Companies

Another quarterly decline in net sales for Designer Brands

Dec 11, 2024 United States

The US-based footwear retailer has reported a 2.6% year-over-year decline in third quarter net sales, as unseasonably warm weather and continued macroeconomic uncertainty weighed on consumer spending

“The third quarter started strong, driven by back-to-school season and the success of our athletic and athleisure offerings, bolstering our confidence that we had reached a turning point in our business. However, we had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category. As a result, we saw our total company comparable sales decline 3.1% for the quarter”, commented Doug Howe, Chief Executive Officer.

Overall, in the third quarter of fiscal 2024, which ended on the 2^nd of November, the company’s net sales amounted to 777.2 million US dollars, a decrease of 1.2% on a comparable basis to the same period of last year.

US retail contributed 615.4 million US dollars to Designer Brands’ net sales, down by 2.6% year-over-year. However, sales in the segment were in line with the market, with key categories such as performance, casual and occasion footwear outperforming during the quarter, helping to partially offset the negative performance of footwear due to unseasonably warm weather.

On the other hand, the Canada retail segment contributed 83.5 million US dollars, up by 10.4% year-over-year, and the brand portfolio segment contributed 111.5 million US dollars, up by 18.5% year-over-year.

In the third quarter of the current fiscal year, Designer Brands reported a gross profit of 247.4 million US dollars and a gross margin of 31.8%, as compared to 256.4 million US dollars and 31.8% in the same period of fiscal 2023.

The company’s third quarter net income was 13.0 million US dollars, or diluted earnings per share of 0.24 US dollars, on a comparable basis to 10.1 million US dollars, or diluted earnings per share of 0.17 US dollars in the same quarter of the prior year. Designer Brands also reported an adjusted net income of 14.5 million US dollars or adjusted diluted earnings per share of 0.27 US dollars.

Full Year Outlook

The US-based company lowered its fiscal 2024 net sales growth guidance to low single digits from flat to low single digits, and full year adjusted diluted earnings per share to 0.10 to 0.30 US dollars from 0.50 to 0.60 US dollars.

Image Credits: fordarchitects.com

United States Companies Designer Brands Footwear Quarter Results Results