NEW YORK - Designer Brands Inc. (NYSE:DBI) shares plunged 21% in early trading Tuesday after the footwear retailer reported third quarter earnings that fell short of expectations and significantly lowered its full-year outlook.
The parent company of DSW Designer Shoe Warehouse posted adjusted earnings per share of $0.27 for the quarter ended November 2, missing the analyst consensus of $0.38. Revenue declined 1.2% YoY to $777.2 million, well below estimates of $825.59 million.
Comparable sales decreased 3.1% in Q3, with CEO Doug Howe citing "unseasonably warm weather and ongoing macroeconomic uncertainty placing pressure on consumer discretionary spending, specifically in our seasonal category."
In light of the challenging environment, Designer Brands slashed its fiscal 2024 earnings guidance to $0.10-$0.30 per share, down sharply from its prior outlook of $0.50-$0.60. The company now expects full-year sales to decline in the low single digits, compared to previous expectations for flat to low single digit growth.
"Although external challenges have persisted, I am encouraged by how effectively our business has stayed aligned with our strategic priorities and executing on the things within our control," Howe stated.
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