Designer Brands has reported a sequential improvement to its sales in the second quarter, but the company remains cautious about macroeconomic uncertainties brought about by higher tariffs.

For the quarter ended August 2, net sales fell 4.2 per cent year-on-year to $739.8 million, compared to the 8 per cent drop in the first quarter.

Comparable sales decreased 5 per cent, a slower pace compared to the 7.8 per cent decline in the prior quarter.

CEO Doug Howe said the sequential improvement reflected the impact of the company’s targeted operational initiatives. A strong start to the back-to-school season within the US retail segment, as well as improvements in traffic and conversion also contributed to the results.

By segment, US retail sales slid 4.8 per cent, while Canada retail sales rose 0.4 per cent. Sales of the brand portfolio, namely Topo Athletic, Keds, Vince Camuto, Kelly & Katie, Jessica Simpson, Crown Vintage and others, dropped 23.8 per cent.

On the bottom line, attributable net income decreased from $13.8 million in the year-ago period to $10.8 million.

The company did not provide finance guidance for the full year, citing macroeconomic uncertainty stemming primarily from global trade policies.

“While consumer sentiment has ticked up slightly, given the ongoing macroeconomic volatility with recent extended tariff increases and caution in discretionary spending, there is still a notable amount of uncertainty. 

“That said, we remain committed to disciplined execution in those areas within our control as we navigate the near-term environment while continuing to build a stronger, more sustainable business for the future,” Howe said.