Designer Brands Inc., the Columbus, Ohio-based owner of the DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse retail chains, announced on Tuesday that net sales decreased 3.2% in the third quarter ended November 1.
Designer Brands Q3 sales dip 3.2%. – DSW
The company achieved net sales of $752.4 million. Comparable sales fell by 2.4%, with the U.S. retail segment down 1.5%, Canada retail down 6.6%, and the brand portfolio segment’s direct-to-consumer channel plunging 21.5%.
Reported net income attributable to the company reached $18.2 million, or $0.35 per diluted share. Adjusted net income was $19.6 million, or $0.38 per diluted share.
“Our third quarter performance represents another meaningful step forward in our transformation, as we demonstrated continued sequential improvement across multiple financial and operating metrics,” said Doug Howe, chief executive officer.
“Stronger consumer demand and improved in-store execution drove improved comparable sales in the third quarter compared to the second quarter. Our team also delivered a meaningful increase in gross profit and diligently managed expenses, which helped drive an increase in operating income over last year.”
Looking ahead, the company expects net sales to decline between 3% and 5% in fiscal 2025. Adjusted operating profit is projected in the range of $50 million to $55 million.
Howe added, “I’m encouraged that this positive momentum has extended into the early part of the fourth quarter, reinforcing the progress of our strategic initiatives and positioning us well as we close out the year. While macroeconomic pressures persist, we are confident in our ability to navigate the near-term environment and continue making progress on our long-term strategies.”
