Designer Brands Swings Back to Growth in Q1
Designer Brands Inc. (DBI) swung back to growth in the first quarter, delivering first quarter earnings and sales results that were in line with its expectations.
Net sales for the DSW parent company increased 0.6 percent to $746.6 million in the first quarter of fiscal year 2024. Comparable sales decreased by 2.5 percent in the period while adjusted net income was $4.8 million, with adjusted diluted EPS of 8 cents. The sales results beat analysts’ expectations that targeted sales of $741.63 million, though EPS fell short of the 12 cents expected.
In a statement, DBI chief executive officer Doug Howe said that the company is embracing a new strategy to become a “more efficient and synergistic organization.” He also cited data from Circana, which showed that DBI “outperformed the overall market dollar sales in the performance, leisure, and kids categories.”
On Monday, DBI announced that it tapped Sarah Crockett as chief marketing officer of DSW. The company said Crockett will help implement DBI’s “Step Ahead Plan,” a new strategic business initiative that the company is rolling out that focuses on putting consumers first while “being product obsessed and transformation-focused,” a release said. Crockett will report to DSW president Laura Denk, who joined the company last July.
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DBI on Tuesday reaffirmed its outlook for fiscal year 2024 and still expects to see net sales growth in the low-single digits. Diluted EPS is expected to be between 70 cents and 80 cents.
“Moving forward, we will continue to prioritize our strategic commitments to revitalize our assortment, elevate marketing, and enhance the in-store and digital experience, while exploring areas to further rationalize our cost base appropriately, streamline our operations, and drive greater efficiencies,” Howe said in a statement. “We believe that we are on solid footing as we enter the summer months and are pleased to reaffirm our guidance for 2024.”
