The company’s gross profit dropped to $252.9 million from $273.4 million in Q2 FY23, while gross margin slipped to 32.8 per cent, down from 34.5 per cent last year. Reported net income attributable to Designer Brands was $13.8 million, translating to diluted earnings per share (EPS) of $0.24, the company said in a press release.
Designer Brands reported a 2.6 per cent decline in Q2 FY24 net sales, totalling $771.9 million.
Gross profit dropped to $252.9 million with a lower gross margin of 32.8 per cent.
Net income was $13.8 million in Q2 FY24, or $0.24 EPS, with adjusted net income at $17.1 million ($0.29 EPS).
The company closed one US store and opened two in Canada.
On an adjusted basis, the company reported net income of $17.1 million, with adjusted diluted EPS of $0.29.
During the quarter, Designer Brands made operational adjustments, closing one store in the US and opening two new stores in Canada. This brings the company’s total store count to 499 in the US and 177 in Canada as of August 3, 2024.
“This quarter, we further built on our track record of steady improvement as we continued to refine and refresh our strategic initiatives intended to accelerate our ongoing business transformation,” said Doug Howe, chief executive officer. “We saw sustained pressure on challenged categories such as dress and seasonal in the second quarter, which we were able to partially mitigate through providing a greater selection of athletic and athleisure brands in our assortment.”
Fibre2Fashion News Desk (DP)
