1. Home
  2. Earnings Miss
  3. Designer Brands’ Q2 Earnings Miss Estimates, Comps Decline Y/Y

Designer Brands’ Q2 Earnings Miss Estimates, Comps Decline Y/Y

2
0

Designer Brands Inc. (NYSE: DBI) released second-quarter fiscal 2024 results, wherein both the bottom and top lines lagged the Zacks Consensus Estimate and declined year over year.

However, during the second quarter, the company continued to advance with its strategic initiatives aimed at business transformation. Despite challenges in categories like dress and seasonal footwear, the expansion of athletic and athleisure brands helped mitigate some of the pressure.

Looking ahead, the focus will be on investments in retail and brand businesses to drive growth. Enhancements in product assortment, marketing and the omnichannel customer experience are intended to ensure the company remains a top destination for footwear. These enhancements will also help it to adapt to changing consumer spending patterns and evolving market trends.

Designer Brands Inc. Price, Consensus and EPS Surprise

Designer Brands Inc. Price, Consensus and EPS Surprise

Designer Brands Inc. price-consensus-eps-surprise-chart | Designer Brands Inc. Quote

More on Designer Brands’ Q2 Results

Designer Brands posted adjusted earnings of 29 cents per share, which missed the Zacks Consensus Estimate of 56 cents. The company recorded earnings of 59 cents per share in the year-ago period.

Net sales were $771.9 million, down 2.6% year over year. The top line missed the Zacks Consensus Estimate of $819 million. Also, comparable sales (comps) decreased 1.4% year over year compared with the Zacks Consensus Estimate of a nearly 3.7% decline.

Insight Into DBI’s Margins & Expenses

Gross profit amounted to $252.9 million, down 7.5% from $273.4 million in the year-ago quarter. This was primarily due to lesser revenues. Also, the gross margin decreased 170 bps to 32.8% from the prior-year period’s level.

This decline was mainly due to a lower initial markup on athletic and athleisure products as the company focused on increasing its market share …

Full story available on Benzinga.com

Visited 2 times, 1 visit(s) today