Q1 2024 Designer Brands Inc Earnings Call Transcript
Key Points
- Sales were up almost 1% versus last year, indicating a positive trend.
- Gross margins expanded by 80 basis points to 32.8%, driven by strong inventory management and DTC growth.
- US retail sales increased by 1.4% year-over-year, showing progress in strategic initiatives.
- Athletic and casual categories outperformed, with athletic sales up 15%, indicating strong consumer demand.
- The acquisition of Rubino is expected to be immediately accretive, expanding DBI's presence in Quebec.
- Comparable sales declined by 2.5%, indicating some challenges in maintaining customer engagement.
- Seasonal footwear and dress categories experienced softness, with dress posting a negative 7% comp year-over-year.
- SG&A expenses increased to 31.2% of sales from 28.9% in the prior year, indicating higher operational costs.
- Net interest expense rose to $11.6 million from $6.6 million in the prior year, impacting net income.
- Canada retail segment comps were down 4.9%, reflecting reduced consumer discretionary spending.
Good morning, and welcome to the Designer Brands first quarter 2024 results conference call. (Operator Instructions) Please note, this event is being recorded. I'd now like to turn the conference over to Dustin Hauenstein, Senior Vice President of Finance. Please go ahead.
Good morning. Earlier today, the company issued a press release comparing results of operations for the 13-week period ended May 4, 2024, to the 13-week period ended April 29, 2023. Please note that the financial results that we will be referencing during the remainder of today's call exclude certain adjustments recorded under GAAP unless specified otherwise. For a complete reconciliation of GAAP to adjusted earnings, please reference our press release.
Additionally, please note that remarks made about future expectations, plans and prospects of the company constitutes forward-looking statements. Results may differ materially due to the various factors listed in today's press release and the company's public filings with the SEC.
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