Designer Brands Q2 revenues increase by 8.2 percent
30 Aug 2019
Designer Brands Inc. for the three months ended August 3, 2019, reported total revenue increase of 8.2 percent, including 102.9 million dollars in revenue from the Brand Portfolio segment, which includes 17.7 million dollars in intersegment revenue that is eliminated in consolidation. Comparable sales decreased 0.6 percent compared to a 9.7 percent increase in the second quarter of fiscal 2018. Total revenue for the first half increased by 15.3 percent, including 207.5 million dollars from the Brand Portfolio segment, which includes 28.2 million dollars in intersegment revenue that is eliminated in consolidation. Comparable sales increased 1.1 percent compared to last year’s 5.8 percent increase.
Commenting on the trading update, Roger Rawlins, the company’s Chief Executive Officer, said in a statement: “Each segment delivered what was needed this quarter, but our newest businesses really stood out, exceeding our expectations and moving us closer to the vision laid out at our Investor Day. In Canada, the transfer of successful practices at DSW in the U.S. to our Canadian banners fuelled continued positive momentum in this business. Similarly, Camuto Group is delivering exactly what we expected giving us differentiation and bringing added excitement to our retail segments.”
The company said, reported gross profit, as a percent of sales, decreased by 210 bps, while reported net income was 27.4 million dollars or 37 cents per diluted share, including pre-tax charges totalling 9.1 million dollars or 11 cents per diluted share, primarily from integration and restructuring expenses. Adjusted net income was 35.8 million dollars or 48 cents per diluted share.
Reported gross profit for the first half, as a percent of sales, decreased by 90 bps, while reported net income was 58.6 million dollars or 77 cents per diluted share and adjusted net income was 69.4 million dollars or 91 cents per diluted share.
The company’s board of directors declared a quarterly cash dividend of 25 cents per share to be paid on October 4, 2019 to shareholders of record at the close of business on September 20, 2019.
Picture:Designer Brands website