By Connor Hart

Designer Brands swung to a profit in its fiscal first quarter as sales rose, giving the retailer confidence to now expect hitting the high end of its outlook for the year.

The footwear-and-accessories company on Tuesday posted a profit of $1.16 million, or 2 cents a share, for its three months ended May 2, compared with a loss of $17.8 million, or 37 cents a share, a year earlier.

Stripping out certain one-time items, adjusted earnings came in at 7 cents a share.

Net sales ticked up 1.4% to $696.4 million.

Total comparable sales ebbed 1.1%, reflecting a 1.2% decline in the company's retail segment, offset by a 3% increase in the brand portfolio direct-to-consumer channel.

Chief Executive Doug Howe said that beyond top-line growth, Designer Brands delivered meaningful profitability gains thanks to structural improvements the company has made across inventory management, pricing and sourcing.

"Following our encouraging start to the year, we believe in our ability to achieve the high end of our fiscal 2026 EPS guidance range, even amidst ongoing uncertainty in the macroeconomic environment," he said.

Designer Brands previously guided for fiscal 2026 net sales to be down 1% to up 1%, and for fiscal-year earnings of 28 cents to 38 cents a share.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

June 09, 2026 07:21 ET (11:21 GMT)

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