Companies

Designer Brands: net sales grow by 66.9%

Sep 1, 2021 United States

The North America-based designer, producer and retailer of footwear and accessories, announced its financial results for the three months ended on the 31st of July 2021

"Our tremendous second quarter results reflect successful execution on our short-term priorities coupled with our strategy to gain market share in athleisure and kids. Our sales results were driven by increased store traffic as we substantially grew our loyal customer base and welcomed core DSW customers back into our stores. As we look forward to our strategic growth, we have organized our efforts around three pillars: customer, brand and speed. All three of these pillars interact with one another and simultaneously strengthen each other. We are offering customers the experiences they crave, the speed they demand, and the brands that can rise to those challenges. Given the positive momentum and strength of our strategy, we expect to achieve an adjusted operating income in the second half of fiscal 2021 that will be in-line or slightly better than fiscal 2019 levels", commented Roger Rawlins, Chief Executive Officer.

Second Quarter Results

Net sales increased b 66.9% to 817.3 million US dollars in the second quarter of fiscal 2021 compared to the same period last year. Comparable sales increased by 84.9% for the second quarter of fiscal 2021. Gross profit increased to 284.7 million US dollars in the second quarter of fiscal 2021 versus 37.0 million US dollars last year, and gross margin as a percentage of net sales was 34.8% as compared to 7.6% for the same period last year and 30.5% for the second quarter of fiscal 2019. Reported net income in the second quarter of fiscal 2021 was 42.9 million US dollars, or 0.55 US dollars per diluted share, including net charges of 0.01 US dollars per diluted share from adjusted items, primarily related to target acquisition costs, restructuring charges, impairment charges, and the change in the valuation allowance on deferred tax assets. Adjusted net income in the second quarter of fiscal 2021 was 43.4 million US dollars, or 0.56 US dollars per diluted share.

Store Openings and Closings

During the second quarter of fiscal 2021, Designer Brands did not open any new stores; one store closed in the US and two in Canada, resulting in a total network of 515 US stores and 143 Canadian stores.

United States Accessories Companies Designer Brands Footwear Quarter Results Results