Designer Brands posts larger-than-expected loss
Designer Brands Inc., the Columbus, Ohio-based owner of DSW Designer Shoe Warehouse announced a net loss of $215.9 million, or $3.00 per diluted share, for the first quarter ended May 2, 2020, on Thursday, as the Covid-19 pandemic took its toll on the company’s operations. In the same period in the previous year, the retailer reported net income of $31.2 million, or $0.40 per share.
Adjusted net loss at the company was $131.8 million, or $1.83 per share, significantly larger than the adjusted loss of $0.60 per share expected by Wall Street analysts surveyed by FactSet, as reported by MarketWatch.
Designer Brands’ quarterly net sales totaled $482.8 million, down 44.7% from $873.3 million in the prior-year period, while comparable sales decreased 42.3%.
The company’s sales were impacted principally by temporary store closures implemented as a result of the coronavirus crisis. These lost revenues were partially offset by a 25% increase in sales in the retailer’s digital channels, which represented 50% of total demand for the quarter.
“I am proud of how our team has responded to the challenges and what we were able to accomplish in the first quarter,” commented Designer Brands CEO Roger Rawlins in a release. “Over the past several years, we have made significant investments in our digital infrastructure, and, as a result, we were able to generate strong digital demand during the first quarter.”
The company has now reopened 90% of its almost 1,000 stores and expects all of its locations to be operational by the end of the month.
Designer Brands did not provide financial guidance for fiscal 2020, citing continued uncertainty surrounding the impact of the Covid-19 pandemic.
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