Designer Brands Inc. Reports Fourth Quarter and Fiscal Year 2024 Financial Results

Core Insights - Designer Brands Inc. reported financial results for the year ended February 1, 2025, with a focus on strategic initiatives that led to positive comparable sales for the first time in nine quarters [2][5] - The company anticipates profitable growth in fiscal 2025, projecting an increase in earnings per share (EPS) compared to 2024 adjusted results [2][4] Financial Performance - For the fourth quarter of 2024, net sales decreased by 5.4% to $713.6 million, while total comparable sales increased by 0.5% [5][11] - Gross profit for the fourth quarter was $282.6 million, with a gross margin of 39.6%, compared to $292.6 million and 38.8% in the previous year [5][11] - The reported net loss attributable to Designer Brands Inc. was $38.2 million, or a loss per diluted share of $0.80, while the adjusted net loss was $21.3 million, or $0.44 loss per diluted share [5][11] Store Count and Operations - As of February 1, 2025, the total number of stores was 669, with 494 in the U.S. and 175 in Canada, reflecting a slight reduction in store count [3][11] - The company closed two stores in the U.S. and four in Canada during the fourth quarter of 2024 [3] 2025 Financial Outlook - The company has provided guidance for 2025, expecting low-single-digit net sales growth and diluted EPS in the range of $0.30 to $0.50 [4] - The ongoing business transformation is expected to drive stability and growth, despite short-term consumer pressures from inflation and rising prices [2][4] Segment Performance - In the fourth quarter, U.S. Retail segment net sales were $587.5 million, down 6.9% from the previous year, while Canada Retail segment net sales increased by 7.5% to $69.2 million [11][12] - The Brand Portfolio segment saw a 12.3% increase in net sales, reaching $87.3 million [11][12] Liquidity and Return to Shareholders - Cash and cash equivalents totaled $44.8 million at the end of 2024, down from $49.2 million at the end of 2023, with total debt increasing to $491.0 million [5][11] - The company repurchased 10.3 million Class A common shares for $68.6 million during 2024, with $19.7 million remaining for future repurchases [5][11]