DBI - Designer Brands jumps 15% after topping beaten-down expectations

Designer Brands (DBI) reports total sales fell 30.1% in Q3 and comparable sales were off 30.4% vs. -25.4% consensus. Gross profit as a percentage of sales plunged to 25.4% from 29.3% a year ago to top the consensus mark of 22.2%. The decrease in gross profit was primarily driven by the significant reduction in customer traffic with the continuing impact of COVID-19 and a result of continued elevated markdown activity in addition to the increase in shipping expense and deleverage on occupancy, fixed distribution costs, and royalty expense related to the decline in sales. CEO update: "We have been shifting our assortment to include more athletic and kids product, as well as items from the Top 10 brands in footwear, and see further opportunity to meaningfully grow these categories. Our investment in these areas has resulted in athletic penetration in our U.S. retail business increasing to 26% at the end

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Designer Brands jumps 15% after topping beaten-down expectations