Designer Brands(DBI) ZACKS·2024-09-12 12:26Core Insights - Designer Brands Inc. (DBI) reported second-quarter fiscal 2024 results that fell short of Zacks Consensus Estimates for both earnings and sales, with year-over-year declines noted [1][3][12] Financial Performance - Adjusted earnings were 29 cents per share, missing the Zacks Consensus Estimate of 56 cents, and down from 59 cents in the prior year [3] - Net sales totaled 819 million [3] - Comparable sales (comps) decreased by 1.4% year over year, compared to an expected decline of nearly 3.7% [3] Margins and Expenses - Gross profit was 273.4 million in the previous year, with a gross margin decrease of 170 basis points to 32.8% [4] - The decline in gross margin was attributed to lower initial markups on athletic and athleisure products and the need for promotions to clear seasonal inventory [5] - Adjusted SG&A expenses as a percentage of net sales rose to 28.9%, up 200 basis points from 26.9% in the same quarter last year, primarily due to lower sales and higher fixed costs [6] Segment Performance - U.S. Retail segment sales decreased by 2.6% year over year to 652 million [7] - Canada Retail segment sales increased by 6.4% year over year to 86 million [7] - Brand Portfolio segment sales were 121 million [8] Financial Snapshot - Cash and cash equivalents were reported at 46.2 million a year ago, with 465.7 million, compared to 642.8 million from 18 million during the second quarter, with $69.7 million remaining for future repurchases [10] Store Updates - One store was closed in the U.S. while two were opened in Canada, resulting in a total of 499 U.S. stores and 177 Canadian stores as of August 3, 2024 [11] Guidance - The company revised its financial outlook for fiscal 2024, now expecting flat to low-single-digit sales growth, down from initial projections of low-single-digit growth [12] - Adjusted earnings per share guidance was lowered to a range of 50-60 cents, down from the previous range of 70-80 cents [12]