Designer Brands Inc. reported second-quarter per-share earnings of $0.34, beating estimates by 36%, while revenue fell 1.2% year-over-year to $730.63 million and missed expectations. Profitability improved as reported gross margin rose to 50.0% from 43.6% and adjusted gross margin increased to 47.9% from 43.6%. Net income attributable to Designer Brands was $17.6 million, or diluted EPS of $0.31, and adjusted net income was $19.2 million, or adjusted diluted EPS of $0.34. Brand Portfolio segment sales rose 17.9% to $86.3 million, while total comparable sales decreased 2.4%. Designer Brands reduced debt to $423.1 million, down approximately $93.0 million from a year earlier, and ended the quarter with $51.6 million in cash and $146.2 million available under its senior secured asset-based revolving credit facility. Following a strong start to the third quarter, the company raised its full-year 2026 net-sales outlook from down 1% to up 1% to flat to up 1%, and increased its adjusted diluted EPS guidance from $0.28-$0.38 to $0.47-$0.52. Chief Executive Officer Doug Howe said the company remained focused on long-term shareholder value and progress under its strategic plan.