Net income rose 67% in the second quarter to $17,557,000 from $10,535,000, boosted by IEEPA tariff refunds, though sales slipped 1% to $730,631,000 from $739,762,000, with DSW retail sales down 2%. The refund totaled $35.5 million, but DBI incurred a $16.1 million interest expense for its tariff sale financing transaction with a third party. Consolidated gross margin was inflated by the refund, growing 640 basis points to 50.0%, while SG&A was 5% higher and deleveraged 270 b.p. to 42.9% of the lower top line. Inventory ended the period 3% lower at ... Log in to view full article.