DSW parent company blows past Q2 estimates
Designer Brands Inc. reported better-than-expected second-quarter sales and earnings as shoppers returned to its stores.
The parent company of DSW and other banners reported net income of $42.860 million, or $0.55 a share, for the quarter ended July 31, compared to a loss of $92.214 million, or $1.36 a share, in the year-ago period. Adjusted earnings per share came to $0.56, more than double the $0.24 analysts had expected.
Net sales increased 66.9% to $817.3 million from $489.7 million, topping estimates of $748.0. Comparable sales increased 84.9%. The company said its sales were driven by increased store traffic as it welcomed core DSW customers back into its store and its strategy to gain market share in athleisure and kids.
Earlier this month, DSW inked a distribution partnership for Hush Puppies, a division of Wolverine Worldwide, in North America. The deal will make DSW the exclusive in-store distributor of Hush Puppies by 2022.
“As we look forward to our strategic growth, we have organized our efforts around three pillars: customer, brand and speed,” said CEO Roger Rawlins. “All three of these pillars interact with one another and simultaneously strengthen each other. Given the positive momentum and strength of our strategy, we expect to achieve an adjusted operating income in the second half of fiscal 2021 that will be in-line or slightly better than fiscal 2019 levels."
[Read More: DSW pilots self-checkouts as retailers react to labor crunch]
The company operates nearly 700 stores under the DSW Designer Shoe Warehouse, The Shoe Company, and Shoe Warehouse banners. It also designs and produces footwear and accessories through Camuto Group, a leading manufacturer selling in more than 5,400 stores worldwide. Camuto Group owns licensing rights for the Jessica Simpson footwear business and footwear and handbag licenses for Lucky Brand.
In partnership with a joint venture with Authentic Brands Group, the company also owns a stake in Vince Camuto, Louise et Cie, and others.