Designer Brands in optimistic mood
The footwear retailer Designer Brands has released its financial results for the first quarter of 2024.
Although the total comparable sales declined by 2.5%, the net sales increased slightly to $746.6 million. The gross profit improved to $245.1 million with a gross margin of 32.8%. The company reported a net income of $0.8 million, including adjusted after-tax charges. Cash and cash equivalents totalled $43.4 million, and the company had $187.8 million available for borrowings. The total debt stood at $476.1 million.
Despite challenges, the company said it was focused on growth through strategic initiatives, customer experience enhancement, and operational efficiency.
Doug Howe, the Chief Executive Officer, expressed his satisfaction with the results for this quarter, stating that they met the company's expectations and are progressing towards returning Designer Brands to growth. He also mentioned the company's outperformance in dollar sales compared to the overall market in the performance, leisure, and kids categories as a testament to the strength of their new strategy.
Mr Howe emphasised the company's commitment to revitalising its assortment, enhancing marketing, and improving both the in-store and digital experience. He also highlighted the company's plans to rationalise costs, streamline operations, and drive greater efficiencies.
Designer Brands has reaffirmed its guidance for 2024 and is optimistic about the future as it enters the summer months.
image - Keds
