Designer Brands Reports Non-GAAP EPS of $0.38, Exceeding Estimates by $0.20; Revenue of $752.41M Falls Short by $10.99M
Q3 Financial Performance: Designer Brands reported a Q3 Non-GAAP EPS of $0.38, exceeding expectations by $0.20, while revenue of $752.41 million fell short by $10.99 million, reflecting a 3.2% year-over-year decline.
Sales Trends: Total comparable sales decreased by 2.4% during the quarter, indicating challenges in maintaining sales momentum.
Fiscal 2025 Outlook: For fiscal 2025, the company anticipates a net sales decline of 3% to 5%, with adjusted operating profit projected between $50 million and $55 million.
Tax Expense Forecast: The adjusted income tax expense for fiscal 2025 is expected to be between $8 million and $10 million, providing a clearer picture of the company's financial expectations.
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Searching for a Leading Momentum Stock? Here's Why Designer Brands (DBI) is an Excellent Option
Momentum Investing Overview: Momentum investing involves buying stocks that are trending upwards, with the expectation that they will continue to rise. The Zacks Momentum Style Score helps identify stocks with strong momentum characteristics.
Designer Brands Performance: Designer Brands (DBI) has a Momentum Style Score of A and a Zacks Rank of #1 (Strong Buy), with significant price increases of 69.88% over the past week and 117.31% over the past quarter, outperforming the S&P 500.
Earnings Estimates and Volume: DBI has seen positive earnings estimate revisions, with an increase in consensus estimates from -$0.27 to -$0.02. The stock's average 20-day trading volume is 1,698,108 shares, indicating strong market interest.
Investment Recommendations: Zacks Investment Research highlights DBI as a promising stock for near-term gains, suggesting it should be on investors' short lists for potential high returns, alongside other handpicked stocks expected to rise significantly.
Designer Brands Stock Soars on Tuesday Due to Short Squeeze and Earnings Report
Quarterly Performance: Designer Brands Inc. reported third-quarter adjusted earnings per share of 38 cents, significantly surpassing the analyst consensus estimate of 18 cents, despite a 3.2% year-over-year decline in quarterly sales to $752.411 million.
Financial Metrics: The company's gross profit increased to $339.6 million, with an improved gross margin of 45.1%. Consolidated operating profit rose 87% year over year to $42.663 million.
Store Operations and Debt: As of November 1, 2025, Designer Brands operates 672 stores across North America, while long-term debt decreased to $463.089 million from $529.551 million a year ago.
Market Outlook: The company anticipates a fiscal year 2025 adjusted operating profit of $50 million-$55 million, with projected net sales down 3%-5%, and has a high level of short interest at 57.07% of its public float.
