Designer Brands hits 6-month low on trimming annual targets

Designer Brands

05/12/2023 15:15

(Updates)
    ** Shares of footwear retailer Designer Brands  DBI.N  fall
as much as ~34% to $8.47, hitting near six-month low 
    ** Company slashes full-year sales and profit outlook, hurt
by weaker consumer spending environment
    ** "We were impacted by a footwear market that contracted
for the first time since COVID coupled with unseasonably warm
weather, which significantly reduced customer demand for shoes
and pressured our heavily seasonal assortment," says CEO Doug
Howe
    ** "We saw improved performance in casual and clearance
categories this quarter, but this was not enough to offset the
broader lack of demand," Howe adds
    ** Co expects net sales growth to be down high-single digits
compared with previous forecast of down mid- to high-single
digits
    ** DBI also expects diluted EPS in the range of 40 cents to
70 cents/shr vs previous expectations of $1.20 to $1.50/shr
    ** Co also misses Q3 revenue estimates
    ** "The shortfall reflected weaker results across the board"
- Telsey Advisory Group
    ** Including session's move, stock down 10.5% YTD

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))