Designer Brands Inc. (NYSE:DBI) shares are trading lower on Tuesday.
The company reported third-quarter adjusted earnings per share of 27 cents, missing the street view of 35 cents.
The company’s third-quarter net sales decreased by 1.2% to $777.2 million, while total comparable sales decreased by 3.1%. Sales missed the analyst consensus estimate of $802.14 million.
“We had a difficult transition into the fall season, with unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category”, said Doug Howe, Chief Executive Officer.
Also Read: Nvidia China Antitrust Probe May ‘Remain Unsolved’ In Near Term Says Top Analyst; Investors Should Be Prepared For Increased Scrutiny
Quarterly gross profit decreased to $247.4 million, down from $256.4 million last year. Gross margin contracted to 31.8%, compared to 32.6% last year.
In the third quarter of 2024, the company closed three stores in the U.S. and opened two stores in Canada. As of November 2, the company had 496 stores in the U.S. and 179 stores in Canada.
In the third quarter of 2024, the company repurchased 7.7 million Class A common shares for $50.6 million. As of November 2, $19.7 million of Class A shares remain available for repurchase.
A dividend of $0.05 per share will be paid on December 20. The dividend will go to shareholders of record on December 6.
Cash and equivalents totaled $36.2 million at the end of the third quarter, down from $54.6 million at the same time last year.
Debt stood at $536.3 million, while inventories reached $637.0 million at the end of the quarter, up from $601.5 million last year.
Outlook: For FY24, the company expects net sales growth to be down low single digits, compared with a prior view of flat to low-single digits.
The company sees adjusted diluted EPS of $0.10 – $0.30 versus the $0.50 estimate (prior view: $0.50 – $0.60).
Price Action: DBI shares are trading lower by 21.1% to $4.57 premarket at last check Tuesday.
Read Next:
免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。