On June 4, 2024, Designer Brands Inc (DBI, Financial) released its 8-K filing reporting financial results for the first quarter of 2024. Designer Brands Inc is a designer, producer, and retailer of footwear and accessories, operating through three segments: U.S. Retail, Canada Retail, and Brand Portfolio.
Performance Overview
Designer Brands Inc reported net sales of $746.6 million for Q1 2024, a 0.6% increase compared to the same period last year, surpassing the analyst estimate of $741.63 million. However, the company reported a diluted earnings per share (EPS) of $0.01, falling short of the analyst estimate of $0.16.
Despite the mixed results, CEO Doug Howe expressed optimism about the company's strategic direction, stating, "This quarter, we were pleased to deliver results in line with our expectations for this quarter, as we gain traction on our path to returning Designer Brands to growth."
Key Financial Metrics
Gross profit for the quarter increased to $245.1 million from $237.7 million in the previous year, with a gross margin of 32.8%, up from 32.0%. The increase in gross profit was primarily driven by the Brand Portfolio segment.
| Metric | Q1 2024 | Q1 2023 | Change |
|---|---|---|---|
| Net Sales | $746.6 million | $742.1 million | 0.6% |
| Gross Profit | $245.1 million | $237.7 million | 3.1% |
| Gross Margin | 32.8% | 32.0% | 80 bps |
| Net Income | $0.8 million | $4.8 million | -83.3% |
| Diluted EPS | $0.01 | $0.08 | -87.5% |
Segment Performance
The U.S. Retail segment reported net sales of $621.4 million, a 1.4% increase from the previous year. The Canada Retail segment saw a 2.9% increase in net sales to $55.5 million. The Brand Portfolio segment experienced a significant 12.0% increase in net sales to $104.1 million.
Liquidity and Dividend
Designer Brands Inc ended the quarter with $43.4 million in cash and cash equivalents, down from $50.6 million at the same time last year. The company declared a quarterly cash dividend of $0.05 per share, payable on June 18, 2024.
Store Openings and Closings
During Q1 2024, Designer Brands Inc opened one store in the U.S. and acquired 28 Rubino stores in Canada, bringing the total to 500 stores in the U.S. and 175 stores in Canada.
Reaffirming 2024 Financial Outlook
The company reaffirmed its full-year 2024 guidance, expecting net sales growth in the low-single digits and adjusted diluted EPS between $0.70 and $0.80.
Moving forward, we will continue to prioritize our strategic commitments to revitalize our assortment, elevate marketing, and enhance the in-store and digital experience," said CEO Doug Howe.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Designer Brands Inc for further details.
