Designer Brands(US:DBI)2025-12-09 13:17Financial Performance - Generated diluted EPS of $0.35 and adjusted diluted EPS of $0.38, both up over 40% compared to the same period last year[1] - Net income attributable to Designer Brands Inc. for the three months ended November 1, 2025, was $18,215, compared to $13,012 in the prior year, reflecting a 40.0% increase[20] - For the three months ended November 1, 2025, the operating profit was $42.663 million, an increase from $22.816 million in the same period last year, representing an 87% growth[24] - The company reported adjusted net income of $19.619 million for the three months ended November 1, 2025, compared to $14.464 million in the same period last year, a 36% increase[24] Sales and Revenue - Net sales decreased 3.2% to $752.4 million, with total comparable sales down by 2.4%[3] - U.S. Retail segment net sales decreased by 0.8% to $610.5 million, while Canada Retail segment net sales decreased by 7.5% to $77.3 million[16] - The Company expects net sales for fiscal 2025 to decline by 3% to 5%[7] - Total net sales for the three months ended November 1, 2025, were $752,411, a decrease of 3.2% from $777,194 in the prior year[20] Profitability Metrics - Gross profit increased to $339.6 million, with a gross margin of 45.1%, up from 43.0% last year[3] - Consolidated gross profit for the three months ended November 1, 2025, was $339,619, representing a 1.7% increase from $333,815 in the same period last year[17] - U.S. Retail segment gross profit increased by $11,251 to $275,635, with a gross profit margin of 45.2%, up from 43.0%[17] - U.S. Retail segment operating profit was $66,202, representing 10.8% of net sales, an increase from 9.8% in the previous year[18] Operating Income - Fiscal 2025 adjusted operating income is expected to be in the range of $50.0 million to $55.0 million[1] - Operating profit for the three months ended November 1, 2025, was $42,663, an increase of 87.0% compared to $22,816 in the same period last year[18] - Total segment operating profit for the nine months ended November 1, 2025, was $188,881, down 18.8% from $232,629 in the same period last year[18] - Adjusted operating profit for the nine months ended November 1, 2025, was $76.286 million, compared to $90.811 million for the same period last year, indicating a decrease of 16%[24] Cash and Liquidity - Cash and cash equivalents totaled $51.4 million at the end of Q3 2025, compared to $36.2 million at the end of the same period last year[8] - Cash and cash equivalents increased to $51,352 as of November 1, 2025, from $36,227 a year earlier[22] - Total liabilities as of November 1, 2025, were $1,750,105, compared to $1,758,986 a year earlier, indicating a slight decrease[22] Inventory and Store Count - Inventories at the end of Q3 2025 were $620.0 million, down from $637.0 million at the end of the same period last year[8] - Total number of stores as of November 1, 2025, was 672, down from 675 stores a year earlier[6] Dividends and Shareholder Returns - A dividend of $0.05 per share will be paid on December 19, 2025, to shareholders of record[5] Non-GAAP Measures - The company emphasizes the importance of non-GAAP financial measures to provide useful information for evaluating operating performance compared to prior periods[26] - Total non-GAAP adjustments for the three months ended November 1, 2025, amounted to $3.830 million before tax effect, compared to $21.034 million in the prior year[24] Restructuring and Impairment - Restructuring and integration costs for the nine months ended November 1, 2025, totaled $9.883 million, slightly down from $10.114 million in the previous year[24] - The company incurred impairment charges of $4.419 million for the nine months ended November 1, 2025, compared to $17.756 million in the same period last year[24] Comparable Sales - Comparable sales performance is a key metric, with sales from stores in operation for at least 14 months included in the calculation, which is crucial for evaluating direct-to-consumer business performance[27]