Designer Brands stock falls 10% on Q4 loss despite revenue beat By Investing.com

© Reuters.

COLUMBUS, Ohio – Designer Brands Inc. (NYSE:) reported a fourth-quarter loss that was narrower than analysts had expected, even as the company’s revenue slightly exceeded market estimates.

The footwear and accessories retailer posted an adjusted net loss of $25.3 million, or -$0.44 per diluted share, for the quarter, which was less than the consensus estimate of a -$0.50 per share loss. Revenue for the quarter was $754.3 million, surpassing the analyst forecast of $745.6 million.

Despite the revenue beat, the company’s stock plunged over 10% in premarket trading, signaling investor concerns. The fourth quarter saw a 0.8% decrease in net sales compared to the same period last year, with total comparable sales declining by 7.3%. Gross profit also fell to $207.4 million from $222.0 million in the previous year, with gross margin dropping from 29.2% to 27.5%.

CEO Doug Howe commented on the company’s performance, stating, “We ended the year strong, with a solid finish to the fourth quarter above the top end of our revised EPS guidance range.” Howe attributed the quarterly results to the strength in their brand portfolio segment, citing recent acquisitions and launches. However, he acknowledged the challenges faced in 2023, including a softening footwear market and unseasonably warm weather affecting seasonal footwear sales.

Looking ahead to fiscal 2025, Designer Brands expects a return to growth and has issued guidance for diluted EPS in the range of $0.70 to $0.80, which is above the analyst consensus of $0.66. The company’s focus for the upcoming year includes refreshing its product assortment, enhancing the shopping experience across channels, and executing operational improvements.

The company’s full-year performance also reflected the challenging environment, with net sales decreasing by 7.3% to $3.1 billion and total comparable sales down by 9.0%. The reported net income for the year was $29.1 million, or $0.46 per diluted share, including adjustments primarily related to restructuring and integration costs, impairment charges, and CEO transition costs.

In addition to its financial results, Designer Brands announced it repurchased 9.7 million Class A common shares for $102.2 million during 2023 and declared a dividend of $0.05 per share to be paid on April 12, 2024, to shareholders of record as of March 29, 2024. The company ended the year with cash and cash equivalents totaling $49.2 million and debt totaling $427.1 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

The post Designer Brands stock falls 10% on Q4 loss despite revenue beat By Investing.com first appeared on Investorempires.com.

 

Eco Wave Power Files its Annual Report on Form 20-F for the Year Ended December 31, 2023, and Announces Significant Progress in Full Year 2023 Financial and Operational Results | Investorempires.com

Read More | The Company Announces 1,076% Revenues Increase, 36% Decrease in Net Loss, an Investment Agreement with a Major Energy Company for its Port of Los Angeles Project, and the Securing of Final License for the Construction of its First Commercial Project in Portugal STOCKHOLM, March 29, 2024 /PRNewswire/ — Eco Wave Power Global […]