loss | $**(14220)** | **(2.0)%** | $(25854) | (3.6)% | $11634 | (45.0)% | 160 |

---

NM - Not meaningful

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** | **Twelve months ended** |
| *(dollars in thousands)* | **January 31, 2026** | **January 31, 2026** | February 1, 2025 | February 1, 2025 | Change | Change | Change |
|  | **Amount** | **% of Segment Net Sales** | Amount | % of Segment Net Sales | Amount | % | Basis Points |
| Segment operating profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Retail | $**211552** | **8.0%** | $249442 | 9.1% | $(37890) | (15.2)% | (110) |
| &nbsp;&nbsp;&nbsp;Brand Portfolio | **10908** | **3.0%** | 3225 | 0.8% | 7683 | 238.2% | 220 |
| Total segment operating profit | **222460** | **7.4%** | 252667 | 8.0% | (30207) | (12.0)% | (60) |
| Corporate/Eliminations | **(174696)** |  | (217734) |  | 43038 | (19.8)% |  |
| Consolidated operating profit | $**47764** | **1.7%** | $34933 | 1.2% | $12831 | 36.7% | 50 |

---

------

**Recast of Retail Segment**

Beginning with the fourth quarter of 2025, we aggregated our previously reported U.S. Retail operating segment and Canada Retail operating segment into a single reportable segment, the Retail segment, due to the similar nature of their operations and economic characteristics. This aggregation had no impact on our historical consolidated financial position, results of operations, or cash flows. All prior period segment information has been recast to conform to the current reporting segment presentation. The below tables present amounts for the first, second, and third quarters of 2025 and 2024 recast to conform to the current reporting segment presentation.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | | | |
| *(dollars in thousands)* | May 3, 2025 | May 3, 2025 | May 4, 2024 | May 4, 2024 | Change | Change | Change |
|  | Amount | % of Segment Net Sales | Amount | % of Segment Net Sales | Amount | % | Comparable Sales |
| Segment net sales: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $627145 | 86.7% | $676879 | 86.7% | $(49734) | (7.3)% | (7.5)% |
| &nbsp;&nbsp;Brand Portfolio | 95898 | 13.3 | 104130 | 13.3 | (8232) | (7.9)% | (27.0)% |
| &nbsp;&nbsp;Total segment net sales | 723043 | 100.0% | 781009 | 100.0% | (57966) | (7.4)% | (7.8)% |
| Elimination of intersegment net sales | (36134) |  | (34413) |  | (1721) | 5.0% |  |
| Consolidated net sales | $686909 |  | $746596 |  | $(59687) | (8.0)% |  |
| Segment gross profit: |  |  |  |  |  |  | Basis Point Change |
| &nbsp;&nbsp;Retail | $268200 | 42.8% | $300782 | 44.4% | $(32582) | (10.8)% | (160) |
| &nbsp;&nbsp;Brand Portfolio | 26671 | 27.8% | 33477 | 32.1% | (6806) | (20.3)% | (430) |
| Total segment gross profit | 294871 | 40.8% | 334259 | 42.8% | (39388) | (11.8)% | (200) |
| Net recognition (elimination) of intersegment gross profit | 255 |  | (4248) |  | 4503 |  |  |
| Consolidated gross profit | $295126 | 43.0% | $330011 | 44.2% | $(34885) | (10.6)% | (120) |
| Segment operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $228227 | 36.4% | $233413 | 34.5% | $(5186) | (2.2)% | 190 |
| &nbsp;&nbsp;Brand Portfolio | 26507 | 27.6% | 34385 | 33.0% | (7878) | (22.9)% | (540) |
| Total segment operating expenses | 254734 | 35.2% | 267798 | 34.3% | (13064) | (4.9)% | 90 |
| Corporate | 47128 |  | 55695 |  | (8567) | (15.4)% |  |
| Consolidated operating expenses | $301862 | 43.9% | $323493 | 43.3% | $(21631) | (6.7)% | 60 |
| Segment operating profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $39973 | 6.4% | $67369 | 10.0% | $(27396) | (40.7)% | (360) |
| &nbsp;&nbsp;Brand Portfolio | 2591 | 2.7% | 1956 | 1.9% | 635 | 32.5% | 80 |
| Total segment operating profit | 42564 | 5.9% | 69325 | 8.9% | (26761) | (38.6)% | (300) |
| Corporate/Eliminations | (49826) |  | (59943) |  | 10117 | (16.9)% |  |
| Consolidated operating profit (loss) | $(7262) | (1.1)% | $9382 | 1.3% | $(16644) | NM | NM |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | | | |
| *(dollars in thousands)* | August 2, 2025 | August 2, 2025 | August 3, 2024 | August 3, 2024 | Change | Change | Change |
|  | Amount | % of Segment Net Sales | Amount | % of Segment Net Sales | Amount | % | Comparable Sales |
| Segment net sales: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $686003 | 90.4% | $716491 | 88.2% | $(30488) | (4.3)% | (4.5)% |
| &nbsp;&nbsp;Brand Portfolio | 73157 | 9.6 | 95993 | 11.8 | (22836) | (23.8)% | (29.2)% |
| &nbsp;&nbsp;Total segment net sales | 759160 | 100.0% | 812484 | 100.0% | (53324) | (6.6)% | (5.0)% |
| Elimination of intersegment net sales | (19398) |  | (40584) |  | 21186 | (52.2)% |  |
| Consolidated net sales | $739762 |  | $771900 |  | $(32138) | (4.2)% |  |
| Segment gross profit: |  |  |  |  |  |  | Basis Point Change |
| &nbsp;&nbsp;Retail | $299472 | 43.7% | $318003 | 44.4% | $(18531) | (5.8)% | (70) |
| &nbsp;&nbsp;Brand Portfolio | 18508 | 25.3% | 26635 | 27.7% | (8127) | (30.5)% | (240) |
| Total segment gross profit | 317980 | 41.9% | 344638 | 42.4% | (26658) | (7.7)% | (50) |
| Net recognition (elimination) of intersegment gross profit | 4953 |  | (5089) |  | 10042 |  |  |
| Consolidated gross profit | $322933 | 43.7% | $339549 | 44.0% | $(16616) | (4.9)% | (30) |
| Segment operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $230763 | 33.6% | $231378 | 32.3% | $(615) | (0.3)% | 130 |
| &nbsp;&nbsp;Brand Portfolio | 24692 | 33.8% | 31259 | 32.6% | (6567) | (21.0)% | 120 |
| Total segment operating expenses | 255455 | 33.6% | 262637 | 32.3% | (7182) | (2.7)% | 130 |
| Corporate | 42007 |  | 50894 |  | (8887) | (17.5)% |  |
| Consolidated operating expenses | $297462 | 40.2% | $313531 | 40.6% | $(16069) | (5.1)% | (40) |
| Segment operating profit (loss): | Segment operating profit (loss): |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $68709 | 10.0% | $86625 | 12.1% | $(17916) | (20.7)% | (210) |
| &nbsp;&nbsp;Brand Portfolio | (3606) | (4.9)% | (2053) | (2.1)% | (1553) | 75.6% | (280) |
| Total segment operating profit | 65103 | 8.6% | 84572 | 10.4% | (19469) | (23.0)% | (180) |
| Corporate/Eliminations | (38520) |  | (55983) |  | 17463 | (31.2)% |  |
| Consolidated operating profit | $26583 | 3.6% | $28589 | 3.7% | $(2006) | (7.0)% | (10) |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Six months ended | Six months ended | Six months ended | Six months ended | | | |
| *(dollars in thousands)* | August 2, 2025 | August 2, 2025 | August 3, 2024 | August 3, 2024 | Change | Change | Change |
|  | Amount | % of Segment Net Sales | Amount | % of Segment Net Sales | Amount | % | Comparable Sales |
| Segment net sales: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $1313148 | 88.6% | $1393370 | 87.5% | $(80222) | (5.8)% | (6.0)% |
| &nbsp;&nbsp;Brand Portfolio | 169055 | 11.4 | 200123 | 12.5 | (31068) | (15.5)% | (28.1)% |
| &nbsp;&nbsp;Total segment net sales | 1482203 | 100.0% | 1593493 | 100.0% | (111290) | (7.0)% | (6.4)% |
| Elimination of intersegment net sales | (55532) |  | (74997) |  | 19465 | (26.0)% |  |
| Consolidated net sales | $1426671 |  | $1518496 |  | $(91825) | (6.0)% |  |
| Segment gross profit: |  |  |  |  |  |  | Basis Point Change |
| &nbsp;&nbsp;Retail | $567672 | 43.2% | $618785 | 44.4% | $(51113) | (8.3)% | (120) |
| &nbsp;&nbsp;Brand Portfolio | 45179 | 26.7% | 60112 | 30.0% | (14933) | (24.8)% | (330) |
| Total segment gross profit | 612851 | 41.3% | 678897 | 42.6% | (66046) | (9.7)% | (130) |
| Net recognition (elimination) of intersegment gross profit | 5208 |  | (9337) |  | 14545 |  |  |
| Consolidated gross profit | $618059 | 43.3% | $669560 | 44.1% | $(51501) | (7.7)% | (80) |
| Segment operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $458990 | 35.0% | $464791 | 33.4% | $(5801) | (1.2)% | 160 |
| &nbsp;&nbsp;Brand Portfolio | 51199 | 30.3% | 65644 | 32.8% | (14445) | (22.0)% | (250) |
| Total segment operating expenses | 510189 | 34.4% | 530435 | 33.3% | (20246) | (3.8)% | 110 |
| Corporate | 89135 |  | 106589 |  | (17454) | (16.4)% |  |
| Consolidated operating expenses | $599324 | 42.0% | $637024 | 42.0% | $(37700) | (5.9)% |  |
| Segment operating profit (loss): | Segment operating profit (loss): |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $108682 | 8.3% | $153994 | 11.1% | $(45312) | (29.4)% | (280) |
| &nbsp;&nbsp;Brand Portfolio | (1015) | (0.6)% | (97) | —% | (918) | 946.4% | (60) |
| Total segment operating profit | 107667 | 7.3% | 153897 | 9.7% | (46230) | (30.0)% | (240) |
| Corporate/Eliminations | (88346) |  | (115926) |  | 27580 | (23.8)% |  |
| Consolidated operating profit | $19321 | 1.4% | $37971 | 2.5% | $(18650) | (49.1)% | (110) |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Three months ended | Three months ended | Three months ended | Three months ended | | | |
| *(dollars in thousands)* | November 1, 2025 | November 1, 2025 | November 2, 2024 | November 2, 2024 | Change | Change | Change |
|  | Amount | % of Segment Net Sales | Amount | % of Segment Net Sales | Amount | % | Comparable Sales |
| Segment net sales: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $687741 | 87.1% | $698999 | 86.2% | $(11258) | (1.6)% | (2.1)% |
| &nbsp;&nbsp;Brand Portfolio | 101923 | 12.9 | 111492 | 13.8 | (9569) | (8.6)% | (21.5)% |
| &nbsp;&nbsp;Total segment net sales | 789664 | 100.0% | 810491 | 100.0% | (20827) | (2.6)% | (2.4)% |
| Elimination of intersegment net sales | (37253) |  | (33297) |  | (3956) | 11.9% |  |
| Consolidated net sales | $752411 |  | $777194 |  | $(24783) | (3.2)% |  |
| Segment gross profit: |  |  |  |  |  |  | Basis Point Change |
| &nbsp;&nbsp;Retail | $309975 | 45.1% | $301565 | 43.1% | $8410 | 2.8% | 200 |
| &nbsp;&nbsp;Brand Portfolio | 28968 | 28.4% | 31313 | 28.1% | (2345) | (7.5)% | 30 |
| Total segment gross profit | 338943 | 42.9% | 332878 | 41.1% | 6065 | 1.8% | 180 |
| Net recognition of intersegment gross profit | 676 |  | 937 |  | (261) |  |  |
| Consolidated gross profit | $339619 | 45.1% | $333815 | 43.0% | $5804 | 1.7% | 210 |
| Segment operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $237017 | 34.5% | $230580 | 33.0% | $6437 | 2.8% | 150 |
| &nbsp;&nbsp;Brand Portfolio | 23812 | 23.4% | 27150 | 24.4% | (3338) | (12.3)% | (100) |
| Total segment operating expenses | 260829 | 33.0% | 257730 | 31.8% | 3099 | 1.2% | 120 |
| Corporate | 39227 |  | 39097 |  | 130 | 0.3% |  |
| Consolidated operating expenses | $300056 | 39.9% | $296827 | 38.2% | $3229 | 1.1% | 170 |
| Segment operating profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $72958 | 10.6% | $70985 | 10.2% | $1973 | 2.8% | 40 |
| &nbsp;&nbsp;Brand Portfolio | 8256 | 8.1% | 7747 | 6.9% | 509 | 6.6% | 120 |
| Total segment operating profit | 81214 | 10.3% | 78732 | 9.7% | 2482 | 3.2% | 60 |
| Corporate/Eliminations | (38551) |  | (55916) |  | 17365 | (31.1)% |  |
| Consolidated operating profit | $42663 | 5.7% | $22816 | 2.9% | $19847 | 87.0% | 280 |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | Nine months ended | Nine months ended | Nine months ended | Nine months ended | | | |
| *(dollars in thousands)* | November 1, 2025 | November 1, 2025 | November 2, 2024 | November 2, 2024 | Change | Change | Change |
|  | Amount | % of Segment Net Sales | Amount | % of Segment Net Sales | Amount | % | Comparable Sales |
| Segment net sales: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $2000889 | 88.1% | $2092369 | 87.0% | $(91480) | (4.4)% | (4.7)% |
| &nbsp;&nbsp;Brand Portfolio | 270978 | 11.9 | 311615 | 13.0 | (40637) | (13.0)% | (25.9)% |
| &nbsp;&nbsp;Total segment net sales | 2271867 | 100.0% | 2403984 | 100.0% | (132117) | (5.5)% | (5.1)% |
| Elimination of intersegment net sales | (92785) |  | (108294) |  | 15509 | (14.3)% |  |
| Consolidated net sales | $2179082 |  | $2295690 |  | $(116608) | (5.1)% |  |
| Segment gross profit: |  |  |  |  |  |  | Basis Point Change |
| &nbsp;&nbsp;Retail | $877647 | 43.9% | $920350 | 44.0% | $(42703) | (4.6)% | (10) |
| &nbsp;&nbsp;Brand Portfolio | 74147 | 27.4% | 91425 | 29.3% | (17278) | (18.9)% | (190) |
| Total segment gross profit | 951794 | 41.9% | 1011775 | 42.1% | (59981) | (5.9)% | (20) |
| Net recognition (elimination) of intersegment gross profit | 5884 |  | (8400) |  | 14284 |  |  |
| Consolidated gross profit | $957678 | 43.9% | $1003375 | 43.7% | $(45697) | (4.6)% | 20 |
| Segment operating expenses: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $696007 | 34.8% | $695371 | 33.2% | $636 | 0.1% | 160 |
| &nbsp;&nbsp;Brand Portfolio | 75011 | 27.7% | 92794 | 29.8% | (17783) | (19.2)% | (210) |
| Total segment operating expenses | 771018 | 33.9% | 788165 | 32.8% | (17147) | (2.2)% | 110 |
| Corporate | 128362 |  | 145686 |  | (17324) | (11.9)% |  |
| Consolidated operating expenses | $899380 | 41.3% | $933851 | 40.7% | $(34471) | (3.7)% | 60 |
| Segment operating profit: |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Retail | $181640 | 9.1% | $224979 | 10.8% | $(43339) | (19.3)% | (170) |
| &nbsp;&nbsp;Brand Portfolio | 7241 | 2.7% | 7650 | 2.5% | (409) | (5.3)% | 20 |
| Total segment operating profit | 188881 | 8.3% | 232629 | 9.7% | (43748) | (18.8)% | (140) |
| Corporate/Eliminations | (126897) |  | (171842) |  | 44945 | (26.2)% |  |
| Consolidated operating profit | $61984 | 2.8% | $60787 | 2.6% | $1197 | 2.0% | 20 |

---

NM - Not meaningful

------

**DESIGNER BRANDS INC.**

**CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS**

(unaudited and in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
| | **January 31, 2026** | February 1, 2025 | **January 31, 2026** | February 1, 2025 |
| Net sales | $**713589** | $713572 | $**2892671** | $3009262 |
| Cost of sales | **(410877)** | (430989) | **(1632281)** | (1723304) |
| Gross profit | **302712** | 282583 | **1260390** | 1285958 |
| Operating expenses | **(319853)** | (311983) | **(1219233)** | (1245834) |
| Income from equity investments | **2921** | 4126 | **11026** | 13145 |
| Impairment charges | **—** | (580) | **(4419)** | (18336) |
| Operating profit (loss) | **(14220)** | (25854) | **47764** | 34933 |
| Interest expense, net | **(10383)** | (11130) | **(45338)** | (45291) |
| Non-operating income (expenses), net | **(88)** | 140 | **(192)** | (372) |
| Income (loss) before income taxes | **(24691)** | (36844) | **2234** | (10730) |
| Income tax benefit (provision) | **6504** | (1312) | **(6958)** | 755 |
| Loss from equity investment | **(847)** |  | **(847)** |  |
| Net loss | **(19034)** | (38156) | **(5571)** | (9975) |
| Net income attributable to redeemable noncontrolling interest | **(958)** | (12) | **(2803)** | (574) |
| Net loss attributable to Designer Brands Inc. | $**(19992)** | $(38168) | $**(8374)** | $(10549) |
| Diluted loss per share attributable to Designer Brands Inc. | $**(0.40)** | $(0.80) | $**(0.17)** | $(0.20) |
| Weighted average diluted shares | **49633** | 47919 | **49136** | 53657 |

---

------

**DESIGNER BRANDS INC.**

**CONDENSED CONSOLIDATED BALANCE SHEETS**

(unaudited and in thousands)

---

| | | |
|:---|:---|:---|
| | **January 31, 2026** | February 1, 2025 |
| ASSETS |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;Cash and cash equivalents | $**50871** | $44752 |
| &nbsp;&nbsp;Receivables, net | **59444** | 50371 |
| &nbsp;&nbsp;Inventories | **563547** | 599751 |
| &nbsp;&nbsp;Prepaid expenses and other current assets | **34286** | 39950 |
| &nbsp;&nbsp;Total current assets | **708148** | 734824 |
| Property and equipment, net | **213291** | 208199 |
| Operating lease assets | **675648** | 701621 |
| Goodwill | **130837** | 130386 |
| Intangible assets, net | **81242** | 84639 |
| Deferred tax assets | **35882** | 43324 |
| Equity investments | **56260** | 56761 |
| Other assets | **46325** | 49470 |
| Total assets | $**1947633** | $2009224 |
| LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;Accounts payable | $**236195** | $271524 |
| &nbsp;&nbsp;Accrued expenses | **170014** | 152153 |
| &nbsp;&nbsp;Current maturities of long-term debt | **6750** | 6750 |
| &nbsp;&nbsp;Current operating lease liabilities | **175515** | 159924 |
| &nbsp;&nbsp;Total current liabilities | **588474** | 590351 |
| Long-term debt | **428206** | 484285 |
| Non-current operating lease liabilities | **596587** | 635076 |
| Other non-current liabilities | **46606** | 17737 |
| Total liabilities | **1659873** | 1727449 |
| Redeemable noncontrolling interest | **5274** | 3284 |
| Total shareholders' equity | **282486** | 278491 |
| Total liabilities, redeemable noncontrolling interest, and shareholders' equity | $**1947633** | $2009224 |

---

------

**DESIGNER BRANDS INC.** 

**NON-GAAP RECONCILIATION**

(unaudited and in thousands, except per share amounts)

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three months ended** | **Three months ended** | **Twelve months ended** | **Twelve months ended** |
| | **January 31, 2026** | February 1, 2025 | **January 31, 2026** | February 1, 2025 |
| Operating expenses | $**(319853)** | $(311983) | $**(1219233)** | $(1245834) |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;Restructuring and integration costs | **3180** | 1729 | **13063** | 11843 |
| &nbsp;&nbsp;Acquisition-related costs | **—** |  | **—** | 2154 |
| &nbsp;&nbsp;Total non-GAAP adjustments | **3180** | 1729 | **13063** | 13997 |
| Adjusted operating expenses | $**(316673)** | $(310254) | $**(1206170)** | $(1231837) |
| Operating profit (loss) | $**(14220)** | $(25854) | $**47764** | $34933 |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;Restructuring and integration costs | **3180** | 1729 | **13063** | 11843 |
| &nbsp;&nbsp;Acquisition-related costs | **—** |  | **—** | 2154 |
| &nbsp;&nbsp;Impairment charges | **—** | 580 | **4419** | 18336 |
| &nbsp;&nbsp;Total non-GAAP adjustments | **3180** | 2309 | **17482** | 32333 |
| Adjusted operating profit (loss) | $**(11040)** | $(23545) | $**65246** | $67266 |
| Net loss attributable to Designer Brands Inc. | $**(19992)** | $(38168) | $**(8374)** | $(10549) |
| Non-GAAP adjustments: |  |  |  |  |
| &nbsp;&nbsp;Restructuring and integration costs | **3180** | 1729 | **13063** | 11843 |
| &nbsp;&nbsp;Acquisition-related costs | **—** |  | **—** | 2154 |
| &nbsp;&nbsp;Impairment charges | **—** | 580 | **4419** | 18336 |
| &nbsp;&nbsp;Foreign currency transaction losses (gains) | **88** | (141) | **192** | 371 |
| &nbsp;&nbsp;Total non-GAAP adjustments before tax effect | **3268** | 2168 | **17674** | 32704 |
| &nbsp;&nbsp;Tax effect on above non-GAAP adjustments | **(1083)** | 13567 | **(5199)** | (8458) |
| &nbsp;&nbsp;Valuation allowance change on deferred tax assets | **1280** | 1116 | **1354** | 768 |
| &nbsp;&nbsp;Total non-GAAP adjustments, after tax | **3465** | 16851 | **13829** | 25014 |
| &nbsp;&nbsp;Net income attributable to redeemable noncontrolling interest | **958** | 12 | **2803** | 574 |
| Adjusted net income (loss) | $**(15569)** | $(21305) | $**8258** | $15039 |
| Diluted loss per share | $**(0.40)** | $(0.80) | $**(0.17)** | $(0.20) |
| Adjusted diluted earnings (loss) per share | $**(0.31)** | $(0.44) | $**0.16** | $0.27 |

---

------

**<u>Non-GAAP Measures</u>**

To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the United States ("GAAP"), the Company uses certain non-GAAP financial measures, including adjusted operating expenses, adjusted operating profit (loss), adjusted net income (loss), and adjusted diluted earnings (loss) per share as shown in the table above. These measures adjust for the effects of: (1) restructuring and integration costs, including severance charges; (2) acquisition-related costs; (3) impairment charges; (4) foreign currency transaction losses (gains); (5) the net tax impact of such items; (6) the change in the valuation allowance on deferred tax assets; and (7) net income attributable to redeemable noncontrolling interest. The unaudited adjusted results should not be construed as an alternative to the reported results determined in accordance with GAAP. These financial measures are not based on any standardized methodology and are not necessarily comparable to similar measures presented by other companies. The Company believes that these non-GAAP financial measures provide useful information to both management and investors to increase comparability to prior periods by adjusting for certain items that may not be indicative of core operating measures and to better identify trends in our business. The adjusted financial results are used by management to, and allow investors to, evaluate the operating performance of the Company compared to prior periods, when reviewed in conjunction with the Company's GAAP statements. These amounts are not determined in accordance with GAAP and therefore should not be used exclusively in evaluating the Company's business and operations.

**<u>Comparable Sales Performance Metric</u>**

We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the Retail segment. Comparable sales in Canada exclude the impact of foreign currency translation and are calculated by translating current period results at the foreign currency exchange rate used in the comparable period of the prior year. Comparable sales include the e-commerce net sales of the Brand Portfolio segment from the direct-to-consumer e-commerce sites. The calculation of comparable sales

------

varies across the retail industry and, as a result, the calculations of other retail companies may not be consistent with our calculation.

CONTACT: Stacy Turnof, DesignerBrandsIR@edelman.com

<br>