Designer Brands Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Designer Brands Inc. (DBI)

If you purchased or held Designer Brands securities and suffered losses, you may be eligible to join this securities investigation and seek compensation.

About Designer Brands

Designer Brands Inc. is a footwear and accessories retailer known for operating the DSW Designer Shoe Warehouse chain and other related brands. The company offers a wide selection of branded and private-label shoes, catering to a broad customer base through both physical stores and online channels.

Designer Brands has positioned itself as a leader in the footwear industry, emphasizing omnichannel experiences and a diverse product portfolio. The company’s operations include sourcing products globally, with a significant portion of its inventory coming from international suppliers.

Potential Concerns Under Investigation

Attorneys are reviewing whether Designer Brands and certain executives made false or misleading statements or failed to disclose material information between March 20 and June 9, 2025.

On March 20, 2025, the company issued its fourth-quarter and full-year 2024 financial results and provided guidance for fiscal 2025, stating an expectation of profitable growth. Lawyers are investigating whether those statements adequately reflected the company’s exposure to newly imposed tariffs on Chinese-made footwear. In early April 2025, the U.S. administration announced steep tariff increases (some as high as 145%) on a wide range of imported shoes.

Despite this, Designer Brands allegedly did not revise its guidance or issue specific warnings about potential margin pressure. While the company’s 10-K referenced generic tariff risks, attorneys are evaluating whether management knew or should have known that the new rates posed a material threat to its financial outlook.

On June 10, 2025, Designer Brands released first-quarter results that missed expectations and withdrew its 2025 guidance, citing an “unpredictable macro environment and deteriorating consumer sentiment.” Management also acknowledged it was “mitigating the impact of tariffs,” allegedly contradicting earlier statements suggesting limited exposure.

On this news, the company's stock dropped from $3.73 on June 9 to $3.05 on June 10, causing investors significant harm.

Lawyers are assessing whether Designer Brands adequately disclosed tariff risks, sourcing dependencies, and operational challenges before withdrawing guidance, and whether prior optimism misled investors about the company’s true financial condition.

Your Rights and Next Steps

Investors who purchased or held Designer Brands securities between March 20, 2025, and June 9, 2025, and suffered financial losses may have important legal rights. This is currently an investigation, not a filed lawsuit. If the investigation uncovers evidence of securities law violations, it could lead to a class action lawsuit seeking to recover damages for affected investors.

Lawyers are ready to help investors understand their options and guide them through the process. Participating in a securities investigation is an important step to protect investor rights and potentially recover losses. Investors are encouraged to act quickly, as securities investigations and any resulting lawsuits are subject to strict deadlines.

You May Be Entitled to Compensation

If you purchased Designer Brands securities and experienced losses between March 2025 and June 9, 2025, you may be eligible to join this investigation and seek compensation. Securities investigations are time-sensitive, so it is important to act promptly.

To learn more about your rights or to participate in the investigation, complete the form below.