Overview
Designer Brands Q3 revenue fell 3.2% year-over-year
Adjusted EPS rose over 40% year-over-year
Gross margin improved by 210 basis points
Outlook
Designer Brands expects fiscal 2025 net sales to decline by 3% to 5%
Company projects fiscal 2025 adjusted operating profit of $50 mln to $55 mln
Designer Brands anticipates fiscal 2025 adjusted income tax expense of $8 mln to $10 mln
Result Drivers
CONSUMER DEMAND - Stronger consumer demand and improved in-store execution drove better comparable sales compared to Q2
GROSS PROFIT INCREASE - Co achieved meaningful increase in gross profit and managed expenses, boosting operating income
STRATEGIC INITIATIVES - Positive momentum from strategic initiatives extended into early Q4, per CEO Doug Howe
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | $752.40 mln | ||
Q3 Adjusted EPS | $0.38 | ||
Q3 EPS | $0.35 | ||
Q3 Adjusted Net Income | $19.60 mln | ||
Q3 Net Income | $18.20 mln | ||
Q3 Gross Profit | $339.60 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the apparel & accessories retailers peer group is "buy."
Wall Street's median 12-month price target for Designer Brands Inc is $4.75, about 2.1% below its December 8 closing price of $4.85
Press Release: ID:nPn1w5571a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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