Designer Brands lowers full year outlook

Designer Brands’ net sales decreased 2.6 percent to 771.9 million dollars in the second quarter, while comparable sales decreased by 1.4 percent.

Lowering its full year outlook, the company said it now expects net sales growth in the flat to low-single digits and adjusted diluted EPS in the range of 50 to 60 cents.

"We saw sustained pressure on challenged categories such as dress and seasonal in the second quarter, which we were able to partially mitigate through providing a greater selection of athletic and athleisure brands in our assortment," stated Doug Howe, the company’s chief executive officer.

Gross profit decreased to 252.9 million dollars gross margin to 32.8 percent. Reported net income attributable to Designer Brands Inc. was 13.8 million dollars or diluted earnings per share of 24 cents, while adjusted net income was 17.1 million dollars or adjusted diluted EPS of 29 cents.

During the second quarter, the company repurchased 2.7 million class A common shares at an aggregate cost of 18 million dollars.

Designer Brands closed one store in the United States and opened two stores in Canada, resulting in a total of 499 stores in the US and 177 stores in Canada as of August 3, 2024.