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Retailer Sees 31% Stock Jump After Q3 Results
11 Dec
Summary
- Designer Brands stock price increased by 31.1 percent.
- Third-quarter net income rose 40 percent to $18.2 million.
- Company anticipates fiscal 2025 net sales to decline 3% to 5%.
Designer Brands Inc. announced encouraging third-quarter results, leading to a substantial 31.1 percent increase in its stock price. CEO Doug Howe highlighted "continued sequential improvement" across financial and operational metrics, attributing the gains to stronger consumer demand and enhanced in-store execution. This positive momentum has extended into the early part of the fourth quarter, bolstering confidence in the company's strategic progress.
The company reported a 40 percent jump in net income for the third quarter ended Nov. 1, reaching $18.2 million, or 35 cents per diluted share, compared to $13.0 million, or 24 cents, in the prior year. Gross profit also increased to $339.6 million, with gross margin improving to 45.1 percent. Despite a slight dip in net sales, which fell 3.2 percent to $752.4 million, the company exceeded Wall Street's earnings per share expectations.
Looking ahead, Designer Brands has updated its fiscal 2025 outlook, now expecting net sales to be down 3 percent to 5 percent. The company anticipates adjusted operating profit to be between $50 million and $55 million. Designer Brands concluded the quarter with a total of 672 stores across its various banners, including DSW, The Shoe Co., and Rubino.
