Designer Brands Inc. reported a mixed holiday quarter with its first positive comparative sales gain in nine quarters, even as revenue missed analysts’ expectations and its loss grew.
The footwear giant and parent company of DSW reported a net loss $38.2 million, or loss per share of $0.80, for the quarter ended Feb. 1, compared to a loss of $29.7 million, or a loss per share of $0.52 per share, in the year-ago period. The adjusted net loss was $21.3 million, or loss per share of $0.44. Analysts had expected a loss of $0.49 per share.
Net sales decreased 5.4% to $713.6 million, below estimates. Total comparable sales were up 0.5% compared a 7.3% decline in the previous year
“Positive comparable sales in the fourth quarter reflect a return to growth for the first time in nine quarters, highlighting the success of our strategic initiatives throughout the year,” stated CEO Doug Howe. “This year’s achievements are a direct result of our decisive actions and commitment to refresh and strengthen our leadership, revitalize and modernize our assortment, refine our marketing strategies, right size our brand portfolio, and elevate our customers’ omnichannel experience.”
With regard to 2025, Howe expressed confidence that the company’s ongoing business transformation will drive continued stability and growth, with expectations to significantly increase earnings per share compared to its 2024 adjusted results.
“We anticipate our reinvigorated efforts to be customer-first and product obsessed will help us better understand our customers and strengthen our product offerings through a data-driven approach,” he said. “Although we do see pressure on the consumer in the short term as a result of ongoing inflation, rising prices and less discretionary income, we believe these initiatives will drive improved financial performance through 2025 and continue to position us well for long-term, sustainable growth.”
For the full year, net sales decreased 2.1% to $3.0 billion. Total comparable sales fell 1.7%.
As of Feb.1, the company had more than 650 stores operating under the DSW Designer Shoe Warehouse, The Shoe Co., and Rubino banners in North America, with 494 stores in the U.S. and 175 stores in Canada.
https://chainstoreage.com/designer-warehouse-reports-mixed-q4