Designer Brands Inc. Reports Second Quarter 2024 Financial Results
Designer Brands Inc. (NYSE: DBI) reported its Q2 2024 financial results, showing a 2.6% decrease in net sales to $771.9 million and a 1.4% decrease in comparable sales. The company's gross profit decreased to $252.9 million from $273.4 million last year, with gross margin falling to 32.8% from 34.5%. Despite challenges in dress and seasonal categories, DBI saw 8% growth in athleisure sales, outpacing the market by over 4 percentage points. The company reported net income of $13.8 million and adjusted net income of $17.1 million. DBI updated its 2024 guidance, now expecting flat to low-single digit net sales growth and adjusted diluted EPS of $0.50 - $0.60.
Designer Brands Inc. (NYSE: DBI) ha riportato i risultati finanziari del secondo trimestre 2024, mostrando una diminuzione del 2.6% delle vendite nette a 771.9 milioni di dollari e una riduzione dell'1.4% delle vendite comparabili. Il profitto lordo dell'azienda è sceso a 252.9 milioni di dollari rispetto ai 273.4 milioni di dollari dell'anno scorso, con un margine lordo che è passato dal 34.5% al 32.8%. Nonostante le difficoltà nelle categorie di abbigliamento e stagionali, DBI ha registrato una crescita dell'8% nelle vendite di abbigliamento sportivo, superando il mercato di oltre 4 punti percentuali. L'azienda ha segnalato un reddito netto di 13.8 milioni di dollari e un reddito netto rettificato di 17.1 milioni di dollari. DBI ha aggiornato le previsioni per il 2024, ora aspettandosi una crescita piatta o a singolo cifra delle vendite nette e un utile per azione diluito rettificato di $0.50 - $0.60.
Designer Brands Inc. (NYSE: DBI) reportó sus resultados financieros del segundo trimestre de 2024, mostrando una disminución del 2.6% en las ventas netas a $771.9 millones y una caída del 1.4% en las ventas comparables. La ganancia bruta de la empresa disminuyó a $252.9 millones desde $273.4 millones el año pasado, con un margen bruto que cayó del 34.5% al 32.8%. A pesar de los desafíos en las categorías de vestidos y estacionales, DBI vio un crecimiento del 8% en las ventas de ropa deportiva, superando el mercado por más de 4 puntos porcentuales. La empresa reportó un ingreso neto de $13.8 millones y un ingreso neto ajustado de $17.1 millones. DBI actualizó su guía para 2024, ahora esperando un crecimiento plano o de un solo dígito en las ventas netas y un EPS diluido ajustado de $0.50 - $0.60.
디자이너 브랜드 주식회사 (NYSE: DBI)는 2024년 2분기 재무 결과를 보고하며 순매출이 2.6% 감소하여 7억 7천 1백 90만 달러에 이르고 Comparable sales가 1.4% 감소했다고 발표했습니다. 회사의 총 이익은 작년 2억 7천 3백 40만 달러에서 2억 5천 2백 90만 달러로 감소했습니다, 총 이익률은 34.5%에서 32.8%로 하락했습니다. 드레스 및 계절 카테고리의 어려움에도 불구하고, DBI는 피트니스 의류 판매에서 8% 성장을 보이며 시장을 4%포인트 이상 초과했습니다. 회사는 순이익 1천 3백 80만 달러와 조정된 순이익 1천 7백 10만 달러를 보고했습니다. DBI는 2024년 가이드를 업데이트하며 순매출의 정체 또는 저조한 단일 숫자 성장을 예상하고 조정된 희석 주당순이익을 $0.50 - $0.60으로 조정했습니다.
Designer Brands Inc. (NYSE: DBI) a rapporté ses résultats financiers pour le deuxième trimestre 2024, montrant une baisse de 2,6 % des ventes nettes à 771,9 millions de dollars et une reduction de 1,4 % des ventes comparables. Le bénéfice brut de l'entreprise a diminué à 252,9 millions de dollars contre 273,4 millions de dollars l'année dernière, avec une marge brute passant de 34,5 % à 32,8 %. Malgré les défis rencontrés dans les catégories de vêtements et saisonnières, DBI a connu une croissance de 8 % des ventes d'athleisure, dépassant le marché de plus de 4 points de pourcentage. L'entreprise a enregistré un revenu net de 13,8 millions de dollars et un revenu net ajusté de 17,1 millions de dollars. DBI a mis à jour ses prévisions pour 2024, s'attendant maintenant à une croissance plate ou à un seul chiffre des ventes nettes et un bénéfice par action dilué ajusté de 0,50 $ - 0,60 $.
Designer Brands Inc. (NYSE: DBI) hat seine finanziellen Ergebnisse für das zweite Quartal 2024 veröffentlicht und einen Rückgang der Nettoumsätze um 2,6% auf 771,9 Millionen US-Dollar sowie eine Verringerung der vergleichbaren Umsätze um 1,4% festgestellt. Der Bruttogewinn des Unternehmens sank auf 252,9 Millionen US-Dollar gegenüber 273,4 Millionen US-Dollar im vergangenen Jahr, während die Bruttomarge von 34,5% auf 32,8% fiel. Trotz der Herausforderungen in den Kategorien Kleider und Saisonartikel verzeichnete DBI ein Wachstum von 8% bei den Verkaufszahlen im Freizeitsport-Bereich und übertraf den Markt um mehr als 4 Prozentpunkte. Das Unternehmen meldete ein Nettoeinkommen von 13,8 Millionen US-Dollar und ein korrigiertes Nettoeinkommen von 17,1 Millionen US-Dollar. DBI hat seine Prognose für 2024 aktualisiert und erwartet nun ein stabiles bis niedrig einstelliges Wachstum der Nettoumsätze sowie ein bereinigtes verwässertes EPS von $0,50 - $0,60.
- Athleisure category sales grew 8% in U.S. Retail segment, outpacing market growth by over 4 percentage points
- Total U.S. Retail sales outpaced the footwear market by 1 percentage point
- Solid start to the back-to-school season, particularly in kids' category
- Repurchased 2.7 million Class A common shares at an aggregate cost of $18.0 million
- Net sales decreased 2.6% to $771.9 million
- Total comparable sales decreased by 1.4%
- Gross profit decreased to $252.9 million from $273.4 million last year
- Gross margin declined to 32.8% from 34.5% last year
- Debt increased to $465.7 million from $331.0 million in the same period last year
- Lowered full-year 2024 guidance for net sales growth and adjusted diluted EPS
Insights
Designer Brands' Q2 results reveal a mixed performance with some concerning trends. The
The reduction in gross margin from
The lowered guidance for Adjusted Diluted EPS from
Designer Brands' strategic pivot towards athleisure is showing promise, with
The company's success in the back-to-school season, particularly in the kids' category, demonstrates effective market positioning. However, the continued pressure on dress and seasonal categories highlights the need for further assortment optimization.
The focus on refining marketing and enhancing omnichannel experiences is important in a market where consumers are becoming more discretionary in their spending. Designer Brands' ability to adapt to rapidly evolving trends will be key to maintaining market share in a challenging retail landscape.
Reported third consecutive quarter of sequential comparable sales improvement
Impressive performance in growing athleisure category, which outpaced the market by over 4 percentage points
"This quarter, we further built on our track record of steady improvement as we continued to refine and refresh our strategic initiatives intended to accelerate our ongoing business transformation," stated Doug Howe, Chief Executive Officer. "We saw sustained pressure on challenged categories such as dress and seasonal in the second quarter, which we were able to partially mitigate through providing a greater selection of athletic and athleisure brands in our assortment. During the second quarter, we drove athleisure category sales growth of
Howe continued, "We continue to believe that our investments across our retail and brand businesses will help us to accelerate growth moving forward as we sharpen our focus and optimize our assortment, our marketing, and our omnichannel customer experience. With shoppers becoming increasingly mindful of their discretionary spending, and trends rapidly evolving, we want to ensure that we remain top of mind as the destination for all their footwear needs."
Second Quarter Operating Results (Unless otherwise stated, all comparisons are to the second quarter of 2023)
- Net sales decreased
2.6% to$771.9 million - Total comparable sales decreased by
1.4% . - Gross profit decreased to
$252.9 million $273.4 million 32.8% compared to34.5% last year. - Reported net income attributable to Designer Brands Inc. was
$13.8 million $0.24 $0.05 - Adjusted net income was
$17.1 million $0.29
Liquidity
- Cash and cash equivalents totaled
$38.8 million $46.2 million $155.1 million $465.7 million $331.0 million - The Company ended the second quarter with inventories of
$642.8 million $606.8 million
Return to Shareholders
- During the second quarter of 2024, the Company repurchased 2.7 million Class A common shares at an aggregate cost of
$18.0 million $69.7 million
Store Openings and Closings
During the second quarter of 2024, the Company closed one store in
Updated 2024 Financial Outlook
The Company has updated the following guidance for the full year 2024:
Metric | Previous Guidance | Current Guidance | ||
Designer Brands Net Sales Growth | Low-single digits | Flat to low-single digits | ||
Adjusted Diluted EPS |
Forward-looking adjusted diluted EPS for 2024 excludes potential charges or gains that may be recorded during the fiscal year, including among other things: (1) restructuring and integration costs, including severance charges; (2) acquisition-related costs; (3) impairment charges; (4) foreign currency transaction losses (gains); (5) the net tax impact of such items; (6) the change in the valuation allowance on deferred tax assets; and (7) net income attributable to redeemable noncontrolling interest. A reconciliation of forward-looking non-GAAP earnings guidance to the comparable GAAP measure is not provided, as permitted by Item 10(e)(1)(i)(B) of Regulation S-K, because the impact and timing of these potential charges or gains is inherently uncertain and difficult to predict and is unavailable without unreasonable efforts. In addition, the Company believes that such reconciliations would imply a degree of precision and certainty that could be confusing to investors. Such items are uncertain and could have a substantial impact on GAAP measures of our financial performance.
Webcast and Conference Call
The Company is hosting a conference call today at 8:30 am Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-888-317-6003, or the international dial-in, 1-412-317-6061, and reference conference ID number 9337169 approximately ten minutes prior to the start of the conference call. The conference call will also be broadcast live over the internet and can be accessed through the following link, as well as through the Company's investor website at investors.designerbrands.com:
https://app.webinar.net/wjDQNwDnZxP
For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until September 18, 2024. A replay of the teleconference will be available by dialing the following numbers:
International: 1-412-317-0088
Passcode: 4546270
Important information may be disseminated initially or exclusively via the Company's investor website; investors should consult the website to access this information.
About Designer Brands
Designer Brands is one of the world's largest designers, producers, and retailers of the most recognizable footwear brands and accessories, transforming and defining the footwear industry through a mission of inspiring self-expression. With a diversified, world-class portfolio of coveted brands, including Crown Vintage, Hush Puppies, Jessica Simpson, Keds, Kelly & Katie, Lucky Brand, Mix No. 6, Topo Athletic, Vince Camuto and others, Designer Brands designs and produces on-trend footwear and accessories for all of life's occasions, delivered to the consumer through a robust direct-to-consumer omni-channel infrastructure and powerful national wholesale distribution. Powered by a billion-dollar digital commerce business across multiple domains and 676 DSW Designer Shoe Warehouse, The Shoe Co., and Rubino stores in
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
Certain statements in this press release may constitute forward-looking statements and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "could," "believes," "expects," "potential," "continues," "may," "will," "should," "would," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words. These statements are based on the Company's current views and expectations and involve known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by the forward-looking statements. These factors include, but are not limited to: uncertain general economic and financial conditions, including concerns of a potential recession in the
DESIGNER BRANDS INC. SEGMENT RESULTS (unaudited)
| |||||||||||
Net Sales | |||||||||||
Three months ended | |||||||||||
(dollars in thousands) | August 3, 2024 | July 29, 2023 | Change | ||||||||
Amount | % of Segment | Amount | % of Segment | Amount | % | ||||||
Segment net sales: | |||||||||||
$ 641,694 | 79.0 % | $ 658,542 | 81.0 % | $ (16,848) | (2.6) % | ||||||
Canada Retail | 74,797 | 9.2 % | 70,266 | 8.6 % | 4,531 | 6.4 % | |||||
Brand Portfolio | 95,993 | 11.8 % | 84,217 | 10.4 % | 11,776 | 14.0 % | |||||
Total segment net sales | 812,484 | 100.0 % | 813,025 | 100.0 % | (541) | (0.1) % | |||||
Elimination of intersegment net sales | (40,584) | (20,808) | (19,776) | 95.0 % | |||||||
Consolidated net sales | $ 771,900 | $ 792,217 | $ (20,317) | (2.6) % | |||||||
Six months ended | |||||||||||
(dollars in thousands) | August 3, 2024 | July 29, 2023 | Change | ||||||||
Amount | % of Segment | Amount | % of Segment | Amount | % | ||||||
Segment net sales: | |||||||||||
$ 1,263,061 | 79.3 % | $ 1,271,428 | 80.8 % | $ (8,367) | (0.7) % | ||||||
Canada Retail | 130,309 | 8.2 % | 124,221 | 7.9 % | 6,088 | 4.9 % | |||||
Brand Portfolio | 200,123 | 12.5 % | 177,200 | 11.3 % | 22,923 | 12.9 % | |||||
Total segment net sales | 1,593,493 | 100.0 % | 1,572,849 | 100.0 % | 20,644 | 1.3 % | |||||
Elimination of intersegment net sales | (74,997) | (38,550) | (36,447) | 94.5 % | |||||||
Consolidated net sales | $ 1,518,496 | $ 1,534,299 | $ (15,803) | (1.0) % | |||||||
Net Sales by Brand Categories | |||||||||
(in thousands) | Canada Retail(2) | Brand Portfolio | Eliminations | Consolidated | |||||
Three months ended August 3, 2024 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 98,040 | $ 10,550 | $ 13,889 | $ — | $ 122,479 | ||||
External customer wholesale, commission income, and other | — | — | 41,520 | — | 41,520 | ||||
Intersegment wholesale | — | — | 40,584 | (40,584) | — | ||||
Total Owned Brands | 98,040 | 10,550 | 95,993 | (40,584) | 163,999 | ||||
National brands | 543,654 | 64,247 | — | — | 607,901 | ||||
Total net sales | $ 641,694 | $ 74,797 | $ 95,993 | $ (40,584) | $ 771,900 | ||||
Three months ended July 29, 2023 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 115,749 | $ 10,048 | $ 15,776 | $ — | $ 141,573 | ||||
External customer wholesale, commission income, and other | — | — | 47,633 | — | 47,633 | ||||
Intersegment wholesale and commission income | — | — | 20,808 | (20,808) | — | ||||
Total Owned Brands | 115,749 | 10,048 | 84,217 | (20,808) | 189,206 | ||||
National brands | 542,793 | 60,218 | — | — | 603,011 | ||||
Total net sales | $ 658,542 | $ 70,266 | $ 84,217 | $ (20,808) | $ 792,217 | ||||
Six months ended August 3, 2024 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 203,054 | $ 18,910 | $ 27,819 | $ — | $ 249,783 | ||||
External customer wholesale, commission income, and other | — | — | 97,307 | — | 97,307 | ||||
Intersegment wholesale | — | — | 74,997 | (74,997) | — | ||||
Total Owned Brands | 203,054 | 18,910 | 200,123 | (74,997) | 347,090 | ||||
National brands | 1,060,007 | 111,399 | — | — | 1,171,406 | ||||
Total net sales | $ 1,263,061 | $ 130,309 | $ 200,123 | $ (74,997) | $ 1,518,496 | ||||
Six months ended July 29, 2023 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 238,958 | $ 17,920 | $ 26,400 | $ — | $ 283,278 | ||||
External customer wholesale, commission income, and other | — | — | 112,250 | — | 112,250 | ||||
Intersegment wholesale and commission income | — | — | 38,550 | (38,550) | — | ||||
Total Owned Brands | 238,958 | 17,920 | 177,200 | (38,550) | 395,528 | ||||
National brands | 1,032,470 | 106,301 | — | — | 1,138,771 | ||||
Total net sales | $ 1,271,428 | $ 124,221 | $ 177,200 | $ (38,550) | $ 1,534,299 | ||||
(1) | "Owned Brands" refers to those brands that we have rights to sell through ownership or license arrangements. |
(2) | Beginning with the 2023 Form 10-K, we are providing a breakout of Canada Retail segment net sales by brand categories and we have recast the three months and the six months ended July 29, 2023 on a consistent basis. |
Comparable Sales | |||||||
Three months ended | Six months ended | ||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||
Change in comparable sales: | |||||||
(1.1) % | (9.2) % | (1.7) % | (10.4) % | ||||
Canada Retail segment | (3.1) % | (7.3) % | (3.9) % | (3.0) % | |||
Brand Portfolio segment - direct-to-consumer channel | (7.0) % | 0.5 % | (4.8) % | 5.3 % | |||
Total | (1.4) % | (8.9) % | (1.9) % | (9.6) % | |||
Store Count | |||||||
(square footage in thousands) | August 3, 2024 | July 29, 2023 | |||||
Number of | Square | Number of | Square | ||||
499 | 9,879 | 498 | 9,978 | ||||
Canada Retail segment: | |||||||
The Shoe Co. stores | 123 | 631 | 113 | 594 | |||
DSW stores | 26 | 511 | 25 | 496 | |||
Rubino Stores | 28 | 149 | — | — | |||
177 | 1,291 | 138 | 1,090 | ||||
Total number of stores | 676 | 11,170 | 636 | 11,068 | |||
Gross Profit | |||||||||||||
Three months ended | |||||||||||||
(dollars in thousands) | August 3, 2024 | July 29, 2023 | Change | ||||||||||
Amount | % of Segment | Amount | % of Segment | Amount | % | Basis Points | |||||||
Segment gross profit: | |||||||||||||
$ 206,061 | 32.1 % | $ 225,768 | 34.3 % | $ (19,707) | (8.7) % | (220) | |||||||
Canada Retail | 25,307 | 33.8 % | 23,811 | 33.9 % | 1,496 | 6.3 % | (10) | ||||||
Brand Portfolio | 26,635 | 27.7 % | 24,298 | 28.9 % | 2,337 | 9.6 % | (120) | ||||||
Total segment gross profit | 258,003 | 31.8 % | 273,877 | 33.7 % | (15,874) | (5.8) % | (190) | ||||||
Net elimination of intersegment gross profit | (5,089) | (490) | (4,599) | ||||||||||
Consolidated gross profit | $ 252,914 | 32.8 % | $ 273,387 | 34.5 % | $ (20,473) | (7.5) % | (170) | ||||||
Six months ended | |||||||||||||
(dollars in thousands) | August 3, 2024 | July 29, 2023 | Change | ||||||||||
Amount | % of Segment | Amount | % of Segment | Amount | % | Basis Points | |||||||
Segment gross profit: | |||||||||||||
$ 404,516 | 32.0 % | $ 422,582 | 33.2 % | $ (18,066) | (4.3) % | (120) | |||||||
Canada Retail | 42,692 | 32.8 % | 40,985 | 33.0 % | 1,707 | 4.2 % | (20) | ||||||
Brand Portfolio | 60,112 | 30.0 % | 46,383 | 26.2 % | 13,729 | 29.6 % | 380 | ||||||
Total segment gross profit | 507,320 | 31.8 % | 509,950 | 32.4 % | (2,630) | (0.5) % | (60) | ||||||
Net recognition (elimination) of intersegment gross profit | (9,337) | 1,176 | (10,513) | ||||||||||
Consolidated gross profit | $ 497,983 | 32.8 % | $ 511,126 | 33.3 % | $ (13,143) | (2.6) % | (50) | ||||||
Intersegment Eliminations | |||
Three months ended | |||
(in thousands) | August 3, 2024 | July 29, 2023 | |
Intersegment recognition and elimination activity: | |||
Elimination of net sales recognized by Brand Portfolio segment | $ (40,584) | $ (20,808) | |
Cost of sales: | |||
Elimination of cost of sales recognized by Brand Portfolio segment | 28,174 | 15,066 | |
Recognition of intersegment gross profit for inventory previously purchased that | 7,321 | 5,252 | |
$ (5,089) | $ (490) | ||
Six months ended | |||
(in thousands) | August 3, 2024 | July 29, 2023 | |
Intersegment recognition and elimination activity: | |||
Elimination of net sales recognized by Brand Portfolio segment | $ (74,997) | $ (38,550) | |
Cost of sales: | |||
Elimination of cost of sales recognized by Brand Portfolio segment | 52,267 | 28,277 | |
Recognition of intersegment gross profit for inventory previously purchased that | 13,393 | 11,449 | |
$ (9,337) | $ 1,176 | ||
DESIGNER BRANDS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) | |||||||
Three months ended | Six months ended | ||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||
Net sales | $ 771,900 | $ 792,217 | $ 1,518,496 | $ 1,534,299 | |||
Cost of sales | (518,986) | (518,830) | (1,020,513) | (1,023,173) | |||
Gross profit | 252,914 | 273,387 | 497,983 | 511,126 | |||
Operating expenses | (226,896) | (214,530) | (465,447) | (434,649) | |||
Income from equity investments | 2,571 | 2,138 | 5,435 | 4,469 | |||
Impairment charges | — | (308) | — | (649) | |||
Operating profit | 28,589 | 60,687 | 37,971 | 80,297 | |||
Interest expense, net | (11,035) | (6,932) | (22,596) | (13,529) | |||
Non-operating income (expenses), net | (109) | 579 | (252) | 245 | |||
Income before income taxes | 17,445 | 54,334 | 15,123 | 67,013 | |||
Income tax provision | (3,363) | (17,079) | (156) | (18,385) | |||
Net income | 14,082 | 37,255 | 14,967 | 48,628 | |||
Net income attributable to redeemable noncontrolling interest | (258) | (51) | (360) | (9) | |||
Net income attributable to Designer Brands Inc. | $ 13,824 | $ 37,204 | $ 14,607 | $ 48,619 | |||
Diluted earnings per share attributable to Designer Brands Inc. | $ 0.24 | $ 0.56 | $ 0.25 | $ 0.73 | |||
Weighted average diluted shares | 58,576 | 66,997 | 58,978 | 66,863 | |||
DESIGNER BRANDS INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) | |||||
August 3, 2024 | February 3, 2024 | July 29, 2023 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 38,834 | $ 49,173 | $ 46,187 | ||
Receivables, net | 49,671 | 83,590 | 97,364 | ||
Inventories | 642,783 | 571,331 | 606,841 | ||
Prepaid expenses and other current assets | 66,760 | 73,338 | 50,308 | ||
Total current assets | 798,048 | 777,432 | 800,700 | ||
Property and equipment, net | 216,313 | 219,939 | 226,634 | ||
Operating lease assets | 723,818 | 721,335 | 751,637 | ||
Goodwill | 130,611 | 123,759 | 135,259 | ||
Intangible assets, net | 86,334 | 82,827 | 72,640 | ||
Deferred tax assets | 39,997 | 39,067 | 48,100 | ||
Equity investments | 61,020 | 62,857 | 62,938 | ||
Other assets | 50,993 | 49,016 | 49,430 | ||
Total assets | $ 2,107,134 | $ 2,076,232 | $ 2,147,338 | ||
LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST, AND SHAREHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Accounts payable | $ 294,739 | $ 289,368 | $ 294,724 | ||
Accrued expenses | 161,155 | 159,622 | 172,130 | ||
Current maturities of long-term debt | 6,750 | 6,750 | 2,500 | ||
Current operating lease liabilities | 156,394 | 166,531 | 181,484 | ||
Total current liabilities | 619,038 | 622,271 | 650,838 | ||
Long-term debt | 458,974 | 420,344 | 328,506 | ||
Non-current operating lease liabilities | 653,416 | 646,161 | 682,248 | ||
Other non-current liabilities | 16,642 | 24,948 | 22,784 | ||
Total liabilities | 1,748,070 | 1,713,724 | 1,684,376 | ||
Redeemable noncontrolling interest | 3,519 | 3,288 | 3,144 | ||
Total shareholders' equity | 355,545 | 359,220 | 459,818 | ||
Total liabilities, redeemable noncontrolling interest, and shareholders' equity | $ 2,107,134 | $ 2,076,232 | $ 2,147,338 | ||
DESIGNER BRANDS INC. NON-GAAP RECONCILIATION (unaudited and in thousands, except per share amounts) | |||||||
Three months ended | Six months ended | ||||||
August 3, 2024 | July 29, 2023 | August 3, 2024 | July 29, 2023 | ||||
Operating expenses | $ (226,896) | $ (214,530) | $ (465,447) | $ (434,649) | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 744 | — | 2,954 | |||
Restructuring and integration costs | 2,349 | 818 | 7,178 | 2,938 | |||
Acquisition-related costs | 1,586 | 90 | 2,072 | 1,597 | |||
Total non-GAAP adjustments | 3,935 | 1,652 | 9,250 | 7,489 | |||
Adjusted operating expenses | $ (222,961) | $ (212,878) | $ (456,197) | $ (427,160) | |||
Operating profit | $ 28,589 | $ 60,687 | $ 37,971 | $ 80,297 | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 744 | — | 2,954 | |||
Restructuring and integration costs | 2,349 | 818 | 7,178 | 2,938 | |||
Acquisition-related costs | 1,586 | 90 | 2,072 | 1,597 | |||
Impairment charges | — | 308 | — | 649 | |||
Total non-GAAP adjustments | 3,935 | 1,960 | 9,250 | 8,138 | |||
Adjusted operating profit | $ 32,524 | $ 62,647 | $ 47,221 | $ 88,435 | |||
Net income attributable to Designer Brands Inc. | $ 13,824 | $ 37,204 | $ 14,607 | $ 48,619 | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 744 | — | 2,954 | |||
Restructuring and integration costs | 2,349 | 818 | 7,178 | 2,938 | |||
Acquisition-related costs | 1,586 | 90 | 2,072 | 1,597 | |||
Impairment charges | — | 308 | — | 649 | |||
Foreign currency transaction losses (gains) | 109 | (579) | 252 | (245) | |||
Total non-GAAP adjustments before tax effect | 4,044 | 1,381 | 9,502 | 7,893 | |||
Tax effect on above non-GAAP adjustments | (1,149) | (377) | (2,547) | (2,032) | |||
Discrete and permanent tax on non-deductible CEO transition costs | — | 1,750 | — | 1,897 | |||
Valuation allowance change on deferred tax assets | 94 | (607) | (42) | (2,724) | |||
Total non-GAAP adjustments, after tax | 2,989 | 2,147 | 6,913 | 5,034 | |||
Net income attributable to redeemable noncontrolling interest | 258 | 51 | 360 | 9 | |||
Adjusted net income | $ 17,071 | $ 39,402 | $ 21,880 | $ 53,662 | |||
Diluted earnings per share | $ 0.24 | $ 0.56 | $ 0.25 | $ 0.73 | |||
Adjusted diluted earnings per share | $ 0.29 | $ 0.59 | $ 0.37 | $ 0.80 | |||
Non-GAAP Measures
To supplement amounts presented in our consolidated financial statements determined in accordance with accounting principles generally accepted in the
Comparable Sales Performance Metric
We consider the percent change in comparable sales from the same previous year period, a primary metric commonly used throughout the retail industry, to be an important measurement for management and investors of the performance of our direct-to-consumer businesses. We include in our comparable sales metric sales from stores in operation for at least 14 months at the beginning of the applicable year. Stores are added to the comparable base at the beginning of the year and are dropped for comparative purposes in the quarter in which they are closed. Comparable sales include the e-commerce sales of the
CONTACT: Stacy Turnof, DesignerBrandsIR@edelman.com
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SOURCE Designer Brands Inc.
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