Companies

Designer Brands returns to comparable sales growth in the fourth quarter

Mar 21, 2025 United States

The US-based company highlighted a return to comparable sales growth in the fourth quarter of fiscal 2024 as a sign of the success of its strategic initiatives. Despite short-term pressures, the company is optimistic about 2025

“Positive comparable sales in the fourth quarter reflect a return to growth for the first time in nine quarters, highlighting the success of our strategic initiatives throughout the year”, said Doug Howe, Chief Executive Officer. “This year’s achievements are a direct result of our decisive actions and commitment to refresh and strengthen our leadership, revitalize and modernize our assortment, refine our marketing strategies, right size our brand portfolio, and elevate our customers’ omnichannel experience”.

Fourth Quarter Results

In the three months that ended on the 1^st of February, the company’s net sales totalled 713.6 million US dollars, a decrease of 5.4%, on a comparable basis to the same period of the previous year. However, Designer Brands reported a total comparable sales increase of 0.5% in the period.

The US retail segment contributed 587.5 million US dollars to the company’s total net sales, down by 6.9% year-on-year, the Canada retail segment contributed 69.2 million US dollars, up by 7.5% year-on-year, and the brand portfolio segment contributed 87.2 million US dollars, up by 12.3% year-on-year.

In the fourth quarter of 2024, the company’s gross profit decreased to 282.6 million US dollars from 292.6 million US dollars in the same period of the prior year, with the gross margin increasing to 39.6% from 38.8%.

Designer Brands reported a fourth quarter net loss of 38.2 million US dollars, or a loss per diluted share of 0.80 US dollars, as compared to a net loss of 29.6 million US dollars, or a loss per diluted share of 0.52 US dollars, in the fourth quarter of fiscal 2023.

The fourth quarter adjusted net loss was 21.3 million US dollars, or a loss of 0.44 US dollars per diluted share, as compared to 25.3 million US dollars, or a loss of 0.44 US dollars per diluted share, in the fourth quarter of fiscal 2023.

Full Year Results

In the full year 2024, the company’s net sales totalled 3.0 billion euros, a decrease of 2.1% on a comparable basis to the previous year. Total comparable sales decreased by 1.7% in the twelve months.

Designer Brands reported a full year net loss of 10.5 million US dollars, or a loss per diluted share of 0.20 US dollars, as compared to a net income of 29.1 million US dollars, or earnings per diluted share of 0.46 US dollars, in 2023.

Adjusted net income was 15.0 million, or adjusted diluted earnings per share of 0.27 US dollars, as compared to 43.1 million US dollars, or earnings per share of 0.68 US dollars, in 2023.

Fiscal 2025 Outlook

“Looking ahead to 2025, we are confident that our ongoing business transformation will drive continued stability and growth, with expectations to significantly increase EPS compared to our 2024 adjusted results”, forecasted Howe.

He concluded: “Although we do see pressure on the consumer in the short term as a result of ongoing inflation, rising prices and less discretionary income, we believe these initiatives will drive improved financial performance through 2025 and continue to position us well for long-term, sustainable growth”.

For the fiscal year 2025, Designer Brands expects net sales growth in the low single digits and diluted earnings per share of 0.30 to 0.50 US dollars.

Image Credits: nelsonworldwide.com

United States Companies Designer Brands Footwear Quarter Results Results