By Denny Jacob
Designer Brands said its sales fell in the third quarter and cut its outlook for the year as unfavorable weather and economic uncertainty reduced consumer spending, sending shares sharply lower.
The owner of the DSW shoestore chain Tuesday reported net income of $13 million, or 24 cents a share, for the quarter ended Nov. 2, up from $10.1 million, or 17 cents a share, a year earlier.
Stripping out one-time items, earnings came in at 27 cents a share, below the 46 cents expected by analysts polled by FactSet.
Sales declined 1.2% to $777.2 million from $786.3 million. Analysts forecast $802.1 million. Comparable sales fell 3.1% for the quarter.
Shares of the Columbus, Ohio, company dived 19% to $4.69 in premarket trading Tuesday.
Chief Executive Doug Howe said third-quarter results were bolstered by back-to-school season and success with athletic and athleisure offerings. But unseasonably warm weather going into the fall and ongoing macroeconomic uncertainty crimped consumers' spending, specifically in its seasonal category, he added.
Designer Brands now expects 2024 sales to fall by a low single-digit percentage, and for adjusted earnings to come in between 10 cents and 30 cents a share. It previously guided for sales to be flat or grow by a low single-digit percentage, and for adjusted per-share earnings to come in between 50 cents and 60 cents.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
December 10, 2024 07:24 ET (12:24 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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