World Footwear

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Designer Brands announces third quarter results

Dec 2, 2022 United States
Designer Brands announces third quarter results
The North-American company posted net sales of 865.0 million USD in the third quarter of 2022, with sales of owned brands representing 26.5% of the total, as compared to 21.5% in the same period of last year
"We continued to make meaningful progress on our long-term-brand building strategy while also delivering solid comparable sales across every segment of our business. Sales of Owned Brands represented 26.5% of total net sales in the third quarter of 2022 compared to 21.5% for the same period last year. The strategic shifts we have made in our business over the past several years are driving a sustainably higher gross margin rate than in 2019 as we have a more targeted focus on customer acquisition, optimizing our assortment, and growing the brands we own and control", commented Roger Rawlins, Chief Executive Officer of Designer Brands.

Third Quarter Results

Designer Brands' net sales increased by 1.4% in the third quarter of the current fiscal year, on a comparable basis to the same period of last year, totalling 865.0 million US dollars. In this period, comparable sales grew by 3.0% year-over-year.

In the three months to the 29th of October, the US retail segment posted a net sales decline of 0.5%, reaching 706.4 million US dollars, as compared to the same period of fiscal 2021. In the same period, the Canada retail segment reported a net sales increase of 10.0%, which amounted to 82.3 million US dollars, and the Brand portfolio segment net sales rose by 3.4%, on a comparable basis to the third quarter of the prior year.

The company's gross profit declined to 285.8 million US dollars in the third quarter of 2022, against the 313.6 million US dollars registered in a similar period last year. Accordingly, the gross margin as a percentage of net sales was 33.0%, as compared to 36.7% in 2021.

In the third quarter of financial 2022, Designers Brands reported a net income of 45.2 million US dollars, or diluted earnings per share of 0.65 US dollars, and an adjusted net income of 46.1 million US dollars, or adjusted diluted earnings per share of 0.67 US dollars, on a comparable basis to the same period of last year.


Full Year Outlook

"While we are seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment. We are focused on meeting our customers' footwear needs while we balance inventory and expenses in order to continue growing market share in this volatile environment", added Roger Rawlins.

The company is still anticipating a comparable sales growth in the mid-single digits for fiscal 2022, but lowered its diluted earnings per share to a range between 1.75 US dollars to 1.80 US dollars, as compared to the previous guidance of 2.05 US dollars to 2.15 US dollars.


Image Credits: fashionjackson.com

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