Designer Brands reports mixed Q3 results (#1685282)

Designer Brands Inc., the Columbus, Ohio-based owner of the DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse retail chains, announced on Tuesday that net sales decreased 1.2% in the third quarter ended November 2.

The company, which also produces footwear and accessories through Camuto Group, achieved net sales of $777.2 million. Total comparable sales decreased by 3.1%.

Sales in Designer Brands’ U.S. retail segment dropped 2.6% compared to the same three month period last year, while its Canada retail segment increased by 10.4%. The company’s brand portfolio segment saw the largest increase, with sales rising by $17.4 million or 18.5%.

Reported net income at the company was $13 million, or diluted earnings per share of $0.24.

“The third quarter started strong, driven by back-to-school season and the success of our athletic and athleisure offerings, bolstering our confidence that we had reached a turning point in our business. However, we had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category,” explained Doug Howe, chief executive officer. 

Looking ahead, the company revised its guidance for the full year 2024, and now anticipates low-single digits and adjusted diluted EPS for Designer Brands of a range of $0.10 to $0.30, down from its previous target of a range of $0.50 to $0.60. 

“Although external challenges have persisted, I am encouraged by how effectively our business has stayed aligned with our strategic priorities and executing on the things within our control. As we make our way through the fourth quarter, we remain confident in our strategy and our ability to navigate headwinds as we implement a refreshed holiday marketing and merchandising approach. We continue to believe this focus will help us improve performance over the long-term,” added Howe.

During the third quarter of 2024, the company closed three stores in the United States and opened two stores in Canada, ending the quarter with a total of 496 stores in the U.S. and 179 stores in Canada.