Designer Brands Raises Full-Year Earnings Guidance Despite Q2 Revenue Decline
Designer Brands Inc. (NYSE:DBI) raised its full-year earnings per share guidance following a second-quarter report that showed adjusted EPS of $0.34, exceeding analyst estimates but with revenue declining 1.2% year on year to $730.6 million. Despite the dip in sales, the company revised its annual outlook for higher profitability and improved gross margins. The footwear retailer now expects full-year diluted adjusted EPS between $0.47 and $0.52, up from a previous range of $0.28 to $0.38. It also raised net sales guidance to flat or 1% growth compared to earlier forecasts of -1% to +1%. CEO Doug Howe highlighted strong gross margin expansion and segment performance in the Brand Portfolio. Designer Brands reported an increase in its adjusted gross margin to 47.9%, up from 43.6% a year ago, while net income reached $0.31 per diluted share on a GAAP basis. The company also announced a dividend of $0.05 per share.
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