Benzinga·2025-12-09 13:49Core Viewpoint - Designer Brands Inc. reported stronger-than-expected quarterly profit, with adjusted earnings per share of 38 cents, surpassing the analyst consensus estimate of 18 cents [1]. Financial Performance - Quarterly sales amounted to $752.411 million, reflecting a 3.2% year-over-year decline and missing the expected $763.400 million [2]. - Total comparable sales decreased by 2.4% [2]. - Segment performance showed weakness, with U.S. Retail down 0.8%, Canada Retail down 7.5%, and the Brand Portfolio down 8.6% [3]. - Gross profit increased to $339.6 million from $333.8 million a year ago, with gross margin improving to 45.1%, up from 43.0% [3]. - Consolidated operating profit rose 87% year over year to $42.663 million [4]. Cash and Debt Position - The company ended the quarter with cash and equivalents of $51.352 million, while long-term debt decreased to $463.089 million from $529.551 million a year ago [4]. Store Operations - As of November 1, 2025, Designer Brands operates 672 stores across North America, including 497 DSW Designer Shoe Warehouse locations in the U.S. and 175 stores in Canada [5]. Dividend Announcement - A dividend of 5 cents per share for both Class A and Class B common shares will be paid on December 19 to shareholders of record at the close of business on December 5 [5]. Future Outlook - The company expects fiscal year 2025 adjusted operating profit to be between $50 million and $55 million, with net sales projected to decline by 3%-5% [6]. Market Sentiment - Designer Brands has 8.10 million shares sold short, representing 57.07% of its public float, indicating a high level of bearish sentiment among investors [7]. - During premarket trading, Designer Brands shares rose 17.11% to $5.68 [7].