Designer Brands, Inc. shares were under pressure in pre-market trading on Tuesday after the parent company of DSW, Keds and Topo Athletic reported that fiscal third-quarter net sales decreased 9.1 percent year-over-year (YoY) to $786.3 million in the three-month period ended October 28. Total comparable sales decreased by 9.3 percent YoY for the period.
Gross profit decreased to $256.4 million from $285.8 million in fiscal Q3 last year, and gross margin was 32.6 percent was down 40 basis points from 33.0 percent in the corresponding period last year.
Reported net income attributable to Designer Brands, Inc. was $10.1 million, or diluted earnings per share 17 cents a share, including net after-tax charges of 7 cents per diluted share from adjusted items, primarily related to restructuring, integration, and CEO transition costs as well as valuation allowance change on deferred tax assets.
Adjusted net income was $14.8 million for the period, or adjusted diluted EPS of 24 cents per share.
For more details about Designer Brands’ third quarter, including details about the DSW, Topo Athletic and Vince Camuto businesses and the status of Nike’s transition back into DSW and the addition of Under Armour for 2024, read more here: