Designer Brands Q1 sales down on double-digit decline in comps

By

Benjamin Fitzgerald

Published
Jun 9, 2023

Designer Brands announced on Thursday revenues for the first quarter fell 10.7% to $742.1 million, on the back of a double-digit decline in comparable sales.

The Columbus, Ohio-based footwear company said comparable sales decreased by 10.4% for the three months ending April 29, with U.S. comp retail sales dropping 11.6% and Canada comp retail sales up 2.9%. Brand portfolio segment comp sales lifted 8.3% for the quarter.

Reported net income attributable to the company was $11.4 million, or diluted earnings per share of $0.17, including net charges of $0.04 per diluted share from adjusted items, primarily related to CEO transition, restructuring, integration, and acquisition costs, partially offset by the valuation allowance change on deferred tax assets. That was compared to a net income of $26.2 million in the prior-year period.

"I am pleased with the quarter we delivered on top of outsized market-leading growth in the first quarter of last year, albeit slightly below our initial expectations," ​said Doug Howe, chief executive officer.

"We have made significant operational progress on our goal of doubling sales of our owned brands by 2026 over 2021 with our recent acquisitions of Keds, Le Tigre, and Topo Athletic helping to further expand and diversify our brand portfolio. We continue to lean further than ever before into our owned brands, harnessing key and exciting moments to showcase our brands with engaging events and customer experiences."