Sales fall for Designer Brands in second quarter
Credit: Lucky Brand
Meanwhile, total comparable sales fell by 8.9% and gross profit was down by 7.5% to US$273.4 million with a gross margin of 34.5%.
Reported net income attributable to the company totalled US$37.2 million while adjusted net income came in at US$39.4 million.
Designer Brands closed one store in the U.S. and one in Canada during the second quarter, bringing the business to a total of 498 U.S. stores and 138 Canadian stores as of July 29, 2023.
Looking forward to the full 2023 fiscal year, the company is expecting net sales (excluding Keds) to decline in the mid to high single digits.
CEO Doug Howe said: “I am proud of the sequential improvement in both sales and profitability in the second quarter as well as the progress that has been made on our strategic initiatives, with several exciting milestones in the quarter – including new collaborations and celebrity partnerships.
“Our portfolio of Owned Brands and National Brand partners remains strong and we are excited to be rolling out our new athletic and athleisure offerings from Le Tigre and Keds while continuing to elevate our relationship with Nike during a time that athletic and athleisure demand continues to grow.
“The unique synergies between our legacy retail business and our brand portfolio are putting us on a path to being more resilient than ever and we will continue to build out our leadership and structure our teams accordingly. As we look ahead, we do anticipate near-term headwinds will persist, but we are confident in our plans to continue optimising and spotlighting our unparalleled assortment.”