Net sales at Designer Brands Inc. increased 30.7 percent to 853.5 million dollars in the third quarter of fiscal 2021 compared to the same period last year. The company said, comparable sales increased 40.8 percent during the quarter.
Commenting on the third quarter results, Roger Rawlins, the company’s chief executive officer, stated: “Designer Brands’ outstanding third quarter results demonstrate the efficacy of our strategic plans that were set in motion prior to the onset of the pandemic and accelerated over the last 18 months. We are energized by the strength of our strategy and our record-setting results, despite unseasonably warm weather and industry-wide supply chain challenges.”
The company’s gross profit increased to 313.6 million dollars versus 165.7 million dollars last year, and gross margin as a percentage of net sales was 36.7 percent as compared to 25.4 percent for the same period last year and 29.3 percent for the third quarter of fiscal 2019.
The company added that reported net income was 80.2 million dollars or 1.04 dollars diluted earnings per share, while adjusted net income was 66.6 million dollars or 86 cents diluted EPS, compared to an adjusted net loss of 18.6 million dollars or 26 cents loss per diluted share, for the third quarter of fiscal 2020.
During the third quarter, Designer Brands opened four new stores in the U.S. and one new store in Canada and closed four stores in the U.S., resulting in a total of 515 U.S. stores and 144 Canadian stores as of October 30, 2021.
The company further said that for the fourth quarter, consolidated net sales are expected to be flat to up low-single digits and diluted EPS in the range of 10 cents to 15 cents.