DBI - Designer Brands stock drives to double-digit gain on surprise profit

2023-03-16 10:29:48 ET

Designer Brands stock drives to double-digit gain on surprise profit

Designer Brands ( NYSE: DBI ) stock surged over 11% on Thursday after notching positive earnings per share, surprising analysts that had anticipated a Q4 loss.

For the fourth quarter, the Ohio-based fashion company reported $0.07 in adjusted EPS, $0.09 above the analyst consensus, despite missing top-line estimates. Comparable sales fell 5.5% year over year, though margins expanded significantly.

“Our 2022 results clearly showcase the power and success of our brand building strategy with our Owned Brands growing over 32% to last year while delivering gross margins 400 basis points higher than those we saw in 2019,” CEO Roger Rawlins explained. “These results showcase the successful execution of our strategy.”

Management expects net sales growth to be down “mid-single digits” in 2023 while earnings per share is expected to range from $1.65 to $1.75. Analysts had forecast a 1.62% rise in revenue and EPS growth to $1.77.

Shares of Designer Brands ( DBI ) rose 1 1.11% after the print .

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