Designer Brands Q1 2026 EPS beats expectations with 240 bps margin expansion

Designer Brands reported Q1 net sales of $696.4M with adjusted diluted EPS of $0.07, exceeding expectations, and delivered significant gross margin expansion of 240 basis points through improved inventory management and pricing discipline. The company reaffirmed full-year 2026 EPS guidance of $0.28-$0.38 and expects to trend toward the high end despite macroeconomic uncertainty.