Designer Brands(DBI) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for the third quarter of 2024 decreased by 1.2% to $777.2 million compared to the same period last year[4]. - Total comparable sales declined by 3.1% for the quarter[5]. - Gross profit decreased to $247.4 million, with gross profit as a percentage of net sales at 31.8%, down from 32.6% last year[6]. - Reported net income attributable to Designer Brands Inc. was $13.0 million, or diluted earnings per share (EPS) of $0.24[6]. - Adjusted net income was $14.5 million, or adjusted diluted EPS of $0.27[7]. - Total net sales for the three months ended November 2, 2024, reached $777,194,000, a decrease from $786,329,000 for the same period last year, reflecting a decline of 3.1%[21]. - For the nine months ended November 2, 2024, total net sales were $2,295,690,000, compared to $2,320,628,000 for the same period last year, a decrease of 1.1%[25]. - Net sales for the three months ended November 2, 2024, were $777.194 million, a decrease of 1.4% from $786.329 million for the same period last year[27]. - Gross profit for the three months ended November 2, 2024, was $247.445 million, down 3.4% from $256.406 million in the prior year[27]. - Operating profit decreased to $22.816 million for the three months ended November 2, 2024, compared to $28.121 million for the same period last year, representing a decline of 18.9%[27]. - Net income attributable to Designer Brands Inc. was $13.012 million for the three months ended November 2, 2024, an increase of 28.3% from $10.141 million in the prior year[27]. - Diluted earnings per share increased to $0.24 for the three months ended November 2, 2024, compared to $0.17 for the same period last year, reflecting a growth of 41.2%[27]. Inventory and Cash Position - Cash and cash equivalents totaled $36.2 million at the end of the third quarter, down from $54.6 million at the same time last year[8]. - The company ended the third quarter with inventories of $637.0 million, compared to $601.5 million last year[9]. - Total current assets as of November 2, 2024, were $800.673 million, an increase of 2.0% from $799.809 million as of October 28, 2023[29]. - The company reported impairment charges of $17.756 million for the three months ended November 2, 2024, compared to no impairment charges in the same period last year[27]. Store Operations - The company closed three stores in the U.S. and opened two stores in Canada, resulting in a total of 496 stores in the U.S. and 179 stores in Canada as of November 2, 2024[11]. - The total number of stores increased to 675 as of November 2, 2024, from 643 stores as of October 28, 2023, indicating a growth in physical retail presence[24]. Sales by Segment - Direct-to-consumer sales for owned brands amounted to $130,753,000 for the three months ended November 2, 2024, compared to $154,201,000 for the same period last year, representing a decrease of 15.1%[22]. - The U.S. Retail segment experienced a comparable sales decline of 2.8% for the three months ended November 2, 2024, compared to a decline of 9.8% for the same period last year[24]. - The Canada Retail segment reported a comparable sales decline of 4.6% for the three months ended November 2, 2024, compared to a decline of 7.7% for the same period last year[24]. - Owned brands' total sales for the nine months ended November 2, 2024, were $611,634,000, compared to $611,634,000 for the same period last year, indicating stable performance[21]. Financial Outlook - The updated financial outlook for 2024 indicates net sales growth is now expected to be down low single digits, and adjusted diluted EPS is projected to be between $0.10 and $0.30[12]. - Adjusted operating profit for the three months ended November 2, 2024, was $43.590 million, compared to $31.402 million in the prior year, marking a significant increase of 38.7%[31]. Other Financial Metrics - Total liabilities increased to $1.758986 billion as of November 2, 2024, compared to $1.713724 billion as of October 28, 2023, indicating a rise of 2.6%[29]. - The company’s total assets as of November 2, 2024, were $2.080764 billion, a slight increase from $2.076232 billion as of October 28, 2023[29]. Future Considerations - Comparable sales for the Canada Retail segment will exclude the impact of foreign currency translation and will be calculated using the prior year's exchange rate[34]. - Stores from the Rubino acquisition that have been operational for at least 14 months will be included in the comparable base starting Q2 2025[34]. - E-commerce net sales from the Brand Portfolio segment will be included in the calculation of comparable sales[34].