NEW YORK - Designer Brands Inc. (NYSE:DBI) reported fourth quarter results that fell short of expectations and provided weaker-than-anticipated guidance, sending shares down 3% in early trading Thursday.
The footwear retailer posted adjusted earnings per share of -$0.44, beating analyst estimates by $0.03. However, revenue of $713.6 million missed the consensus forecast of $723.21 million.
For the full year 2024, Designer Brands delivered adjusted EPS of $0.27, at the high end of its previous guidance range.
Looking ahead, the company expects fiscal 2025 earnings per share between $0.30 and $0.50, below Wall Street’s projection of $0.51. The outlook reflects expectations for "profitable growth" despite near-term consumer pressures.
"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," said CEO Doug Howe.
Fourth quarter comparable sales increased 0.5% YoY, marking the first positive comp in nine quarters. However, net sales declined 5.4% to $713.6 million compared to the prior year period.
The company ended the year with 669 stores, down from 642 at the end of fiscal 2023. Designer Brands repurchased 10.3 million shares for $68.6 million during 2024.
While the return to positive comps is encouraging, the revenue miss and conservative outlook appear to be weighing on investor sentiment in early trading. Management’s strategic initiatives will be key to watch as Designer Brands aims to drive growth in a challenging consumer environment.
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