Designer Brands Inc. (NYSE:DBI), a leading footwear and accessories retailer, stock fell 2.97% (As on June 5, 11:26:34 AM UTC-4, Source: Google Finance) after the company posted mixed result for the first quarter of FY 24 Total comparable sales decreased by 2.5%. Gross profit increased to $245.1 million versus $237.7 million last year, and gross margin was 32.8% compared to 32.0% for the same period last year. The company has delivered adjusted net income of $4.8 million. Cash and cash equivalents totaled $43.4 million at the end of the first quarter of 2024, compared to $50.6 million at the end of the same period last year, with $187.8 million available for borrowings under the senior secured asset-based revolving credit facility, as amended. Debt totaled $476.1 million at the end of the first quarter of 2024 compared to $390.3 million at the end of the same period last year. The Company ended the first quarter with inventories of $620.5 million compared to $637.4 million at the end of the same period last year. According to Circana, the company has outperformed the overall market dollar sales in the performance, leisure, and kids categories.
DBI in the first quarter of FY 24 has reported the adjusted earnings per share of 8 cents, missing the analysts’ estimates for the adjusted earnings per share of 12 cents. The company had reported the adjusted revenue growth of 35.9 percent to $746.6 million in the first quarter of FY 24, beating the analysts’ estimates for revenue of $735.57 million. During the first quarter of 2024, in the United States (“U.S.”) the company has opened one store and in Canada we acquired 28 Rubino stores, opened five stores, and closed one store, resulting in a total of 500 stores in the U.S. and 175 stores in Canada as of May 4, 2024. The first quarter also saw a decrease in total comparable sales by 2.5%.
Additionally, the company has 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, 2024 to shareholders of record at the close of business on June 5, 2024. The company’s debt increased to $476.1 million from $390.3 million at the end of the same period last year.
Designer Brands’ has reaffirmed its outlook. For the full year 2024, Designer Brands Net Sales Growth is expected to be in low-single digits and Adjusted Diluted EPS is expected to be in the range of $0.70 – $0.80.