Designer Brands Inc. Reports Third Quarter 2024 Financial Results
Designer Brands Inc. (NYSE: DBI) reported Q3 2024 financial results showing a 1.2% decrease in net sales to $777.2 million and a 3.1% decline in total comparable sales. Gross profit decreased to $247.4 million from $256.4 million, with gross margin dropping to 31.8% from 32.6%. The company reported net income of $13.0 million, or $0.24 EPS.
The quarter started strong with back-to-school season but faced challenges due to warm weather and macroeconomic pressures. While footwear sales excluding boots remained flat in the market, U.S. Retail segment sales excluding boots grew 8%. The company has significantly revised its 2024 guidance, now expecting net sales to decline in low single digits and adjusted diluted EPS between $0.10-$0.30, down from previous guidance of $0.50-$0.60.
Designer Brands Inc. (NYSE: DBI) ha riportato i risultati finanziari del terzo trimestre 2024, evidenziando una riduzione dell'1,2% delle vendite nette, che ammontano a 777,2 milioni di dollari, e un declino del 3,1% nelle vendite comparabili totali. Il profitto lordo è diminuito a 247,4 milioni di dollari rispetto ai 256,4 milioni di dollari, con un margine lordo sceso al 31,8% dal 32,6%. L'azienda ha riportato un reddito netto di 13,0 milioni di dollari, corrispondente a $0,24 di utile per azione.
Il trimestre è iniziato in modo positivo grazie alla stagione di ritorno a scuola, ma ha affrontato sfide a causa del clima caldo e delle pressioni macroeconomiche. Mentre le vendite di calzature, escluse le scarpe da stivale, sono rimaste stabili sul mercato, le vendite del segmento retail statunitense escluse le scarpe da stivale sono cresciute dell'8%. L'azienda ha significativamente rivisto le sue previsioni per il 2024, ora prevedendo una diminuzione delle vendite nette di pochi punti percentuali e un utile per azione diluito rettificato compreso tra $0,10 e $0,30, rispetto alle previsioni precedenti di $0,50-$0,60.
Designer Brands Inc. (NYSE: DBI) informó los resultados financieros del tercer trimestre de 2024, mostrando una disminución del 1.2% en las ventas netas a 777.2 millones de dólares y un declive del 3.1% en las ventas comparables totales. La ganancia bruta disminuyó a 247.4 millones de dólares desde 256.4 millones de dólares, con un margen bruto cayendo al 31.8% desde el 32.6%. La compañía reportó un ingreso neto de 13.0 millones de dólares, es decir, $0.24 de utilidad por acción.
El trimestre comenzó fuerte gracias a la temporada de regreso a clases, pero enfrentó desafíos debido al clima cálido y presiones macroeconómicas. Mientras que las ventas de calzado, excluyendo botas, se mantuvieron estables en el mercado, las ventas del segmento minorista en EE. UU., excluyendo botas, crecieron un 8%. La empresa ha revisado significativamente su guía para 2024, ahora esperando que las ventas netas disminuyan en cifras de un solo dígito bajo y un EPS diluido ajustado entre $0.10 y $0.30, a la baja desde la guía anterior de $0.50 a $0.60.
디자이너 브랜드 주식회사 (NYSE: DBI)는 2024년 3분기 재무 결과를 발표하며 순매출이 1.2% 감소하여 7억 7720만 달러를 기록했으며, 총 비교 매출이 3.1% 감소했다고 보고했습니다. 총 이익은 2억 4740만 달러로 줄어들었고, 총 이익률은 32.6%에서 31.8%로 떨어졌습니다. 이 회사는 1300만 달러의 순이익을 보고했으며, 주당 0.24달러의 순이익을 기록했습니다.
이번 분기는 개학 시즌으로 강하게 시작했으나, 따뜻한 날씨와 거시경제적 압박으로 인해 도전 과제를 겪었습니다. 부츠를 제외한 신발 판매는 시장에서 비슷한 수준을 유지했지만, U.S. 소매 부문에서 부츠를 제외한 판매는 8% 증가했습니다. 회사는 2024년 가이드를 대폭 수정하여 순매출이 저조한 단일 수치로 감소할 것으로 예상하고 있으며, 조정된 희석 EPS는 0.10달러에서 0.30달러 사이로, 이전 가이드인 0.50달러에서 0.60달러에서 하향 조정되었습니다.
Designer Brands Inc. (NYSE: DBI) a publié les résultats financiers pour le troisième trimestre 2024, montrant une diminution de 1,2 % des ventes nettes à 777,2 millions de dollars et un dépassement de 3,1 % des ventes comparables totales. Le bénéfice brut a diminué pour atteindre 247,4 millions de dollars contre 256,4 millions de dollars, avec une marge brute passant de 32,6 % à 31,8 %. L'entreprise a déclaré un bénéfice net de 13,0 millions de dollars, soit un bénéfice par action de 0,24 $.
Le trimestre a commencé fort grâce à la saison de la rentrée, mais a rencontré des défis en raison de la chaleur et de pressions macroéconomiques. Alors que les ventes de chaussures, hors bottes, sont restées constantes sur le marché, les ventes du segment de détail américain hors bottes ont augmenté de 8 %. L'entreprise a considérablement révisé ses prévisions pour 2024, s'attendant désormais à une baisse des ventes nettes de quelques points en pourcentage et à un bénéfice par action dilué ajusté entre 0,10 $ et 0,30 $, par rapport aux prévisions précédentes de 0,50 $ à 0,60 $.
Designer Brands Inc. (NYSE: DBI) berichtete über die finanziellen Ergebnisse des dritten Quartals 2024 mit einem Rückgang der Nettoumsätze um 1,2% auf 777,2 Millionen Dollar und einem Rückgang der gesamten vergleichbaren Verkäufe um 3,1%. Der Bruttogewinn sank auf 247,4 Millionen Dollar von 256,4 Millionen Dollar, während die Bruttomarge auf 31,8% von 32,6% fiel. Das Unternehmen meldete einen Nettoertrag von 13,0 Millionen Dollar, was einem Gewinn pro Aktie von 0,24 Dollar entspricht.
Das Quartal begann stark mit der Schulanfangsaison, sah sich jedoch Herausforderungen durch warmes Wetter und makroökonomische Druckbewegungen gegenüber. Während die Schuhverkäufe ohne Stiefel auf dem Markt stabil blieben, wuchsen die Verkäufe im US-Einzelhandelssegment ohne Stiefel um 8%. Das Unternehmen hat seine Prognosen für 2024 erheblich überarbeitet und erwartet nun, dass die Nettoumsätze im niedrigen einstelligen Bereich zurückgehen und der bereinigte, verwässerte Gewinn pro Aktie zwischen 0,10 und 0,30 Dollar liegt, gegenüber den vorherigen Prognosen von 0,50 bis 0,60 Dollar.
- U.S. Retail segment sales excluding boots grew 8% versus prior year
- Company maintained $118.3 million in available credit facility
- Repurchased 7.7 million Class A common shares at $50.6 million
- Net sales decreased 1.2% to $777.2 million
- Total comparable sales declined 3.1%
- Gross profit margin decreased to 31.8% from 32.6%
- Debt increased to $536.3 million from $375.5 million YoY
- Significant downward revision in 2024 EPS guidance to $0.10-$0.30 from $0.50-$0.60
- Cash position decreased to $36.2 million from $54.6 million YoY
Insights
The Q3 results and revised guidance paint a concerning picture for Designer Brands. Net sales declined 1.2% to
Most alarming is the significant downward revision in full-year guidance, with adjusted EPS now expected at
While the company's non-boot footwear segment outperformed the market, growing
The footwear market dynamics reveal a mixed picture. While Designer Brands showed strength in performance, leisure and dress footwear categories, the weakness in seasonal boots significantly impacted overall performance. The warm weather's negative effect on boot sales highlights the company's vulnerability to seasonal factors and changing consumer patterns.
The combination of macroeconomic pressures affecting discretionary spending and inventory levels increasing to
According to Circana,
Doug Howe, Chief Executive Officer stated, "The third quarter started strong, driven by back-to-school season and the success of our athletic and athleisure offerings, bolstering our confidence that we had reached a turning point in our business. However, we had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category. As a result, we saw our total Company comparable sales decline
Howe continued, "Although external challenges have persisted, I am encouraged by how effectively our business has stayed aligned with our strategic priorities and executing on the things within our control. As we make our way through the fourth quarter, we remain confident in our strategy and our ability to navigate headwinds as we implement a refreshed holiday marketing and merchandising approach. We continue to believe this focus will help us improve performance over the long-term."
Third Quarter Operating Results (Unless otherwise stated, all comparisons are to the third quarter of 2023)
- Net sales decreased
1.2% to$777.2 million - Total comparable sales decreased by
3.1% . - Gross profit decreased to
$247.4 million $256.4 million 31.8% compared to32.6% last year. - Reported net income attributable to Designer Brands Inc. was
$13.0 million $0.24 - Adjusted net income was
$14.5 million $0.27
Liquidity
- Cash and cash equivalents totaled
$36.2 million $54.6 million $118.3 million $536.3 million $375.5 million - The Company ended the third quarter with inventories of
$637.0 million $601.5 million
Return to Shareholders
- During the third quarter of 2024, the Company repurchased 7.7 million Class A common shares at an aggregate cost of
$50.6 million $19.7 million - A dividend of
$0.05
Store Openings and Closings
During the third quarter of 2024, the Company closed three stores 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 | Flat to low-single digits | Down 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 0882763 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/0K81jQ0A5Ra
For those unable to listen to the live webcast, an archived version will be available on the Company's investor website until December 17, 2024. A replay of the teleconference will be available by dialing the following numbers:
International: 1-412-317-0088
Passcode: 8250457
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 675 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 economic volatility, supply chain disruptions, new or increased tariffs and other barriers to trade, fluctuating interest rates, inflationary pressures, and the related impacts to consumer discretionary spending, as well as our ability to plan for and respond to the impact of these conditions; our ability to anticipate and respond to rapidly changing consumer preferences, seasonality, customer expectations, and fashion trends; the impact on our consumer traffic and demand, our business operations, and the operations of our suppliers, as we experience unseasonable weather, climate change evolves, and the frequency and severity of weather events increase; our ability to execute on our business strategies, including integrating and growing our Brand Portfolio segment, enhancing in-store and digital shopping experiences, and meeting consumer demands; whether we will be able to successfully and efficiently integrate our recent acquisitions in a manner that does not impede growth; our ability to maintain strong relationships with our vendors, manufacturers, licensors, and retailer customers; risks related to losses or disruptions associated with our distribution systems, including our distribution centers and stores, whether as a result of reliance on third-party providers or otherwise; risks related to cyber security threats and privacy or data security breaches or the potential loss or disruption of our information technology ("IT") systems, or those of our vendors; risks related to the implementation of new or updated IT systems; our ability to protect our reputation and to maintain the brands we license; our reliance on our loyalty programs and marketing to drive traffic, sales, and customer loyalty; our ability to successfully integrate new hires or changes in leadership and retain our existing management team, and to continue to attract qualified new personnel; risks related to restrictions imposed by our senior secured asset-based revolving credit facility, as amended ("ABL Revolver"), and our senior secured term loan credit agreement, as amended ("Term Loan"), that could limit our ability to fund our operations; our competitiveness with respect to style, price, brand availability, shopping platforms, and customer service; risks related to our international operations and our reliance on foreign sources for merchandise; our ability to comply with privacy laws and regulations, as well as other legal obligations; risks associated with climate change and other corporate responsibility issues; and uncertainties related to future legislation, regulatory reform, policy changes, or interpretive guidance on existing legislation. Risks and other factors that could cause our actual results to differ materially from our forward-looking statements are described in the Company's Annual Report on Form 10-K for the fiscal year ended February 3, 2024 ("2023 Form 10-K") or our other reports made or filed with the Securities and Exchange Commission. All forward-looking statements speak only as of the time when made. Except as may be required by applicable law, the Company undertakes no obligation to update or revise the forward-looking statements included in this press release to reflect any future events or circumstances.
DESIGNER BRANDS INC. SEGMENT RESULTS (unaudited)
| |||||||||||
Net Sales | |||||||||||
Three months ended | |||||||||||
(dollars in thousands) | November 2, 2024 | October 28, 2023 | Change | ||||||||
Amount | % of | Amount | % of | Amount | % | ||||||
Segment net sales: | |||||||||||
$ 615,495 | 75.9 % | $ 631,610 | 78.8 % | $ (16,115) | (2.6) % | ||||||
Canada Retail | 83,504 | 10.3 % | 75,610 | 9.5 % | 7,894 | 10.4 % | |||||
Brand Portfolio | 111,492 | 13.8 % | 94,057 | 11.7 % | 17,435 | 18.5 % | |||||
Total segment net sales | 810,491 | 100.0 % | 801,277 | 100.0 % | 9,214 | 1.1 % | |||||
Elimination of | (33,297) | (14,948) | (18,349) | 122.8 % | |||||||
Consolidated net sales | $ 777,194 | $ 786,329 | $ (9,135) | (1.2) % | |||||||
Nine months ended | |||||||||||
(dollars in thousands) | November 2, 2024 | October 28, 2023 | Change | ||||||||
Amount | % of | Amount | % of | Amount | % | ||||||
Segment net sales: | |||||||||||
$ 1,878,556 | 78.1 % | $ 1,903,038 | 80.2 % | $ (24,482) | (1.3) % | ||||||
Canada Retail | 213,813 | 8.9 % | 199,831 | 8.4 % | 13,982 | 7.0 % | |||||
Brand Portfolio | 311,615 | 13.0 % | 271,257 | 11.4 % | 40,358 | 14.9 % | |||||
Total segment net sales | 2,403,984 | 100.0 % | 2,374,126 | 100.0 % | 29,858 | 1.3 % | |||||
Elimination of | (108,294) | (53,498) | (54,796) | 102.4 % | |||||||
Consolidated net sales | $ 2,295,690 | $ 2,320,628 | $ (24,938) | (1.1) % | |||||||
Net Sales by Brand Categories | |||||||||
(in thousands) |
| Brand | Eliminations | Consolidated | |||||
Three months ended November 2, 2024 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 105,094 | $ 11,782 | $ 13,877 | $ — | $ 130,753 | ||||
External customer wholesale, commission | — | — | 64,318 | — | 64,318 | ||||
Intersegment wholesale | — | — | 33,297 | (33,297) | — | ||||
Total Owned Brands | 105,094 | 11,782 | 111,492 | (33,297) | 195,071 | ||||
National brands | 510,401 | 71,722 | — | — | 582,123 | ||||
Total net sales | $ 615,495 | $ 83,504 | $ 111,492 | $ (33,297) | $ 777,194 | ||||
Three months ended October 28, 2023 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 123,973 | $ 13,024 | $ 17,204 | $ — | $ 154,201 | ||||
External customer wholesale, commission | — | — | 61,905 | — | 61,905 | ||||
Intersegment wholesale and commission income | — | — | 14,948 | (14,948) | — | ||||
Total Owned Brands | 123,973 | 13,024 | 94,057 | (14,948) | 216,106 | ||||
National brands | 507,637 | 62,586 | — | — | 570,223 | ||||
Total net sales | $ 631,610 | $ 75,610 | $ 94,057 | $ (14,948) | $ 786,329 | ||||
Nine months ended November 2, 2024 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 308,148 | $ 30,692 | $ 41,696 | $ — | $ 380,536 | ||||
External customer wholesale, commission | — | — | 161,625 | — | 161,625 | ||||
Intersegment wholesale | — | — | 108,294 | (108,294) | — | ||||
Total Owned Brands | 308,148 | 30,692 | 311,615 | (108,294) | 542,161 | ||||
National brands | 1,570,408 | 183,121 | — | — | 1,753,529 | ||||
Total net sales | $ 1,878,556 | $ 213,813 | $ 311,615 | $ (108,294) | $ 2,295,690 | ||||
Nine months ended October 28, 2023 | |||||||||
Owned Brands:(1) | |||||||||
Direct-to-consumer | $ 362,931 | $ 30,944 | $ 43,604 | $ — | $ 437,479 | ||||
External customer wholesale, commission | — | — | 174,155 | — | 174,155 | ||||
Intersegment wholesale and commission income | — | — | 53,498 | (53,498) | — | ||||
Total Owned Brands | 362,931 | 30,944 | 271,257 | (53,498) | 611,634 | ||||
National brands | 1,540,107 | 168,887 | — | — | 1,708,994 | ||||
Total net sales | $ 1,903,038 | $ 199,831 | $ 271,257 | $ (53,498) | $ 2,320,628 | ||||
(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 nine months ended October 28, 2023 on a consistent basis. |
Comparable Sales | |||||||
Three months ended | Nine months ended | ||||||
November 2, 2024 | October 28, 2023 | November 2, 2024 | October 28, 2023 | ||||
Change in comparable sales: | |||||||
(2.8) % | (9.8) % | (2.1) % | (10.2) % | ||||
Canada Retail segment | (4.6) % | (7.7) % | (4.2) % | (4.8) % | |||
Brand Portfolio segment - direct-to- | (7.5) % | 7.0 % | (5.8) % | 6.0 % | |||
Total | (3.1) % | (9.3) % | (2.3) % | (9.5) % | |||
Store Count | |||||||
(square footage in thousands) | November 2, 2024 | October 28, 2023 | |||||
Number of | Square | Number of | Square | ||||
496 | 9,784 | 499 | 9,966 | ||||
Canada Retail segment: | |||||||
The Shoe Co. stores | 125 | 638 | 119 | 622 | |||
DSW stores | 26 | 511 | 25 | 496 | |||
Rubino Stores | 28 | 149 | — | — | |||
179 | 1,298 | 144 | 1,118 | ||||
Total number of stores | 675 | 11,082 | 643 | 11,084 | |||
Gross Profit | |||||||||||||
Three months ended | |||||||||||||
(dollars in thousands) | November 2, 2024 | October 28, 2023 | Change | ||||||||||
Amount | % of | Amount | % of | Amount | % | Basis | |||||||
Segment gross profit: | |||||||||||||
$ 187,790 | 30.5 % | $ 200,268 | 31.7 % | $ (12,478) | (6.2) % | (120) | |||||||
Canada Retail | 27,405 | 32.8 % | 26,606 | 35.2 % | 799 | 3.0 % | (240) | ||||||
Brand Portfolio | 31,313 | 28.1 % | 28,654 | 30.5 % | 2,659 | 9.3 % | (240) | ||||||
Total segment gross profit | 246,508 | 30.4 % | 255,528 | 31.9 % | (9,020) | (3.5) % | (150) | ||||||
Net recognition of intersegment | 937 | 878 | 59 | ||||||||||
Consolidated gross profit | $ 247,445 | 31.8 % | $ 256,406 | 32.6 % | $ (8,961) | (3.5) % | (80) | ||||||
Nine months ended | |||||||||||||
(dollars in thousands) | November 2, 2024 | October 28, 2023 | Change | ||||||||||
Amount | % of | Amount | % of | Amount | % | Basis | |||||||
Segment gross profit: | |||||||||||||
$ 592,306 | 31.5 % | $ 622,850 | 32.7 % | $ (30,544) | (4.9) % | (120) | |||||||
Canada Retail | 70,097 | 32.8 % | 67,591 | 33.8 % | 2,506 | 3.7 % | (100) | ||||||
Brand Portfolio | 91,425 | 29.3 % | 75,037 | 27.7 % | 16,388 | 21.8 % | 160 | ||||||
Total segment gross profit | 753,828 | 31.4 % | 765,478 | 32.2 % | (11,650) | (1.5) % | (80) | ||||||
Net recognition (elimination) of | (8,400) | 2,054 | (10,454) | ||||||||||
Consolidated gross profit | $ 745,428 | 32.5 % | $ 767,532 | 33.1 % | $ (22,104) | (2.9) % | (60) | ||||||
Intersegment Eliminations | |||
Three months ended | |||
(in thousands) | November 2, 2024 | October 28, 2023 | |
Intersegment recognition and elimination activity: | |||
Elimination of net sales recognized by Brand Portfolio segment | $ (33,297) | $ (14,948) | |
Cost of sales: | |||
Elimination of cost of sales recognized by Brand Portfolio segment | 23,823 | 9,857 | |
Recognition of intersegment gross profit for inventory previously purchased that | 10,411 | 5,969 | |
$ 937 | $ 878 | ||
Nine months ended | |||
(in thousands) | November 2, 2024 | October 28, 2023 | |
Intersegment recognition and elimination activity: | |||
Elimination of net sales recognized by Brand Portfolio segment | $ (108,294) | $ (53,498) | |
Cost of sales: | |||
Elimination of cost of sales recognized by Brand Portfolio segment | 76,090 | 38,134 | |
Recognition of intersegment gross profit for inventory previously purchased that | 23,804 | 17,418 | |
$ (8,400) | $ 2,054 | ||
DESIGNER BRANDS INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except per share amounts) | |||||||
Three months ended | Nine months ended | ||||||
November 2, | October 28, | November 2, | October 28, | ||||
Net sales | $ 777,194 | $ 786,329 | $ 2,295,690 | $ 2,320,628 | |||
Cost of sales | (529,749) | (529,923) | (1,550,262) | (1,553,096) | |||
Gross profit | 247,445 | 256,406 | 745,428 | 767,532 | |||
Operating expenses | (210,457) | (230,788) | (675,904) | (665,437) | |||
Income from equity investments | 3,584 | 2,503 | 9,019 | 6,972 | |||
Impairment charges | (17,756) | — | (17,756) | (649) | |||
Operating profit | 22,816 | 28,121 | 60,787 | 108,418 | |||
Interest expense, net | (11,565) | (8,767) | (34,161) | (22,296) | |||
Non-operating income (expenses), net | (260) | (162) | (512) | 83 | |||
Income before income taxes | 10,991 | 19,192 | 26,114 | 86,205 | |||
Income tax benefit (provision) | 2,223 | (8,987) | 2,067 | (27,372) | |||
Net income | 13,214 | 10,205 | 28,181 | 58,833 | |||
Net income attributable to redeemable | (202) | (64) | (562) | (73) | |||
Net income attributable to Designer Brands Inc. | $ 13,012 | $ 10,141 | $ 27,619 | $ 58,760 | |||
Diluted earnings per share attributable to Designer | $ 0.24 | $ 0.17 | $ 0.48 | $ 0.90 | |||
Weighted average diluted shares | 53,486 | 61,405 | 57,116 | 65,292 | |||
DESIGNER BRANDS INC. | |||||
November 2, 2024 | February 3, 2024 | October 28, 2023 | |||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | $ 36,227 | $ 49,173 | $ 54,638 | ||
Receivables, net | 70,570 | 83,590 | 106,916 | ||
Inventories | 637,012 | 571,331 | 601,470 | ||
Prepaid expenses and other current assets | 56,864 | 73,338 | 36,785 | ||
Total current assets | 800,673 | 777,432 | 799,809 | ||
Property and equipment, net | 212,206 | 219,939 | 224,638 | ||
Operating lease assets | 707,544 | 721,335 | 742,384 | ||
Goodwill | 130,649 | 123,759 | 123,759 | ||
Intangible assets, net | 85,854 | 82,827 | 83,032 | ||
Deferred tax assets | 39,656 | 39,067 | 47,199 | ||
Equity investments | 53,358 | 62,857 | 62,239 | ||
Other assets | 50,824 | 49,016 | 49,518 | ||
Total assets | $ 2,080,764 | $ 2,076,232 | $ 2,132,578 | ||
LIABILITIES, REDEEMABLE NONCONTROLLING | |||||
Current liabilities: | |||||
Accounts payable | $ 238,040 | $ 289,368 | $ 310,113 | ||
Accrued expenses | 167,601 | 159,622 | 183,383 | ||
Current maturities of long-term debt | 6,750 | 6,750 | 2,500 | ||
Current operating lease liabilities | 155,220 | 166,531 | 182,259 | ||
Total current liabilities | 567,611 | 622,271 | 678,255 | ||
Long-term debt | 529,551 | 420,344 | 372,965 | ||
Non-current operating lease liabilities | 644,303 | 646,161 | 669,494 | ||
Other non-current liabilities | 17,521 | 24,948 | 21,072 | ||
Total liabilities | 1,758,986 | 1,713,724 | 1,741,786 | ||
Redeemable noncontrolling interest | 3,272 | 3,288 | 3,208 | ||
Total shareholders' equity | 318,506 | 359,220 | 387,584 | ||
Total liabilities, redeemable noncontrolling interest, and | $ 2,080,764 | $ 2,076,232 | $ 2,132,578 | ||
DESIGNER BRANDS INC. NON-GAAP RECONCILIATION (unaudited and in thousands, except per share amounts) | |||||||
Three months ended | Nine months ended | ||||||
November 2, | October 28, | November 2, | October 28, | ||||
Operating expenses | $ (210,457) | $ (230,788) | $ (675,904) | $ (665,437) | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 1,029 | — | 3,983 | |||
Restructuring and integration costs | 2,936 | 2,252 | 10,114 | 5,190 | |||
Acquisition-related costs | 82 | — | 2,154 | 1,597 | |||
Total non-GAAP adjustments | 3,018 | 3,281 | 12,268 | 10,770 | |||
Adjusted operating expenses | $ (207,439) | $ (227,507) | $ (663,636) | $ (654,667) | |||
Operating profit | $ 22,816 | $ 28,121 | $ 60,787 | $ 108,418 | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 1,029 | — | 3,983 | |||
Restructuring and integration costs | 2,936 | 2,252 | 10,114 | 5,190 | |||
Acquisition-related costs | 82 | — | 2,154 | 1,597 | |||
Impairment charges | 17,756 | — | 17,756 | 649 | |||
Total non-GAAP adjustments | 20,774 | 3,281 | 30,024 | 11,419 | |||
Adjusted operating profit | $ 43,590 | $ 31,402 | $ 90,811 | $ 119,837 | |||
Net income attributable to Designer Brands Inc. | $ 13,012 | $ 10,141 | $ 27,619 | $ 58,760 | |||
Non-GAAP adjustments: | |||||||
CEO transition costs | — | 1,029 | — | 3,983 | |||
Restructuring and integration costs | 2,936 | 2,252 | 10,114 | 5,190 | |||
Acquisition-related costs | 82 | — | 2,154 | 1,597 | |||
Impairment charges | 17,756 | — | 17,756 | 649 | |||
Foreign currency transaction losses (gains) | 260 | 162 | 512 | (83) | |||
Total non-GAAP adjustments before tax effect | 21,034 | 3,443 | 30,536 | 11,336 | |||
Tax effect on above non-GAAP adjustments | (19,478) | (853) | (22,025) | (2,885) | |||
Discrete and permanent tax on non-deductible | — | 907 | — | 2,804 | |||
Valuation allowance change on deferred tax | (306) | 1,109 | (348) | (1,615) | |||
Total non-GAAP adjustments, after tax | 1,250 | 4,606 | 8,163 | 9,640 | |||
Net income attributable to redeemable | 202 | 64 | 562 | 73 | |||
Adjusted net income | $ 14,464 | $ 14,811 | $ 36,344 | $ 68,473 | |||
Diluted earnings per share | $ 0.24 | $ 0.17 | $ 0.48 | $ 0.90 | |||
Adjusted diluted earnings per share | $ 0.27 | $ 0.24 | $ 0.64 | $ 1.05 | |||
Non-GAAP Measures
To supplement amounts presented in our condensed 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
View original content to download multimedia:https://www.prnewswire.com/news-releases/designer-brands-inc-reports-third-quarter-2024-financial-results-302326814.html
SOURCE Designer Brands Inc.
FAQ
What was Designer Brands (DBI) Q3 2024 net sales performance?
How much did Designer Brands (DBI) revise its 2024 EPS guidance?
What was Designer Brands (DBI) Q3 2024 comparable sales growth?
How much debt did Designer Brands (DBI) have at the end of Q3 2024?
