New businesses drive growth at Designer Brands
Columbus, Ohio-based footwear and accessories group Designer Brands Inc. announced on Thursday that it saw an 8.2% increase in revenue in the second quarter, as the businesses that the company acquired in fiscal 2018 gave its sales a boost.
In the second quarter ended August 3, 2019, Designer Brands reported $860.6 million in total revenues, up from $793.7 million in the prior-year period, with $102.9 million of Q2 2019’s total being accounted for by the company’s new brand portfolio segment.
The retailer’s comparable sales, on the other hand, posted a decrease of 0.6%.
Reported quarterly net income came to $27.4 million, or $0.37 per diluted share, a significant improvement from the loss of $38.4 million, or $0.48 per diluted share, reported by the company in Q2 2018.
“I am proud of the work our teams have done, not only delivering a solid quarter, but also successfully integrating two significant acquisitions and leveraging the unique strength of each of our businesses to give Designer Brands greater control and flexibility in setting our own destiny in a world full of extraordinary external pressures,” said Designer Brands CEO Roger Rawlins in a release.
“Each segment delivered what was needed this quarter, but our newest businesses really stood out, exceeding our expectations and moving us closer to the vision laid out at our Investor Day,” he added.
In the first six months of fiscal 2019, Designer Brands’ revenue rose 15.3%, including a $207.5 million contribution from its brand portfolio segment, totaling $1.72 billion, compared to $1.50 billion in the same period in the previous year. Comparable sales rose 1.1%.
For the first half of the year, net income totaled $58.6 million, or $0.77 per diluted share, up from a loss of $14.1 million, or $0.18 per diluted share.
Designer Brands, which acquired the Camuto Group in November of last year, through a joint venture with Authentic Brands Group, currently operates close to 1,000 retail locations in North America under the DSW Designer Shoe Warehouse, The Shoe Company and Shoe Warehouse banners.
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