Designer Brands tests The Edit shop-in-shop at four DSW locations
Designer Brands is piloting The Edit, a store-within-a-store concept, in four DSW locations this fall, according to CEO Doug Howe. Each Edit shop will occupy between 1,000 and 1,500 square feet inside the existing DSW stores.
The Edit will showcase a curated selection of affordable luxury and elevated fashion brands in an open, experiential environment. Designer Brands will use the pilot to assess customer response and shape any future expansion of the concept. In the second quarter of 2026, the company reported consolidated net sales of $730.6 million, a 1.2% year‑over‑year decline, with retail sales down 2.2% and comparable store sales down 2.6%. Designer Brands also said it lowered its debt to $423.1 million for Q2 2026, $93 million less than a year earlier, and is relaunching its loyalty program this month, noting that nearly 90% of transactions come from its roughly 30 million VIP members. The company also noted that its Topo Athletic brand is on track to generate more than $100 million in sales by 2027, with growth expected in both existing and new distribution channels.
“Nearly 90% of our transactions come from our approximately 30 million VIP members, and we have significantly modernized the program, enhancing the value we provide to our VIPs while improving the effectiveness and efficiency of our CRM efforts,” Doug Howe, CEO of Designer Brands said.
As of August 1, Designer Brands operated 668 stores across three banners and reported that its brand portfolio, including Topo Athletic, Keds, Vince Camuto and Jessica Simpson, had grown nearly 18% year over year in the second quarter. The company raised its full‑year 2026 sales guidance to a range of flat to up 1% year over year, up from the prior outlook of down 1% to up 1%. In February, Designer Brands announced an unspecified number of layoffs aimed at strengthening its ability to execute, manage costs, and create long‑term value.
What we know
Designer Brands is testing a new store-within-a-store concept called The Edit at four DSW locations this fall, CEO Doug Howe said on a Thursday call with analysts.
Each “open, experiential environment” will occupy between 1,000 square feet and 1,500 square feet inside existing DSW stores, although Howe did not provide further information on specific locations.
Also on Thursday, Designer Brands reported a second quarter 2026 consolidated net sales decrease of 1.2% year over year to $730.6 million.
Retail sales fell 2.2% for the quarter, and comparable store retail sales were down 2.6%.
The company reduced its debt to $423.1 million for the second quarter of 2026, down $93 million compared to the second quarter of 2025.