Designer Brands 2023 sales hurt by softerning footwear market

Designer Brands announced on Thursday sales for the fourth quarter decreased 0.8% to $754.3 million, on the back of a comparable sales decrease of 7.3%, hit by a “softening footwear market” in 2023.

The Columbus, Ohio-based company said net sales for the fiscal year 2023 ending February 3 decreased 7.3% to $3.1 billion, while total comparable sales decreased by 9% for the 12 months.

​”We ended the year strong, with a solid finish to the fourth quarter above the top end of our revised EPS guidance range, led by strength in our brand portfolio segment as a result of acquiring Keds, Topo, and launching Le Tigre,” said Doug Howe, chief executive officer. “Despite the results, 2023 was a difficult year as we were impacted by a softening footwear market, highly promotional retail environment, and the impact of unseasonably warm weather on our seasonal footwear business.”

Howe continued, “Looking ahead to 2024, we have an important transition year ahead as we plan to return to growth across our business. We are laser focused on assembling a fresher and more trend-right assortment for our customers, providing an increasingly convenient shopping experience across our channels and executing on operational improvements in our brands business bolstered by our new hires. We expect these initiatives will underpin improved financial performance throughout the year, and combined with disciplined cost savings, will lead to continued strong cash flow generation.”

During the fourth quarter, the footwear and apparel firm opened one store and closed one store in the U.S. and closed one store in Canada, resulting in a total of 499 stores in the U.S. and 143 stores in Canada as of February 3.

In January, the company announced the appointment of Andrea O’Donnell to the role of brands president and executive vice president of Designer Brands, effective January 29.  

The U.S. footwear and accessories company boasts a varied portfolio of brands including Crown Vintage, Hush Puppies, Jessica Simpson, Keds, Kelly & Katie, Le Tigre, Lucky Brand, Mix No. 6, Topo, Vince Camuto, and others. It also operates the DSW Designer Shoe Warehouse and The Shoe Company stores in North America.