Exhibit 99.1
Designer Brands Inc. Reports Second Quarter of 2026 Financial Results
Raising full year guidance following strong operating performance and positive start to third quarter
Generated double-digit Brand Portfolio sales growth
Drove a meaningful improvement in profitability year-over-year
Reduced total debt by $93.0 million compared to the second quarter last year

COLUMBUS, Ohio, September 10, 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 second quarter ended August 1, 2026.

"Our second quarter results represent significant improvement in profitability year-over-year, highlighted by meaningful gross margin expansion as well as impressive sales growth in our Brand Portfolio segment," said Doug Howe, Chief Executive Officer. "We remain focused on generating long term value for our shareholders and are encouraged by the progress we are making against our strategic plan. These efforts have contributed to improved retail trends and a positive start to the third quarter, giving us confidence in raising our full year guidance."

Second Quarter of 2026 Operating Results (Unless otherwise stated, all comparisons are to the second quarter of 2025)
•Net sales decreased 1.2% to $730.6 million.
•Total comparable sales decreased by 2.4%.
•Reported gross profit was $365.4 million compared to $322.5 million last year, and gross margin was 50.0% compared to 43.6% last year.
•Adjusted gross profit was $350.0 million compared to $322.5 million last year, and adjusted gross margin was 47.9% compared to 43.6% last year.
•Reported net income attributable to Designer Brands Inc. was $17.6 million, or diluted earnings per share ("EPS") of $0.31.
•Adjusted net income was $19.2 million, or adjusted diluted EPS of $0.34.



Liquidity
•Cash and cash equivalents totaled $51.6 million at the end of the second quarter of 2026, compared to $44.9 million at the end of the same period last year, with $146.2 million available for borrowings under our senior secured asset-based revolving credit facility.
•Debt totaled $423.1 million at the end of the second quarter of 2026 compared to $516.3 million at the end of the same period last year, a reduction of approximately $93.0 million.
•The Company ended the second quarter of 2026 with inventories of $594.7 million compared to $610.9 million at the end of the same period last year.

Return to Shareholders
A dividend of $0.05 per share for both Class A and Class B common shares will be paid on October 7, 2026 to shareholders of record at the close of business on September 24, 2026.

Store Count
(square footage in thousands)August 1, 2026August 2, 2025
Number of StoresSquare FootageNumber of StoresSquare Footage
DSW stores523 10,225 519 10,197 
The Shoe Co. stores118 598 121 618 
Rubino stores27 141 28 147 
Total number of stores668 10,964 668 10,962 

During the six months ended August 1, 2026, the Company opened 7 new stores, closed 4 stores, and remodeled 3 stores.

2026 Financial Outlook
Following a strong start to the third quarter, the Company is raising its guidance for the full year 2026:
MetricPrevious Guidance
 Revised Guidance
Designer Brands Change in Net SalesDown 1% to Up 1%Flat to Up 1%
Adjusted Diluted Earnings per Share$0.28 - $0.38$0.47 - $0.52



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. Forward-looking adjusted diluted earnings per share excludes potential charges or gains that may be recorded during the fiscal year, including, among other things, tariff recoveries recorded to cost of sales and interest on tariff recoveries recorded to non-operating income used to pay interest expense to an unrelated financial investor (the "Investor"); interest expense on the financing transaction with the Investor and under-reported import duties; restructuring costs, including severance charges; impairment charges; foreign currency transaction gains or losses; net income or loss attributable to redeemable noncontrolling interest; and the net tax impact of such items and the potential change in the valuation allowance on deferred tax assets. A reconciliation of this forward-looking non-GAAP amount to the comparable GAAP measure is not provided, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items are uncertain and could have a substantial impact on GAAP measures of our financial performance. For additional information regarding the use of non-GAAP measures, refer to the Non-GAAP Measures section below.

Webcast and Conference Call
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 1127904 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/916wJ9QJZvG



For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until September 24, 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: 5663074

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

About Designer Brands
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-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and over 660 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in North America, Designer Brands delivers current, in-line footwear and accessories from the largest national brands in the industry and holds leading market share positions in key product categories across women's, men's, and kids'. Designer Brands also distributes its brands internationally through select wholesale and distributor relationships while also leveraging design and sourcing expertise to build private label products for national retailers. Designer Brands is committed to being a difference maker in the world and the footwear industry. By leading with our corporate values of We Belong and We Do What's Right, Designer Brands supports the global community and the health of the planet by donating more than thirteen million pairs of shoes to the global non-profit Soles4Souls since 2018. To learn more, visit www.designerbrands.com.



Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
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. Forward-looking statements in this press release include, but are not limited to, statements regarding our business and strategy and our current expectations about the Company's future operating results and financial condition, including our financial guidance for 2026. 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, geopolitical instability and conflicts, social unrest, new or increased tariffs and other barriers to trade, tariff refunds, 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 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; 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 Annual Report on Form 10-K for the fiscal year ended January 31, 2026 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
Three months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%
Segment net sales:
Retail $671,062 88.6 %$686,003 90.4 %$(14,941)(2.2)%
Brand Portfolio
86,279 11.4 73,157 9.6 13,122 17.9 %
Total segment net sales757,341 100.0 %759,160 100.0 %(1,819)(0.2)%
Elimination of intersegment net sales(26,710)(19,398)(7,312)37.7 %
Consolidated net sales$730,631 $739,762 $(9,131)(1.2)%

Six months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%
Segment net sales:
Retail$1,297,746 86.6 %$1,313,148 88.6 %$(15,402)(1.2)%
Brand Portfolio
200,797 13.4 169,055 11.4 31,742 18.8 %
Total segment net sales1,498,543 100.0 %1,482,203 100.0 %16,340 1.1 %
Elimination of intersegment net sales(71,562)(55,532)(16,030)28.9 %
Consolidated net sales$1,426,981 $1,426,671 $310 — %

Comparable Sales
Three months ended Six months ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Change in comparable sales:
Retail segment(2.6)%(4.5)%(1.9)%(6.0)%
Brand Portfolio segment - direct-to-consumer channel7.1 %(29.2)%5.0 %(28.1)%
Total(2.4)%(5.0)%(1.8)%(6.4)%




Gross Profit
Three months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%Basis Points
Segment gross profit:
Retail$301,469 44.9 %$299,472 43.7 %$1,997 0.7 %120
Brand Portfolio25,693 29.8 %18,068 24.7 %7,625 42.2 %510
Total segment gross profit327,162 43.2 %317,540 41.8 %9,622 3.0 %140
Corporate/eliminations:
Net recognition of intersegment gross profit2,657 4,953 (2,296)
Recoveries related to IEEPA tariff costs incurred35,536 — 35,536 
Consolidated gross profit$365,355 50.0 %$322,493 43.6 %$42,862 13.3 %640

Six months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%Basis Points
Segment gross profit:
Retail$585,765 45.1 %$567,672 43.2 %$18,093 3.2 %190
Brand Portfolio64,570 32.2 %44,094 26.1 %20,476 46.4 %610
Total segment gross profit650,335 43.4 %611,766 41.3 %38,569 6.3 %210
Corporate/eliminations:
Net recognition (elimination) of intersegment gross profit(5,198)5,208 (10,406)
Recoveries related to IEEPA tariff costs incurred35,536 — 35,536 
Consolidated gross profit$680,673 47.7 %$616,974 43.2 %$63,699 10.3 %450


Intersegment Recognition and Elimination Activity
Three months ended Six months ended
(in thousands)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Intersegment recognition and elimination activity:
Elimination of net sales recognized by Brand Portfolio segment$(26,710)$(19,398)$(71,562)$(55,532)
Cost of sales:
Elimination of cost of sales recognized by Brand Portfolio segment18,716 13,785 46,719 39,599 
Recognition of intersegment gross profit for inventory previously purchased that was subsequently sold to external customers during the current period10,651 10,566 19,645 21,141 
$2,657 $4,953 $(5,198)$5,208 



Operating Profit
Three months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%Basis Points
Segment operating profit (loss):
Retail$62,027 9.2 %$68,709 10.0 %$(6,682)(9.7)%(80)
Brand Portfolio979 1.1 %(4,046)(5.5)%5,025 NMNM
Total segment operating profit63,006 8.3 %64,663 8.5 %(1,657)(2.6)%(20)
Corporate/eliminations(8,283)(38,520)30,237 (78.5)%
Consolidated operating profit$54,723 7.5 %$26,143 3.5 %$28,580 109.3 %400 

Six months ended
(amounts in thousands)August 1, 2026August 2, 2025Change
Amount% of Segment Net SalesAmount% of Segment Net SalesAmount%Basis Points
Segment operating profit (loss):
Retail$113,305 8.7 %$108,682 8.3 %$4,623 4.3 %40 
Brand Portfolio16,402 8.2 %(2,100)(1.2)%18,502 NMNM
Total segment operating profit129,707 8.7 %106,582 7.2 %23,125 21.7 %150 
Corporate/eliminations(56,114)(88,346)32,232 (36.5)%
Consolidated operating profit$73,593 5.2 %$18,236 1.3 %$55,357 303.6 %390 
NM - Not meaningful



DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)

Three months ended Six months ended
August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Net sales$730,631 $739,762 $1,426,981 $1,426,671 
Cost of sales(365,276)(417,269)(746,308)(809,697)
Gross profit365,355 322,493 680,673 616,974 
Operating expenses(313,412)(297,462)(612,621)(599,324)
Income from equity investment2,780 2,578 5,541 5,005 
Impairment charges— (1,466)— (4,419)
Operating profit54,723 26,143 73,593 18,236 
Interest expense on debt, net of interest income(9,288)(11,783)(19,413)(23,754)
Interest expense on tariff sale financing transaction(16,097)— (16,097)— 
Non-operating income (expenses), net1,244 (78)1,239 (70)
Income (loss) before income taxes and loss from equity investment30,582 14,282 39,322 (5,588)
Income tax provision(10,031)(3,408)(14,836)(1,219)
Loss from equity investment(134)— (615)— 
Net income (loss)20,417 10,874 23,871 (6,807)
Net income attributable to redeemable noncontrolling interest(2,860)(339)(5,155)(474)
Net income (loss) attributable to Designer Brands Inc.$17,557 $10,535 $18,716 $(7,281)
Diluted earnings (loss) per share attributable to Designer Brands Inc.$0.31 $0.21 $0.34 $(0.15)
Weighted average diluted shares 55,974 49,734 55,757 48,678 



DESIGNER BRANDS INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

August 1, 2026January 31, 2026August 2, 2025
ASSETS
Current assets:
Cash and cash equivalents$51,591 $50,871 $44,937 
Receivables, net80,397 61,716 57,607 
Inventories594,688 563,547 610,876 
Prepaid expenses and other current assets36,252 34,286 40,437 
Total current assets762,928 710,420 753,857 
Property and equipment, net208,965 213,291 227,141 
Operating lease assets694,367 675,648 716,685 
Goodwill130,601 130,837 130,716 
Intangible assets, net79,614 81,242 81,881 
Deferred tax assets30,018 35,882 45,067 
Equity investments55,153 56,260 59,446 
Other assets46,496 46,325 48,870 
Total assets$2,008,142 $1,949,905 $2,063,663 
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable$256,081 $236,195 $239,200 
Accrued expenses192,213 178,430 177,491 
Current maturities of long-term debt6,750 6,750 6,750 
Current operating lease liabilities172,454 175,515 157,212 
Total current liabilities627,498 596,890 580,653 
Long-term debt416,309 428,206 509,593 
Non-current operating lease liabilities613,503 596,587 646,431 
Other non-current liabilities43,482 46,606 48,201 
Total liabilities1,700,792 1,668,289 1,784,878 
Redeemable noncontrolling interest6,232 1,616 1,738 
Total shareholders' equity301,118 280,000 277,047 
Total liabilities, redeemable noncontrolling interest, and shareholders' equity$2,008,142 $1,949,905 $2,063,663 



DESIGNER BRANDS INC.
NON-GAAP RECONCILIATIONS
(unaudited)

Reconciliation of Gross Profit and Gross Margin to Adjusted Gross Profit and Adjusted Gross Margin
Three months ended Six months ended
(amounts in thousands)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Gross profit$365,355 $322,493 $680,673 $616,974 
Gross margin50.0 %43.6 %47.7 %43.2 %
Non-GAAP adjustments-
Tariff recoveries recorded to cost of sales used to pay the Investor for interest expense(15,336)— (15,336)— 
Adjusted gross profit$350,019 $322,493 $665,337 $616,974 
Adjusted gross margin47.9 %43.6 %46.6 %43.2 %


Reconciliation of Operating Expenses to Adjusted Operating Expenses
Three months ended Six months ended
(in thousands)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Operating expenses$(313,412)$(297,462)$(612,621)$(599,324)
Operating expenses as a % of net sales42.9 %40.2 %42.9 %42.0 %
Non-GAAP adjustments-
Restructuring and integration costs— 2,212 508 6,087 
Adjusted operating expenses$(313,412)$(295,250)$(612,113)$(593,237)
Adjusted operating expenses as a % of net sales42.9 %39.9 %42.9 %41.6 %


Reconciliation of Operating Profit to Adjusted Operating Profit
Three months ended Six months ended
(in thousands)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Operating profit$54,723 $26,143 $73,593 $18,236 
Operating profit as a % of net sales7.5 %3.5 %5.2 %1.3 %
Non-GAAP adjustments:
Tariff recoveries recorded to cost of sales used to pay the Investor for interest expense(15,336)— (15,336)— 
Restructuring and integration costs— 2,212 508 6,087 
Impairment charges— 1,466 — 4,419 
Adjusted operating profit$39,387 $29,821 $58,765 $28,742 
Adjusted operating profit as a % of net sales5.4 %4.0 %4.1 %2.0 %




Reconciliation of Net Income (Loss) Attributable to Designer Brands Inc. and Diluted Earnings (Loss) Per Share Attributable to Designer Brands Inc. to Adjusted Net Income and Adjusted Diluted Earnings Per Share
Three months ended Six months ended
(in thousands, except per share amounts)August 1, 2026August 2, 2025August 1, 2026August 2, 2025
Net income (loss) attributable to Designer Brands Inc.$17,557 $10,535 $18,716 $(7,281)
Diluted earnings (loss) per share attributable to Designer Brands Inc.$0.31 $0.21 $0.34 $(0.15)
Non-GAAP adjustments:
Tariff recoveries recorded to cost of sales used to pay the Investor for interest expense(15,336)— (15,336)— 
Restructuring and integration costs— 2,212 508 6,087 
Interest on tariff recoveries recorded to non-operating income and used to pay the Investor for interest expense(761)— (761)— 
Impairment charges
— 1,466 — 4,419 
Interest expense on tariff sale financing transaction and under-reported import duties16,097 116 16,256 219 
Foreign currency transaction losses6 78 11 70 
Net income attributable to redeemable noncontrolling interest2,860 339 5,155 474 
Tax effect of adjustments and changes in valuation allowance(1,195)1,679 (1,515)(513)
Adjusted net income$19,228 $16,425 $23,034 $3,475 
Adjusted diluted earnings per share$0.34 $0.33 $0.41 $0.07 


Non-GAAP Measures
Non-GAAP financial measures used by the Company includes adjusted gross profit and adjusted gross margin, adjusted operating expenses, adjusted operating profit, adjusted net income, and adjusted diluted earnings per share as shown in the table above. During the second quarter of 2026, we remitted interest payments recognized as interest expense to an Investor that previously purchased certain refund claims that we received. Tariff recoveries recorded to cost of sales and interest on tariff recoveries recorded to non-operating income used to pay the Investor for interest expense related to the tariff sale financing transaction with the Investor were adjusted from our GAAP results as shown in the table above. The non-GAAP measures presented in the table above adjust for the effects of: (1) Tariff recoveries recorded to cost of sales used to pay the Investor for interest expense; (2) restructuring and integration costs, including severance charges; (3) interest on tariff recoveries recorded to non-operating income and used to pay the Investor for interest expense; (4) impairment charges; (5) interest expense on the tariff sale financing transaction with the Investor and under-reported import duties; (6) foreign currency transaction losses; (7) net income attributable to redeemable noncontrolling interest; and (8) the net tax impact of such items and changes in


the valuation allowance on deferred tax assets. 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.

Comparable Sales Performance Metric
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 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 net sales from 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