Designer Brands (NYSE:DBI) reported a year-over flat sales of $713.6 million, missing the analyst consensus estimate of $718.9 million and total comparable sales decreased by 1.9% Y/Y in the quarter. The company's gross profit rose to $302.7 million from $282.6m a year ago, with gross margin expanding to 42.4%, up from 39.6% last year. Despite early-quarter weather-related challenges, the company sees sales to be flat to slightly up in the low single digits for 2026. The ongoing conflict in the Middle East may fuel inflation and affect consumer confidence.