Designer Brands Inc., based in Columbus and renowned for retail chains like DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse, reports a 9.1% dip in net sales for Q3 ending October 28, 2023. The company, recognized for its Camuto Group-produced footwear and accessories, records net sales at $786.3 million, accompanied by a 9.3% decline in comparable sales.
In the U.S. retail segment, sales decrease by 10.6%, reaching $631.61 million, while the Canada retail segment experiences an 8.1% drop with quarterly sales of $75.61 million. The brand portfolio segment sees a 12.5% reduction in sales, totaling $94.057 million.
Despite challenges, Designer Brands reports a net income of $10.1 million, translating to diluted earnings per share of $0.17. Expanding its physical presence, the company opens one U.S. store and six Canadian stores during the quarter, reaching a total of 499 U.S. stores and 144 Canadian stores.
CEO Doug Howe recognizes market challenges, emphasizing the need for increased speed, innovation, and a fashion-focused assortment strategy. Looking forward, Designer Brands revises its 2023 full-year guidance, anticipating a high-single-digit decline in net sales growth (excluding Keds). Adjusted diluted EPS for Designer Brands (excluding Keds) is expected in the range of $0.40 to $0.70. Explore Designer Brands’ strategic initiatives as it navigates market dynamics, embracing innovation and fashion in its product offerings.
