Designer Brands Q1 sales up on all fronts
Designer Brands announced on Thursday revenues for the first quarter surged by almost 20%, as the U.S. footwear company witnessed sales increases across all channels and brand segments.
The Columbus, Ohio-based owner of the DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse retail chains said total revenues for the first quarter ending April 30 rose 18.1% to $830.5 million, fuelled by a comparable sales gain of 15.3%.
By retail channel, the company said U.S. retail sales gained 13.2% to $702.7 million, while its Canadian retail sales increased 38.7% to $56.3 million during the quarter. The company's brand portfolio segment rose 69.7% to $97.5 million, adding it successfully relaunched its Vince Camuto brand, which witness an 80% uptick in revenues for the three months.
Net income for the first quarter increased to $26.18 million, compared to $17.03 million in the prior-year quarter. Diluted earnings per share were $0.34, compared to diluted earnings per share of $0.22 last year.
Speaking on the results, Roger Rawlins, chief executive officer, Designer Brands, said his company saw "robust growth" in its 'Owned Brands' category in the quarter, both through direct-to-consumer and wholesale channels, adding he believes the company is "on a great trajectory to achieve our goal of doubling our 'Owned Brand' sales by 2026."
"Our strong first quarter 2022 results demonstrate the progress we are making towards our long-range plan that we outlined at our recent investor day. In addition, we are further building our relationships with our top national brands, and our new prototype warehouse reimagined store, which opened in May, brings to bear a wealth of capabilities and opportunities that will help us to strengthen these relationships and provide a more seamless omnichannel experience for our customers," said Rawlins.
"In an increasingly direct-to-consumer world, we continue to acquire opportunities to meet customers at a range of touchpoints. Most recently, this includes our partnership with Wolverine and the Hush Puppies brand, our partnership with ABG and the Reebok brand, and our purchase of the 'shoes.com' digital domain. These are just a few ways Designer Brands is reaching new customers, partnering differently with our national brand partners and leveraging new distribution channels that will enable us to deliver long-term shareholder growth," Rawlins continued.
Looking ahead, Designer Brands' full year earnings are now expected to be in the range of $1.90 to $2.00 a share, up from previous guidance in the range of $1.80 and $.90. Comparable store growth is now projected to be up mid-single digits, down from previous guidance calling for high-single digits.
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