Designer Brands Inc DBI shares are trading lower after the company reported worse-than-expected first-quarter earnings per share.
The company reported first-quarter FY24 sales growth of 0.6% year-on-year to $746.596 million, beating the analyst consensus estimate of $741.630 million. Total comparable sales decreased by 2.5%.
Adjusted EPS of $0.08 missed the analyst consensus estimate of $0.12.
Gross profit margin expanded 80 basis points Y/Y to 32.8%, and the gross profit climbed 3.1% to $245.1 million.
The operating margin was 1.3%, and operating income for the quarter plunged 52.2% to $9.4 million.
The company held $43.4 million in cash and equivalents as of May 4, 2024. The company ended the quarter with inventories of $620.5 million compared to $637.4 million for the same period last year.
The company had a total of 500 U.S. stores and 175 Canadian stores as of May 4, 2024.
Debt totaled $476.1 million at the end of the first quarter versus $390.3 million at the end of the same period last year.
On May 15, 2024, the company’s Board declared a quarterly cash dividend of $0.05 per share of Class A and Class B common shares. The dividend will be paid on June 18 to shareholders of record on June 5.
Outlook Reaffirmed: Designer Brands sees FY24 EPS $0.70 – $0.80 versus the consensus of $0.76.
The company expects FY24 net sales growth to be in low-single digits.
Price Action: DBI, which closed Monday’s trading session up 9.95% at $11.05, is trading lower by 15.8% at $9.31 in premarket at the last check Tuesday.
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