MW DSW parent Designer Brands misses Q3 earnings estimates and lowers profit guidance

Designer Brands Inc. , parent of the DSW Designer Shoe Warehouse and The Shoe Company, posted weaker-than-expected third-quarter earnings on Thursday, and lowered its full-year guidance . The company had net income of $45.2 million, or 65 cents a share, for the quarter, down from $80.2 million, or $1.04 a share, in the year-earlier period. Adjusted per-share earnings came to 67 cents, below the 72 cent FactSet consensus. Sales edged up to $865.0 million from $853.5 million a year ago, also below the $877.0 million FactSet consensus. Same-store sales were up 3%, while FactSet was looking for a 2.4% rise. "While we are seeing many of the same pressures across the consumer landscape that most retailers are seeing, our flexible business model continues to support our efforts to navigate a dynamic macro environment," Chief Executive Roger Rawlins said in a statement. The company ended the quarter with more 'normalized' inventory levels of $681.8 million, compared with $602.1 million a year ago. Retailers have been struggling with high inventory levels that have made it difficult to clear the way for fresh products. Designer Brands lowered its full-year EPS guidance to a range of $1.75 to $1.80 from a prior range of $2.05 to $2.15. It still expects full-year same-store sales to climb in the mid-single digits. Shares were slightly lower premarket but have gained 7.7% in the year to date, while the S&P 500 has fallen 14%.

-Ciara Linnane

(END) Dow Jones Newswires

December 01, 2022 07:02 ET (12:02 GMT)

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