Why Shares Of Designer Brands Are Trading Higher

Designer Brands Inc. DBI shares are up Thursday after the company announced a buyback of up to $100 million, offsetting weak earnings and a guidance cut. 

What To Know: The company announced that it has begun a modified "Dutch Auction" tender offer to repurchase up to $100 million of shares at a price of no less than $7 per share and no more than $8 per share.

The company reported adjusted quarterly earnings of 21 cents per share, missing the analyst consensus estimate of 23 cents per share. This represents a 56.25% decrease over earnings of 48 cents per share from the same quarter last year.

Quarterly sales of $742.08 million also missed the analyst consensus estimate of $754.28 million, representing a 10.65% decrease over sales of $830.54 million the same quarter last year.

Designer Brands lowered fiscal year 2023 earnings per share guidance to a range between $1.20 and $1.50, versus estimates of $1.64. Guidance was previously $1.65 to $1.75 per share.

CEO Doug Howe remained positive, saying, "I am pleased with the quarter we delivered on top of outsized market-leading growth in the first quarter of last year, albeit slightly below our initial expectations. We have made significant operational progress on our goal of doubling sales of our Owned Brands by 2026 over 2021 with our recent acquisitions of Keds, Le Tigre, and Topo Athletic helping to further expand and diversify our brand portfolio."

Telsey Advisory Group analyst Dana Telsey reiterated Designer Brands with a Market Perform and maintained an $8 price target.

Related Link: Why Carvana (CVNA) Shares Are Popping Thursday

DBI Price Action: Shares of DBI were up 21.1% at $8.73 at the time of publication, according to Benzinga Pro.

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