"We saw robust growth in our Owned Brands in the quarter, both through our direct-to-consumer and wholesale channels, and believe we are on a great trajectory to achieve our goal of doubling our Owned Brand sales by 2026. Our strong first quarter 2022 results demonstrate the progress we are making towards our long-range plan that we outlined at our recent Investor Day. In addition, we are further building our relationships with our top National Brands, and our new prototype Warehouse Reimagined store, which opened in May, brings to bear a wealth of capabilities and opportunities that will help us to strengthen these relationships and provide a more seamless omnichannel experience for our customers", commented Roger Rawlins, Chief Executive Officer, stated.

First Quarter Results

In the first quarter of fiscal 2022, Designer Brands’ net sales increased overall by 18.1%, totalling 830.5 million US dollars, on a comparable basis to the same period of fiscal 2021. In this period, comparable sales grew by 15.3%.

By segment, on a comparable basis to the first quarter of 2021, US retail net sales were up by 13.2%, amounting to 702.7 million US dollars, Canada retail net sales rose by 38.7%, reaching 56.3 million US dollars, and brand portfolio segment net sales increased by 69.7%, adding up to 97.5 million US dollars.

Gross profit totalled 275.7 million US dollars in the first quarter of the current year, as compared to 216.1 million US dollars in the first quarter of the prior year. Gross margin as a percentage of net sales corresponded to 33.2% in the referred period, as compared to 30.7% in similar period of last year.

As of the 30^th of April, the company reported net income of 26.2 million US dollars, or diluted earnings per share of 0.34 US dollars. Adjusted net income was 36.7 million US dollars, or diluted earnings per share of 0.48 US dollars.

Full Year Outlook

For fiscal 2022, Designer Brands is expecting comparable sales up by a mid-single digit rate, as compared to the previous guidance of high-single digit rate growth. However, diluted earnings per share are expected between 1.90 US dollars to 2.00 US dollars, up from the previous estimation of 1.80 US dollars to 1.90 US dollars.