Designer Brands misses revenue and profit mark but stock edges up

Designer Brands Inc. stock (DBI) rose by 1.3% after CEO Doug Howe said he was pleased with the footwear retailer's first-quarter results, although the company missed its profit and revenue targets and lowered its earnings view for the year as it absorbs its acquisition of Keds sneakers. Designer Brands said its first-quarter profit fell to $11.42 million, or 17 cents a share, from $26.18 million, or 34 cents a share, in the year-ago quarter. Adjusted profit of 21 cents a share missed the analyst target of 23 cents a share in a survey by FactSet. Revenue dropped to 10.7% to $742.1 million, short of the analyst mark of $752.1 million. Designer Brands cut its 2023 profit view excluding the impact from its Keds purchase to a range of $1.20 a share to $1.50 a share, from its earlier view of $1.65 to $1.75 a share, compared to the analyst estimate of $1.56 a share.

-Steve Gelsi

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06-08-23 0701ET

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