By Kiara Webb, Senior Correspondent
June 10, 2025 — Designer Brands, a major North American footwear and accessories retailer, shocked investors on Monday by withdrawing its 2025 financial forecast. The company cited concerns over shifting trade policies, which it believes could significantly disrupt business operations and impact profitability.
The decision caused a dramatic reaction in the stock market, with Designer Brands’ shares falling by 24.7%. This occurred despite the company exceeding quarterly profit expectations. Analysts had anticipated a more favorable outlook, but the warning about trade policy uncertainties overshadowed the positive earnings report.
Trade Policy Concerns Disrupt Forecasts
The main factor behind Designer Brands’ withdrawal of its forecast is the growing uncertainty surrounding trade policies, particularly in the context of rising tariffs, import-export regulations, and global supply chain disruptions. The company stated that these changes could have severe effects on its cost structure and long-term growth.
As trade tensions continue to fluctuate, many businesses, particularly those in the retail and manufacturing sectors, have been forced to reassess their operations. Designer Brands, heavily reliant on international supply chains, is particularly vulnerable to these unpredictable shifts. The company has expressed concern that additional tariffs or changes to trade agreements could result in higher import costs and reduced consumer demand, both of which could severely impact profitability.
Market Reactions: Designer Brands and J.M. Smucker
The market response to Designer Brands’ forecast withdrawal was swift and sharp. Alongside its poor stock performance, another major player, J.M. Smucker, also experienced market difficulties. Shares in the food company dropped by 10.5% despite the company surpassing earnings expectations for the quarter. The drop in J.M. Smucker’s stock was attributed to disappointing revenue numbers and a more cautious outlook for the coming months.
While J.M. Smucker’s quarterly profit exceeded expectations, the company was unable to maintain the momentum due to a decline in demand for certain product lines and concerns about future revenue generation. Similarly to Designer Brands, J.M. Smucker faces headwinds from global trade shifts, which have impacted their ability to predict future growth and consumer behavior.
Both companies’ experiences highlight the unpredictable nature of today’s global trade environment, where companies are forced to adjust expectations based on a host of external factors beyond their control. With consumer confidence also under pressure, many businesses are grappling to balance their costs while maintaining product availability.
Small Business Sentiment Shows Slight Improvement
On a more positive note, recent surveys indicate that sentiment among small businesses has improved slightly, with some owners expressing cautious optimism about future economic conditions. While concerns about trade and inflation remain, many small business owners are seeing a bit more stability than in previous months.
This shift in sentiment could be attributed to several factors, including new government policies aimed at easing the financial burdens of small businesses. However, experts caution that these improvements may be short-lived, and that broader economic uncertainties are still likely to have a significant impact on businesses of all sizes.
Retail and Consumer Goods Sectors Struggle with Trade Uncertainty
Designer Brands and J.M. Smucker’s struggles are emblematic of a larger issue affecting the U.S. retail and consumer goods industries. While both companies are experiencing challenges due to global trade policies, their difficulties are compounded by the persistent supply chain disruptions that have characterized the past few years.
For many businesses, rising input costs and the unpredictability of product availability are serious obstacles. While certain sectors, such as e-commerce, have benefited from pandemic-driven changes in consumer behavior, traditional brick-and-mortar retailers have had a harder time navigating these challenges. Companies like Designer Brands, which rely heavily on international manufacturing and supply chains, have found themselves particularly vulnerable to any shifts in trade agreements or regulations.
Looking Ahead: The Road to Recovery
The coming months will be critical for Designer Brands as it seeks to stabilize its operations amid trade policy changes. Analysts will be looking closely at the government’s upcoming decisions regarding tariffs and trade agreements, as these could provide a clearer picture of what the future holds for both large corporations and small businesses alike.
The challenges faced by Designer Brands underscore a wider issue in today’s global economy: the need for businesses to remain agile and prepared for unexpected disruptions. Companies must adapt to the shifting geopolitical landscape, balancing the demands of consumers with the realities of a volatile trade environment.
While Designer Brands has withdrawn its 2025 forecast, it has indicated that it will continue to monitor the situation and adjust its strategy as necessary. The company remains committed to managing its costs, improving its supply chains, and seeking out new opportunities to ensure long-term growth despite the uncertain backdrop.
