Designer Brands sales lift on strong comps, D2C and wholesale
Designer Brands Inc. announced on Wednesday revenues for the second quarter ending July 30 increased by more than 5%, on the back of continued strength in the company's direct-to-consumer and wholesale channels.
The Columbus, Ohio-based company said net sales increased 5.1% to $859.3 million, while comparable sales increased 6.2%. Direct-to-consumer sales for the company's owned brand segment grew to $155.7 million, from $107.6 million, while wholesale registered at $39.1 million, up from $31.2 million.
U.S. retail sales totalled $734.1 million, up 1.5%, while Canada retail sales were up 35.9% to $78.3 million. Brand portfolio sales were 31.5% to $66.4 million, the footwear company added.
Reported net income was $46.2 million, or diluted earnings per share of $0.62 for the quarter, compared to $42.9 million, or diluted earnings per share of $0.55 in the same quarter last year.
"Our second quarter was a continuation of the strength we have seen in both our direct-to-consumer and wholesale channels and we were pleased with our topline results. We are seeing this trend continue into the third quarter as our back-to-school season, a new holiday period for Designer Brands, has been performing well, supported by an increased assortment of athletic and kid's products," said Roger Rawlins, chief executive officer.
"We continue to successfully execute against our long-term plan to double sales of our owned brands by 2026 while maintaining sales of our top national brand partners. The recent addition of Le Tigre to our portfolio of brands, coupled with our recently announced partnership with Reebok, supports our plan to build a very relevant and highly demanded owned brands assortment... As we look forward, we are well-positioned for the back half of the year and are confident in our ability to deliver our updated 2022 guidance."
Looking ahead, Designer Brands said it still expects full-year comparable sales to be in the mid-single digits for percentage growth, but it now expects diluted earnings per share of $2.05 - $2.15, compared to its prior forecast of $1.90 - $2.00 per share.
Copyright © 2023 FashionNetwork.com All rights reserved.