Designer Brands Stock Gains After Q3 EPS Beat, Margin Expansion

Designer Brands Inc DBI reported third-quarter FY21 sales growth of 30.7% year-on-year, to $853.47 million, missing the analyst consensus of $897.50 million. Comparable sales increased 40.8% versus last year.
Adjusted EPS of $0.86 beat the analyst consensus of $0.56.
The gross profit margin expanded 1130 basis points Y/Y to 36.7%, and the gross profit jumped 89.3% to $313.9 million.
The operating margin was 12.2%, and operating income for the quarter was $104.3 million.
The company held $83.1 million in cash and equivalents as of October 30, 2021.
The company ended the quarter with inventories of $602.1 million compared to $546.0 million for the same period last year.
Outlook: Designer Brands sees Q4 EPS of $0.10 - $0.15, with the consensus estimate of $0.02.
The company expects Q4 sales to be flat to up low-single digits.
Price Action: DBI shares are trading higher by 9.41% at $14.77 on the last check Tuesday.

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