DSW parent Designer Brands' stock rallies after profit, sales fall but beat expectations

Shares of Designer Brands Inc. (DBI) rallied 3.6% in premarket trading, after the parent of the DSW shoe retailer reported fiscal second-quarter profit that beat expectations and affirmed its full-year outlook. Net income for the quarter to July 29 fell to $37.2 million, or 56 cents a share, from $46.2 million, or 62 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to 59 cents, which beat the FactSet consensus of 44 cents. Net sales declined 7.8% to $792.2 million but were above the FactSet consensus of $787.9 million. Same-store sales fell 8.9%, missing the FactSet consensus of a 6.9% decline, as sales in the U.S. retail segment dropped 9.2% and in the Canada retail segment were down 7.3%. For fiscal 2023, the company said it expects near-term headwinds to persist, but it kept its 2023 EPS guidance range at $1.20 to $1.50. The stock has soared 44% over the past three months through Wednesday, while the S&P 500 has gained 4.6%.

-Tomi Kilgore

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09-07-23 0705ET

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