Designer Brands Inc. closes the fourth quarter of 2025 with sales essentially stable at $713.6 million, in a context that continues to see retail under pressure. Once again, the brand portfolio makes the difference, with Topo Athletic as the absolute protagonist of growth.
The Brand Portfolio segment records a +5.3% in the quarter, supported by an exploit by Topo (+42%) and the good performance of the Jessica Simpson brand. An encouraging sign for the group, which continues to invest in the development of proprietary and licensed brands as a strategic lever for growth.
The situation of the retail channel is more complex, representing over 88% of the business: sales are slightly down (-0.1%) and comparable sales decrease by 1.7%, confirming a weak trend already seen in previous quarters.
Nevertheless, the group manages to significantly improve profitability thanks to more efficient management of prices, promotions, and logistical costs. The gross margin rises to 42.4% (+280 basis points), while the operating loss is significantly reduced.
On an annual basis, 2025 closes with a decrease in revenues of 3-4%, but with an adjusted operating profit of $65 million, above the group’s expectations. The weakness of retail weighs heavily, while the Brand Portfolio shows signs of gradual recovery in the second half of the year.
Among the brands, Topo Athletic confirms itself as the real driver: +46% on an annual basis and a business more than doubled compared to two years ago, thanks to its positioning in technical running and its growing presence in the specialty channel.
Strategically, DBI is working on greater integration of retail activities between the United States and Canada and on cost rationalization, with the aim of improving efficiency and collaboration between the banners. At the same time, the group aims to strengthen the product offering — from footwear to the “adjacent” segment such as beauty and accessories — and to expand the brand portfolio, also through partnerships with new emerging brands.
For 2026, the focus remains on growth and margins, with Topo still at the center of development plans, including new collections and expanding distribution, especially in the specialized running channel.
