Designer Brands Q3 comparable sales drop by 3.1 percent

Third quarter net sales at Designer Brands decreased by 1.2 percent to 777.2 million dollars, while total comparable sales decreased by 3.1 percent.

The company has lowered its guidance for the full year and now expects net sales to be down low single digits and adjusted diluted EPS in the range of 10 cents to 30 cents.

Designer Brands’ gross profit decreased to 247.4 million dollars during the quarter under review and gross profit as a percentage of net sales was 31.8 percent.

Reported net income for the third quarter was 13 million dollars or diluted earnings per share (EPS) of 24 cents and adjusted net income was 14.5 million dollars or adjusted diluted EPS of 27 cents.

The company declared a dividend of 5 cents per share for both Class A and Class B common shares, which will be paid on December 20, 2024 to shareholders of record at the close of business on December 6, 2024.

During the third quarter, the company closed three stores in the United States and opened two stores in Canada, resulting in a total of 496 stores in the US and 179 stores in Canada as of November 2, 2024.