DESIGNER BRANDS $DBI Q2’26 EARNINGS HIGHLIGHTS 🔹 Revenue: $730.6M (Est. $745M) 🔴; -1.2% YoY 🔹 Adj. EPS: $0.34 (Est. $0.26) 🟢 🔹 Adjusted Gross Margin: 47.9%; +430 bps YoY 🔹 Brand Portfolio: $86.3M; +17.9% YoY Raises FY26 Guide: 🔹 Adj. EPS: $0.47-$0.52 (Est. $0.39) 🟢 🔹 Revenue Growth: Flat to +1% Segment Net Revenue: 🔹 Retail: $671.1M; -2.2% YoY 🔹 Brand Portfolio: $86.3M; +17.9% YoY Other Q2 Metrics: 🔹 Comparable Sales: -2.4% 🔹 Gross Margin: 50.0%; incl. tariff recoveries 🔹 Adjusted Net Income: $19.2M (Est. $15.5M) 🟢 🔹 Operating Profit: $54.7M; incl. tariff recoveries Key Updates: 🔸 Tariff recoveries: $35.5M of IEEPA tariff cost recoveries recorded in gross profit this quarter, driving the GAAP gross margin and operating profit; excluded from the adjusted results Comments: 🔸 “significant improvement in profitability year-over-year, highlighted by meaningful gross margin expansion as well as impressive sales growth in our Brand Portfolio segment” 🔸 “improved retail trends and a positive start to the third quarter, giving us confidence in raising our full year guidance.”

Designers use AI more for engineering than for design. Sales uses AI more for marketing than for sales. HR uses AI more for finance than for hr. If you think your job isn’t changing in the next three years because of AI, you are out of your mind.