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The total comparable sales of the company declined 5 per cent in Q2. The gross profit fell to $322.9 million, with gross margin slipping slightly to 43.7 per cent. The net income attributable to Designer Brands was $10.8 million, or diluted earnings per share (EPS) of $0.22, while adjusted net income stood at $16.7 million, or adjusted diluted EPS of $0.34.<\/p>\n
Designer Brands Inc has reported net sales of $739.8 million in Q2 FY25, down 4.2 per cent YoY, with comparable sales declining 5 per cent.
\nNet income was $10.8 million, while adjusted EPS stood at $0.34.
\nUS sales fell 4.8 per cent, Canada rose 0.4 per cent, and brand portfolio plunged 23.8 per cent.
\nOperating 668 stores, the company withheld its FY25 guidance. <\/p>\n
The cash and cash equivalents rose to $44.9 million. The company also reported $104.3 million available under its senior secured revolving credit facility. Debt increased to $516.3 million. Inventories decreased to $610.9 million, Designer Brands Inc said in a press release.<\/p>\n
Region-wise, US retail net sales fell 4.8 per cent to $610.9 million, with comparable sales declining 4.9 per cent. In contrast, the Canada retail segment posted a modest 0.4 per cent increase in net sales to $75.1 million, though comparable sales edged down 0.6 per cent.<\/p>\n
The brand portfolio segment faced significant pressure in Q2 FY25, with sales plunging 23.8 per cent to $73.2 million. Comparable direct-to-consumer (DTC) sales were hit particularly hard, dropping 29.2 per cent.<\/p>\n
\u201cOur second quarter results were highlighted by a 280-basis point sequential improvement in comparable sales from the first quarter, underscoring the impact of our targeted operational initiatives,\u201d said Doug Howe,<\/em><\/strong> chief executive officer (CEO) at Designer Brands Inc.<\/em><\/strong> \u201cThese initiatives supported a strong start to the back-to-school season within the US retail segment as well as gradual improvements in traffic and a notable uptick in conversion.\u201d<\/p>\n \u201cWe anticipate our ongoing efforts to strengthen our brand, drive awareness through investments in marketing, and optimise our omni-channel model will continue to support our transformation,\u201d added Howe.<\/p>\n For the first six months of FY25, consolidated net sales were $1.43 billion, down 6 per cent YoY, and the gross profit for the half-year declined 7.7 per cent to $618.1 million.<\/p>\n Designer Brands operated 668 stores with a total square footage of 10.96 million, compared to 676 stores and 11.17 million square feet a year earlier. The US retail segment included 493 DSW stores, while Canada housed 175 stores under The Shoe Co, Rubino, and DSW banners, added the release.<\/p>\n Due to macroeconomic uncertainty stemming primarily from global trade policies, the company has elected not to reinstate full year 2025 guidance.<\/p>\n \u201cWhile consumer sentiment has ticked up slightly, given the ongoing macroeconomic volatility with recent extended tariff increases and caution in discretionary spending, there is still a notable amount of uncertainty. That said, we remain committed to disciplined execution in those areas within our control as we navigate the near-term environment while continuing to build a stronger, more sustainable business for the future,\u201d said Howe.<\/p>\n
<\/p>\n Fibre2Fashion News Desk (SG) <\/p>\n
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