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Designer Brands (NYSE:DBI) slumped in early trading after reporting a smaller profit than anticipated for Q4.
The Columbus, Ohio-based company reported that net sales increased 0.6% to $746.6 million during the quarter. Total comparable sales decreased by 2.5% to miss the consensus expectation for a small gain. Comparable sales were down 2.3% in the U.S. retail segment and down 4.9% in the Canada Retail Segment. The Brand Portfolio segment saw a 1.7% decline in comparable sales.
Gross profit increased to $245.1 million from $237.7 million a year ago. DBI’s gross margin rate of 32.8% was up from 32.0% a year ago.
CEO outlook: “Moving forward, we will continue to prioritize our strategic commitments to revitalize our assortment, elevate marketing, and enhance the in-store and digital experience, while exploring areas to further rationalize our cost base appropriately, streamline our operations, and drive greater efficiencies. We believe that we are on solid footing as we enter the summer months and are pleased to reaffirm our guidance for 2024.”
Looking ahead, Designer Brands (DBI) sees full-year EPS of $0.70 to $0.80 vs. $0.76 consensus.
Designed Brands owns many well-known brands, including Crown Vintage, Hush Puppies, Jessica Simpson, Keds, Kelly & Katie, Le TIGRE, Lucky Brand, Mix No. 6, Topo, and Vince Camuto.
Shares of Designer Brands moved 4.78% lower in premarket trading to $10.53 vs. the 52-week range of $6.30 to $13.44.
