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.”