DBI - Why Designer Brands Stock Surged Today
2023-03-16 19:06:48 ET
Shares of Designer Brands (NYSE: DBI) leaped 12% on Thursday after the footwear maker reported a surprise profit in its fiscal 2022 fourth quarter ended Jan. 28.
Designer Brands' net sales fell 7.5% year over year to $760.5 million, driven by a 5.5% decline in comparable-store sales. The company chose to sacrifice revenue rather than match the heavy discounts offered by its competitors.
"In the fourth quarter, the footwear industry was highly promotional, specifically in athletic, to combat over-inventory positions and a constrained consumer," Designer Brands president Doug Howe said during a conference call with analysts.
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Why Designer Brands Stock Surged Today