Designer Brands clocks fourth-quarter sales dip, but annual sales still up
Designer Brands announced on Thursday net sales for the year 2022 increased 3.7% to $3.3 billion,
with comparable sales up 4.4%, withstanding a single-digit decline in the fourth quarter ended January 28.
The Columbus, Ohio-based footwear company said net sales decreased 7.5% to $760.5 million, on the back of a comparable sales drop of 5.5%.
The owner of DSW and Keds brands said reported net income attributable to Designer Brands was $45.1 million, or diluted earnings per share (EPS) of $0.66 during the three months.
For the year, reported net income was $162.7 million, or diluted EPS of $2.26.
"Our 2022 results clearly showcase the power and success of our brand building strategy with our Owned Brands growing over 32% to last year while delivering gross margins 400 basis points higher than those we saw in 2019," said Roger Rawlins, chief executive officer, Designer Brands.
"These results showcase the successful execution of our strategy. I am incredibly proud of our team and their tireless efforts, and I am excited about what lies ahead for Designer Brands."
For 2023, Designer Brands expects net sales to be down in the mid-single digits with diluted EPS between $1.65 and $1.75. This excludes any contributions from the recently acquired Keds brand, which the company expects to deliver incremental net sales of between $75 million and $85 million in 2023.
"Looking ahead, we are confident in the strength of our business as we work to integrate new and recognizable names into the Designer Brands family, including Keds, Le Tigre, Topo Athletic, and Hush Puppies," said Doug Howe, president of DSW and incoming chief executive officer, Designer Brands.
"Although we are navigating through a volatile environment, we are well-positioned to offer great value and a diverse assortment of product to our customers as we head into 2023. We will continue to be prudent in managing our expenses and inventory and drive growth in our portfolio of increasingly diversified Owned Brands."
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