Designer Brands (NYSE:DBI) shares nosedived over 20% intra-day today after the company delivered a weak first-quarter performance and withdrew its full-year forecast due to growing economic and geopolitical headwinds.
The company reported an adjusted loss of $0.26 per share for the quarter, sharply missing Wall Street’s expected loss of $0.08. Revenue came in at $686.9 million, down 8% year-over-year and falling well short of the $736 million analysts had projected. Comparable sales dropped 7.8%, signaling weakening demand.
In a notable shift, the company scrapped its prior full-year 2025 guidance, citing significant macroeconomic uncertainty, particularly around global trade policies. In response, Designer Brands announced plans to implement $20 million to $30 million in cost reductions throughout the fiscal year.