Designer Brands has reported a 10.7 percent decrease in net sales to 742.1 million dollars in the first quarter, while comparable sales decreased by 10.4 percent.
The company said gross profit fell to 237.7 million dollars from 275.7 million dollars and gross margin was 32 percent compared to 33.2 percent for the same period last year.
Reported net income was 11.4 million dollars, down from 26.2 million dollars, while adjusted net income was 14.3 million dollars, down from 36.7 million dollars.
Commenting on the first quarter results, Doug Howe, the company’s chief executive officer, stated: “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.
“As the consumer remains cautious, we are approaching the remainder of the year and the trajectory of the recovery in our business with heightened consideration.”
For the full year 2023, the company expects net sales growth excluding Keds to decline mid to high single digits, and diluted EPS to range between 1.20 dollars to 1.50 dollars. The company expects Keds to contribute 75 million dollars to 85 million dollars to the total revenue.
During the first quarter, the company closed two stores in the US and opened one new store in Canada, resulting in a total of 499 US stores and 139 Canadian stores as of April 29, 2023.