DBI - Designer Brand gains after earnings topper guidance raise

Designer Brands ( NYSE: DBI ) pushed higher in early trading after topping estimates with its Q2 earnings report.

Comparable sales increased 6.2% during the quarter as the company pointed to strength with both the direct-to-consumer and wholesale channels.

Gross margin as a percentage of net sales came in at 34.4% vs. 34.8% last year as DBI withstood many of the inflation pressures in the sector.

On the balance sheet, DBI ended the quarter with cash of $50.8M and $157.7M remaining available for borrowings under the senior secured asset-based revolving credit facility. Debt totaled $387.4M at the end of the quarter compared to $247.1M last year.

Looking ahead, the retailer sees FY23 comparable sales growth in the mid-single digits range and EPS of $2.05 to $2.15 vs. a prior view for $1.90 to $2.00 and $1.94 consensus. CEO Roger Rawlins said trends are looking good for the early part of Q3, including with the back-to-school season. "We look forward, we are well-positioned for the back half of the year and are confident in our ability to deliver our updated 2022 guidance," he stated.

Shares of DBI rose 1.76% premarket to $16.79 after the earnings topper.

For further details see: