Designer Brands Q1 Earnings Exceed Expectations; Raises FY22 EPS Outlook

Designer Brands Inc DBI reported first-quarter FY22 sales growth of 18.1% to $830.54 million, beating the consensus of $815.33 million. Comparable sales increased 15.3%.
Adjusted EPS of $0.48 beat the analyst consensus of $0.24.
The gross profit margin expanded 250 basis points Y/Y to 33.2%, and the gross profit jumped 27.6% to $275.7 million.
The operating margin was 6.4%, and operating income for the quarter more than tripled to $53.2 million.
The company held $54.8 million in cash and equivalents as of April 30, 2022.
The company ended the quarter with inventories of $672.5 million compared to $540.1 million for the same period last year.
Outlook: Designer Brands raised FY22 EPS guidance to $1.90 - $2.00 from $1.80 - $1.90, versus the consensus of $1.80.
The company expects an FY22 comparable sales growth outlook of mid-single digits (prior view high-single digits).
Price Action: DBI shares are trading higher by 1.58% at $15.77 on the last check Thursday.

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