DBI - Designer Brands soars on record margin expansion guides above consensus

Designer Brands Inc. (DBI +17.6%) shares surge after the company reported FQ3 earnings that were 53% higher than what analysts expected. Comparable sales grew 40.8% Y/Y, driven by growth in the athletic and athleisure, kid's, and men's sections. Gross margin expanded to 36.7% from 25.4% during the comparable period last year. In FQ3 2019, gross margin was 29.3%. The Company ended the quarter with inventories of $602.1M compared to $546.0M for the same period last year. Cash and cash equivalents totaled $83.1 million at the end of the quarter compared to $114.5 million at the end of FQ3 2020. FQ4 outlook: Designer Brands expects net sales to be flat to up low-single digits compared to FQ4 2019 vs consensus of a 3.5% revenue decline. EPS are projected in the range of $0.10 to $0.15 vs consensus of $0.02. SA contributor Agustya Matheth was one investor who predicted Designer Brands' Q3 beat, however he

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Designer Brands soars on record margin expansion, guides above consensus