Designer Brands Inc. Reports Third Quarter 2024 Financial Results
Columbus, Ohio, Dec. 10, 2024 – Designer Brands Inc. (NYSE: DBI), a leading global designer, producer, and retailer of footwear and accessories, has revealed its financial performance results for the third quarter ended November 2, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Net Sales | $777.2 million | $786.5 million | -1.2% |
| Total Comparable Sales | -3.1% | N/A | N/A |
| Gross Profit | $247.4 million | $256.4 million | -3.5% |
| Gross Profit Margin | 31.8% | 32.6% | -0.8pp |
| Reported Net Income Attributable to DBI | $13.0 million | N/A | N/A |
| Diluted Earnings Per Share (EPS) | $0.24 | N/A | N/A |
| Adjusted Net Income | $14.5 million | N/A | N/A |
| Adjusted Diluted EPS | $0.27 | N/A | N/A |
Interpretation: Despite facing macroeconomic challenges, Designer Brands Inc. demonstrated strategic resilience by slightly narrowing the decrease in net sales and gross profit compared to the previous year. The modest decline in gross profit margin highlights the company's ongoing efforts to control operational costs amidst a challenging retail environment.
Revenue Performance by Segment
| Segment | Performance |
|---|---|
| U.S. Retail Excluding Boots | Grew 8% YoY |
| Footwear (Performance, Leisure, Dress) | Key categories outpaced the market |
| Total Company Comparable Sales | Declined 3.1% YoY |
Interpretation: The U.S. Retail segment, excluding boots, showcased impressive growth, significantly outperforming the general footwear market. This is indicative of effective strategic investments in high-performing categories such as performance and leisure footwear.
Operational Highlights - Launched refreshed holiday marketing and merchandising approach for enhanced consumer engagement. - Expanded store footprint with two new openings in Canada; consolidated U.S. operations with three closures. - Total store count stands at 496 in the U.S. and 179 in Canada.
Comments from Management CEO Doug Howe emphasized the company's strategic alignment and resilience amid external adversities, focusing on the back-to-school season's strong start. Howe expressed confidence in the long-term strategy and highlighted the need for adaptability to weather challenges and macroeconomic pressures.
Shareholder Returns - The company repurchased 7.7 million Class A common shares at an aggregate cost of $50.6 million during the quarter. - Declared a dividend of $0.05 per share for both Class A and Class B common shares, payable on December 20, 2024.
2024 Financial Outlook Designer Brands Inc. has updated its financial guidance for the full year 2024 with an emphasis on excluding volatile potential charges or gains thus maintaining an adaptable financial framework for unpredictable economic conditions.
Overall, Designer Brands Inc.'s third-quarter results reveal a company navigating challenging market conditions with a strategic eye on sustaining growth through targeted investments and efficient operations.
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