2023-06-08 07:05:50 ET
Designer Brands ( NYSE: DBI ) reported a 10.7% decline in sales during Q1 to $742.1M. Comparable sales decreased by 10.4%.
U.S. retail segement sales fell 12.8% to $612.9M and Canadian retail sales were down 4.2% to $54.0M. Brand portfolio sales declined 4.6% to $93.0M during the quarter.
Gross margin declined 120 basis points from a year ago to 33.2% of sales. Operating profit was $19.6M vs. $53.2M a year ago.
Adjusted EPS came in at $0.21 vs. $0.48 a year ago and short of the consensus mark of $0.23.
Designer Brands' ( DBI ) inventory position at the end of the quarter was $637.4M vs. $605.7M at the end of Q4 and $672.5M a year ago.
CEO update: "We have made significant operational progress on our goal of doubling sales of our Owned Brands by 2026 over 2021 with our recent acquisitions of Keds, Le Tigre, and Topo Athletic helping to further expand and diversify our brand portfolio. We continue to lean further than ever before into our Owned Brands, harnessing key and exciting moments to showcase our brands with engaging events and customer experiences."
Looking ahead, Designer Brands ( DBI ) said consumers are showing caution so it is approaching the remainder of the year and the trajectory of the recovery in thhe business with heightened consideration. DBI said it is still confident in its ability to continue to optimize those factors over which it has control and provide compelling products from an ideal national brand assortment.
Shares of Designer Brands ( DBI ) rose 4.85% in premarket trading on Thursday to $7.56 after the company announced a $100M share repurchase plan to take the sting off the earnings miss.
More on Designer Brands:
- Designer Brands: Cautiously Facing Challenging Market
- Valuation metrics on Designer Brands
- Designer Brands compared to sector peers
- Seeking Alpha's Quant Rating for Designer Brands
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Designer Brands rallies after share buybacks take the sting off earnings miss